After working for the government or any company for several decades, you are given the benefit of provident fund gratuity and many other funds after retirement. To meet your post-retirement expenses, it is important that you invest this fund in such a place from where you can get regular income and there is no risk of sinking this amount. Today we are going to tell you 5 such schemes, which will help you in making your post-retirement life easier and in them interest is also available up to 7.4%.
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is run exclusively by LIC for senior citizens. It is a lump sum scheme of 10 years duration i.e. you have to deposit money for 10 years at a time after which you can take a fixed amount monthly, quarterly, half yearly and annually. If any person is above 60 years of age, then he can invest up to Rs 15 lakh in this scheme. In the financial year 2022-23, interest is being given in PMVVY at the rate of 7.4 percent. The special feature of this scheme is that the assured return is given in this and the interest received in the year of purchase of the scheme remains applicable for the entire period.
Senior Citizen Saving Scheme (SCSS) is a scheme with a tenure of 5 years, on its maturity, you can extend it for a further period of 3 years. You can invest up to Rs 15 lakh in this scheme. At present, interest of 7.4 percent is being given by the government. The special thing about this scheme is that the amount received from it is tax free and gets the benefit of tax exemption under section 80C of Income Tax. During this plan, you can withdraw the amount midway in case of emergency.
Floating Rate Savings Bonds (FRSB) are also a good investment option for senior citizens. You can invest in this for a period of 7 years. Its special thing is that in this, the amount of interest is given twice a year, on 1 January and 1 July. The interest on FRSB is 0.35 per cent higher than the interest on NSC at the post office, but as the name suggests, it fluctuates from year to year depending on the NSC interest rates after investment. There is no upper limit for investment in these bonds.
Post Office Monthly Income Scheme (POMIS) is an investment scheme of 5 years duration. In this, two can invest a maximum of Rs 9 lakh and a single maximum Rs 4.5 lakh through a joint account. At present, interest is being given at this rate of 6.6 percent. In this, the interest amount is credited to your post office savings account every month.
Bank FD is one of the safest options for investment. Senior citizens are being offered interest up to 6.5 on FDs in banks.