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 Tax saving deposits cannot be withdrawn until completion of tenure.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

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

How To Become Rich???? Part-1

By
You are reading this blog means you have an aspiration to become rich….. Wish you  Good luck   in   your  future   endeavours…. In this materialistic world everybody wants to become rich ….. Isn't it! But very few know the way to find this….. I completed reading the book “think rich and grow rich” by Napoleon Hill, “ Rich Dad Poor Dad” by Robert Kiyosaki and in the mid of reading another awesome book “the richest man in Babylon” by George S. Clason. Just could not stop myself from sharing the secrets with you. Though these books were written almost a century or half a century back, I will try to co–relate this with our modern age. Coming to the point, my back ground is from IT. So I will give you an example of people mindset from this field. As a software engineer I saw people going crazy of working from onsite and making quick money by earning dollars or any other format of currency whose value is stronger as compared to Indian...
1 comment
Read more

Is debt fund is better than a FD with 10% interest?

By
Last weekend I thought of doing a FD and was checking with various corporate FD and Bank FDs What I found DHFL corporate FD for 40 months is giving 10.10% interest. But I had a mixed  experience with FDs because last time when I did FD with HDFC ltd , though I did with high interest rate of 10.50%, I got minimal return because of taxation. This time I did not want to repeat the same mistake. So I was checking what are other avenues where post tax return for me would be better than these high interest rate FDs. I found debt funds are better than bank FDs in long run for post-tax return. Now question arises how?  J Before understanding we need to understand  Cost Inflation Index(CII) What is CII? It is used for calculating long term capital gain from income tax act section 48 CBDT has notified the Cost Inflation Index (CII) for Financial Year 2014-15. Complete Notification is Given Below. SECTION 48, EXPLANATION (v) OF THE INCOME-TAX ACT...
Post a Comment
Read more