Investment: If senior citizens continue to get monthly income after retirement, they can benefit a lot. In such a situation, we are going to tell you about some schemes in which senior citizens can benefit by investing. Apart from this, such a scheme is also included in this, in which a fund worth lakhs can also be prepared. Let us know about it…
Senior Citizens Savings Scheme (SCSS)
Senior citizens above 60 years of age can invest in small savings scheme, Senior Citizens Savings Scheme (SCSS) and earn regular interest income. Interest will be payable on quarterly basis and will be applicable from the date of deposit till 31st March/30th June/30th September/31st December.
Under this, there is a lock-in time of five years for the principal amount. Senior Citizens Savings Scheme (SCSS) – The minimum deposit amount in all SCSS accounts opened by an individual will be Rs 1,000 and in multiples of Rs 1,000, with a maximum limit of Rs 30 lakh. SCSS account can be opened singly or jointly with your spouse. Deposits above Rs 1 lakh will be accepted only by cheque. This scheme is eligible for tax exemption under section 80C.
Post Office Monthly Income Scheme (POMIS) Account
POMIS is another small savings scheme, and its investment period is five years. The upper investment limit in single account is Rs 9 lakh and in joint account is Rs 15 lakh. Interest will be payable on completion of one month from the date of account opening and so on till maturity. Investments in POMIS are not eligible for any tax benefits and the interest is fully taxable.
Fixed Deposit (FD)
Most banks usually offer an additional interest of 0.50 percent to senior citizens over and above the normal interest rates offered on FDs of different tenures. FD interest is paid to investors at regular intervals – monthly, quarterly, half-yearly or annually. Banks provide flexibility in terms of deposit tenure.
So instead of locking the fund for a particular period, an investor can spread the amount across different maturities through ‘laddering’. It not only provides liquidity to funds but also manages ‘re-investment risk’.
