Skip to main content

Good Income Option for Senior Retired Citizens From Government Schemes

By




It is always difficult to find a good income option for retired persons who do not have any income option and nil risk appetite . There are few below which may help our senior retired people.

1) Senior Citizen Savings Scheme
 Interest rate: 8.1% p.a. paid out quarterly.
Investment Period: 5 Years
Investment Limit: Min- Rs1000, Max-Rs15 lacs
Where to purchase: Post Office, All Nationalized banks and ICICI bank
Eligibility Criteria: 60 years and above; Retirees above 55 can apply within 1 month of VRS/Superannuation.
Pros: Account can be extended for 3 years after its normal term. Investment amount qualifies for deduction under section 80C up to Rs1.5 lacs. Nomination facility is available. Premature withdrawal allowed after 1st year with 1-2% penalty charge. Interest rates locked for the entire term.
Cons: Interest pay-out frequency is quarterly, not monthly. Interest earned is taxable as per income tax bracket. 
Interest rate: 8.3% p.a. yearly, 8.1% p.a. half-yearly, 8.05 p.a. quarterly and 8% p.a. monthly.
Investment Period: 10 years
Investment Limit: Min- 1.44 lacs Max- 7.5 lacs
Where to purchase: Life Insurance Corporation of India (LIC)
Eligibility Criteria: 60 years and above
Pros: Various pay-out frequencies available. Loan offered against scheme. Interest rates are locked for the whole term.If you like to take yearly once interest then you need to deposit 7.22 lakh instead of 7.5lakh.Plan can be bought from LIC
Cons: Investment not eligible for tax deductions. Withdrawal allowed only for medical emergencies.
Investment tenure is long.
3) Bank Fixed Deposits for Senior Citizens
Interest rate: 7%-8% (including the extra returns offered to senior citizens)
Investment Period: 1 year to 10 years
Investment Limit: Up to 1 Crore
Where to purchase: Any private or public sector bank.
Eligibility Criteria: 60 years and above
Pros: Various pay-out frequencies available. Interest rates are locked for the whole term. Loans available against deposits.
Cons: Investment not eligible for tax deductions except for 5-year deposits offering tax deductions to the extent of Rs1.5 lacs under section 80C.  Premature withdrawal will attract penalty charges of 1% to 2%. Tax saving deposits cannot be withdrawn until completion of tenure.

Labels:

Comments

  1. AnonymousSeptember 29, 2024 at 11:26 AM

    Investment is one of the best ways to achieve financial freedom.For a beginner there are so many challenges you face.Trading on the Crypto market has really been a life changer for me. I almost gave up on cryptocurrency at some point, until I got a proficient trader Bernie Doran, he gave me all the information required to succeed in trading I invested $1500. and got back $16,500.00 within 7 days of investment. His strategies and signals are the best ,he can also help you recover your lost cryptocurrencies, reach out to him on Gmail: BERNIEDORANSIGNALS@ GMAIL. COM or what’sApp +14242850682

    ReplyDelete

Post a Comment

Popular posts from this blog

Why our Mutual Fund Portfolio needs restructure now ?

By
Why Mutual Fund portfolio now require restructure …. It is just because of below 3 reasons 1.     Introduction of LTCG 2.     Categorization of Mutual Fund by SEBI 3.     Introduction of TRI (Total Return Index) Introduction of LTCG : That means frequent buy and sell of funds will put you in the trap of taxation and on a long run basis your return will reduce. Because each time you redeem you will pay tax and while reinvesting you need to pay upfront expense (applicable in both regular and in direct). Also we need to stop running behind those funds which are giving best return in recent times by churning your portfolio again and again may become fatal. So now your responsibility becomes more to choose right fund and stick to it for a lengthy duration. Categorization of Mutual Fund by SEBI : After new guideline from SEBI , a large cap should only consist of large cap (no mid and small cap) Similarly s...
1 comment
Read more

The Monkey , Goat and Stock Story :)

By
So there was this village where one day a man appeared and said that he wanted to buy monkeys. He said that he would pay a hundred rupees per monkey. The villagers caught all the monkeys in the neighborhood and sold them to him for a hundred rupees each. Soon another man appeared and said that he would pay two hundred rupees for each monkey. But there weren't any more monkeys around. They were all owned by the first man. So the villagers went to him and said that they were willing to take the monkeys back and return his money. But the monkey owner was unwilling to sell. The villagers raised the offer price to Rs 150 per monkey, then Rs 175 and finally to Rs 199 but the man just didn't want to sell, even though he clearly didn't have any use for the monkeys. Eventually, just to see whether he would sell, they offered him Rs 200 but he still refused. The villagers were puzzled by this. Finally, one of them figured out that there must be someone else who was going to...
1 comment
Read more

Top Tax Saver ELSS fund to invest in 2014

By
ELSS is Equity Linked Saving Scheme mutual funds which come under 80C for tax savings. ELSS funds offer triple benefits of tax savings, capital appreciation and tax free returns to the investor. Few things you must know: • It is diversified and comes under 80C for tax savings.     • The return and dividends for ELSS are tax free like in PPF. • This has luck in period of 3 years unlike in PPF for 15 years. • In the PPF, the investor must make at least one contribution in a year or pay a penalty. However, there is no such compulsion in ELSS funds. • The returns are entirely dependent on market .However Some of the funds have grown 2 times in 3 years and 3 times in 5 years. How you can maximize return from ELSS? • Make it GROWTH option instead DIVIDEND option and choose best performing funds. • Can make it DIRECT plan in order to save commission and other expense but your agent may not like this  J • Start through SIP for cost averaging. Let...
Post a Comment
Read more