Senior citizens have very little option for regular income. Even the options that are there, they do not get much benefit from them. In such a situation, a good regular income can be made by making the right strategy. The special thing is that there is no risk in it and it is also better in terms of tax.
Fixed deposits in banks are the most preferred option for investing in senior citizens. But for those who do not have any other option for regular income, FD does not become a beneficial option. In such a situation, senior citizens must also know about some such options, which can ensure their regular income. Today we are giving you information about these options. The most important thing is that these options are absolutely safe, better in terms of tax, liquidity facility and are easily managed.
1. Senior Citizens Savings Scheme (SCSS): In this scheme specially designed for senior citizens, you can invest Rs 15 lakh for 5 years. It can be extended further for 3 years. Talking about the interest rate on this scheme, it is also at the rate of 7.40 per cent per annum. You can opt for payment under this scheme on quarterly basis. You will get the facility of investment in Senior Citizens Scheme in most of the government banks or post offices.
2. Pradhan Mantri Vaya Vandana Yojana (PMVVY): You can invest Rs 15 lakh in this scheme for 10 years. At present, you are getting interest at the rate of 7.40 percent on this scheme. By investing in this scheme, you will get payment every month. You can invest in this scheme through Life Insurance Corporation of India or online.
3. RBI Floating Rate Bonds: You can invest 15 lakh or more in RBI. It has a lock-in period of 6 years for people above 60 years of age. There is a lock-in period of 5 years for those above 70 years of age and 4 years for those above 80 years of age. At present, interest is available on RBI floating rate bonds at the rate of 7.15 per cent. It is paid every 6 months.
4. These options also: Apart from this, you can keep 10-25% of your savings in the savings account of the bank so that you can easily withdraw and meet the necessary expenses in a short time. If you want, you can also invest some part in the FD of the bank or the National Savings Scheme of the post office. You will also get the benefit of tax exemption under section 80C of the Income Tax Act by investing Rs 1.5 lakh annually in this.
Investments under this portfolio can be beneficial for those who currently have an amount of less than Rs 75 lakh or Rs 1 crore and do not have the option of earning from pension or rent. Almost all of these options are earning interest at the rate of 7 per cent or more per annum. With this strategy, investing up to Rs 1 crore can make up to Rs 55,000 per month. The special thing is that there will be no tax or any other hassle on this.
Senior citizens get the benefit of deduction of up to Rs 50,000 under section 80TTB in addition to Rs 1.5 lakh under section 80C of the Income Tax Act. The good thing about investing in this way is that there will be no hassle of understanding the product or complexities related to the market.
