Normally a retiree , who is dependent on the income derived from his retirement benefits , looks for a safe and secure investment . If he / she draws pension , the investment return will be an additional income . Otherwise it will be his / her sole income . Naturally they look for safe and secure investment avenues , avoiding risky investments , even if they are offered better returns .
BANK DEPOSITS
Bank deposits are most popular investment plans as they assure good returns with safety of investment . But in the last 10 years , the deposit interest rates of the banks have shown decline and now stabilized around 7 % . Public sector banks pay between 6.5 % to 7. 40 % for 5 year term deposits for senior citizens while private sector banks pay 7.00 % to 8.35 % for senior citizens . Small finance banks pay between 7.5 % to 9.10 % for senior citizens .
Up to Rs 50,000 of bank interest is tax free and additional interest earned will be added to taxable income of the deposit holder .
Senior citizens also have option of investing in Government backed investment schemes , NBFC / Corporate bonds and debt Mutual funds, which we explore below
Up to Rs 50,000 of bank interest is tax free and additional interest earned will be added to taxable income of the deposit holder .
Senior citizens also have option of investing in Government backed investment schemes , NBFC / Corporate bonds and debt Mutual funds, which we explore below
GOVERNMENT BACKED INVESTMENT AVENUES
SENIOR CITIZEN SAVINGS SCHEME ( SCSS ) :
The scheme is operated by Indian post and available in post offices throughout India . A senior citizen can invest a maximum of Rs 15 lakhs in the scheme . Maturity after 5 years with an interest of 8.7% quarterly compounded and interest payable quarterly .
LIC PRADHANA MANTRI VAYA VANDANA YOJANA
The scheme is operated by Life Insurance Corporation of India . The scheme is for 10 years and fetches interest rate of 8 % pa . Interest in form of pension is payable monthly . A maximum amount of Rs 15 lakhs can be invested by senior citizens .
GOI 7.75 % ( TAXABLE ) BOND 2018
The bonds issued by Reserve Bank of India and are sold through SBI , Nationalised Banks and few private sector banks like ICICI , HDFC etc . Bond is issued for a period of 7 years . As name suggests , interest rate is 7.75 % taxable . One can receive interest annually or at the time of maturity .
NATIONAL SAVINGS CERTIFICATE :
The scheme is operated by Indian post and available in post offices throughout India . Investment in the scheme gets tax rebate under 80 c of the income tax act . Scheme is for 5 years . Interest at
8 % pa and payable only on maturity .
TIME DEPOSIT ACCOUNT WITH POST OFFICE :
One can deposit any amount and a deposit of 5 years fetches interest of 7.8 % with annual payment of interest
MONTHLY INCOME SCHEME OF INDIAN POST ( MIS )
The scheme is operated by Indian post and available in post offices throughout India . One can invest a maximum of Rs 4.5 lakhs in the scheme . Maturity after 5 years with an interest of 7.3 % pa with monthly payment of interest .
KISAN VIKAS PATRA ( KVP )
The scheme is operated by Indian post and available in post offices throughout India . The scheme is for 115 months and 7. 7% pa and payable only on maturity .
The scheme is operated by Indian post and available in post offices throughout India . A senior citizen can invest a maximum of Rs 15 lakhs in the scheme . Maturity after 5 years with an interest of 8.7% quarterly compounded and interest payable quarterly .
LIC PRADHANA MANTRI VAYA VANDANA YOJANA
The scheme is operated by Life Insurance Corporation of India . The scheme is for 10 years and fetches interest rate of 8 % pa . Interest in form of pension is payable monthly . A maximum amount of Rs 15 lakhs can be invested by senior citizens .
GOI 7.75 % ( TAXABLE ) BOND 2018
The bonds issued by Reserve Bank of India and are sold through SBI , Nationalised Banks and few private sector banks like ICICI , HDFC etc . Bond is issued for a period of 7 years . As name suggests , interest rate is 7.75 % taxable . One can receive interest annually or at the time of maturity .
NATIONAL SAVINGS CERTIFICATE :
The scheme is operated by Indian post and available in post offices throughout India . Investment in the scheme gets tax rebate under 80 c of the income tax act . Scheme is for 5 years . Interest at
8 % pa and payable only on maturity .
TIME DEPOSIT ACCOUNT WITH POST OFFICE :
One can deposit any amount and a deposit of 5 years fetches interest of 7.8 % with annual payment of interest
MONTHLY INCOME SCHEME OF INDIAN POST ( MIS )
The scheme is operated by Indian post and available in post offices throughout India . One can invest a maximum of Rs 4.5 lakhs in the scheme . Maturity after 5 years with an interest of 7.3 % pa with monthly payment of interest .
KISAN VIKAS PATRA ( KVP )
The scheme is operated by Indian post and available in post offices throughout India . The scheme is for 115 months and 7. 7% pa and payable only on maturity .
No comments:
Post a Comment