Everyone wants his invested money to be safe, to get good interest and to get regular income on his investment. Regular income is most needed by senior citizens on investment. Senior citizens can invest in the Prime Minister’s Vandana Yojana (PMVVY), Senior Citizens Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS) and Fixed Deposit (FD) schemes of various banks to get good returns. In these schemes, senior citizens are paid interest on monthly or 3 months, so that senior citizens can meet their expenses. Know which of these schemes pay the most interest to senior citizens.
Post Office Monthly Income Scheme (POMIS)
Senior citizens can invest in the post office monthly income scheme for a period of 5 years. It currently gets 6.6% interest annually and the interest is paid to the depositors every month. It has to invest at least 1000 rupees. In this scheme, you can invest up to Rs 4.5 lakh and the joint account holder can deposit up to Rs 9 lakh. Depositors in this scheme cannot withdraw their money before 1 year. Upon withdrawal of premature, you will get interest. At the same time, 2% penalty will be levied for closing the account within 1 year to 3 years and 1% penalty for closing the account within 3 years to 5 years.
Senior Citizens Saving Scheme (SCSS)
Under the Senior Citizens Saving Scheme, elderly citizens can deposit money for up to 5 years and this can be extended for 3 years after completion of the maturity period. Senior citizens get 7.4% interest in SCSS. Interest is available every third month. People above 60 years of age can deposit from Rs 1000 to Rs 15 lakh. Those who deposit money in this scheme also get the benefit of tax exemption under section 80C of the Income Tax Act. Under this scheme, the penalty for closing premature account ie before 5 years is a penalty, which can be from 1% to 1.5% of the principal amount.
Prime Minister’s Vandana Yojana (PMVVY)
Under the Prime Minister’s Vandana Yojana, money can be deposited for 10 years. This year, depositors will get interest at the rate of 7.4%. It is a pension scheme for people above 60 years of age that was launched on May 4, 2017 for 3 years. Now its duration has been extended for another 3 years. Senior citizens can invest in the scheme till March 31, 2021. The scheme provides a pension at the end of the year. However, the depositors may choose to earn interest on an annual basis with a monthly or quarterly or half-yearly basis. After completion of 3 years of this scheme, senior citizens can take 75% of the money deposited as a loan to meet their needs.
Bank Fixed Deposit (Bank FD)
Almost every bank in the country is running the Senior Citizens Special FD Scheme for senior citizens. In this, senior citizens get at least 0.5% more interest from common customers. Some private banks offer up to 1% higher interest. Customers can get FDs in the bank for a minimum period of 7 days to 10 years. While banks give interest around 4% on FDs under 1 year, on 5-year FGs, interest on average is 5.5% to 6%. Some private banks and small finance banks pay up to 8% interest on FD. Interest on bank FD can be taken every month if you want.