The special thing about Pradhan Mantri Vaya Vandana Yojana (PMVVY) is that its interest rates are higher than Bank Fixed Deposit and Post Office Savings Schemes. This scheme is operated by Life Insurance Corporation of India (LIC).
new Delhi. There are many savings schemes running for senior citizens. These include many schemes including Fixed Deposit (FD), Tax Free Bond. Apart from these deposit schemes, there is also a special scheme available in the market which provides the benefit of pension on lump sum investment over a specific period. This scheme is Pradhan Mantri Vaya Vandana Yojana (PMVVY). The special thing about this scheme is that its interest rates are higher than Bank Fixed Deposit and Post Office Savings Schemes.
A person can invest up to a maximum of Rs 15 lakh in PM Vaya Vandana Yojana. This scheme is operated by Life Insurance Corporation of India (LIC). In this scheme, you have to invest a lump sum amount for pension and then you can choose to get monthly, quarterly, half yearly or annual pension.
Individuals aged 60 years or above can invest in PMVVY. There is no upper age limit in this. The policy term of this plan is 10 years. In this, the minimum pension for the entire period is ₹ 1,000 and the maximum is ₹ 9,250. Loan can also be taken after the policy term is 3 years.
More profit if you invest before 31st March 2022
This scheme is available for investment till 31st March 2023. If you invest in this scheme before March 31, 2022, then LI is also offering a guaranteed pension of 7.4% per annum on it for the financial year 2022.LICAccording to the website, “For the financial year 2021-22, this scheme will provide fixed monthly pension at the rate of 7.40 per cent per annum. This rate of pension will be provided to those who buy this policy till March 31, 2022, for the entire policy term, which is 10 years.
Lump sum investment
A lump sum investment can be made in this scheme. In this, the pensioners have the freedom to choose either the pension amount or the purchase amount. Up to a maximum of Rs 15 lakh can be invested in this scheme. Its specialty is that in this, both husband and wife can invest and take advantage of pension. Maximum pension in this scheme – Rs 9,250 per month, Rs 27,750 per quarter, Rs 55,500 per half year; and ₹1,11,000 per annum.
Multiple options for taking pension
You can take pension payment in a month, three months, six months or a year. According to the pension payment, the rate of interest payment is also determined in this scheme. The interest rate is minimum 7.4% and maximum is 7.66% p.a. For example, if a person is receiving pension payments every month, then the interest rate is 7.45% p.a., quarterly and half yearly pension payments get 7.52% p.a. interest. On the other hand, if a person takes pension only once a year instead of taking it once every month or three months, then he gets 7.66% annual interest.
Higher interest rate than FD
The interest rates of Pradhan Mantri Vaya Vandana Yojana (PMVVY Interest Rates) are higher than bank fixed deposits and post office savings schemes. The interest rate of the Senior Citizen Saving Scheme run by the government is 7.4 percent. At the same time, State Bank of India (SBI FD Interest Rates) gives 6.30 percent annual interest on senior citizen fixed deposits of less than 2 crores with a tenure of five years to 10 years. ICICI Bank (ICICI FD Interest Rates) and HDFC Bank (HDFC FD Interest Rates) also pay interest at 6.35 per cent per annum on FDs with a tenor of five years to 10 years.
