In this era of low interest rate, FD is proving to be a less beneficial option for senior citizens. In such a situation, there is an opportunity for senior citizens to earn more interest through some other option.
In the midst of the corona virus epidemic, banks have cut interest rates significantly. Generally, senior citizens who depend on fixed deposits are now getting less interest in it. Many big banks, including SBI, are paying only 6.2 percent interest on FDs ranging from 5 to 10 years. In view of this, today we are telling some such options in which senior citizens can save well.
Senior Citizen Saving Scheme: In this Government Small Savings Scheme, interest is getting at the rate of 7.40% per annum. This scheme matures in 5 years and can also be extended for the next 3 years. Up to Rs 15 lakh can be deposited in this scheme. There is also a tax rebate on an annual investment of Rs 1.5 lakh.
Special FD: SBI, HDFC and ICICI bank are offering special FD scheme to senior citizens. Under this scheme, there is a good interest on FDs of 5 years and above. This scheme will remain open till June 30 this year. Apart from this, small finance banks also get interest of 6 to 7 percent on FD.
Pradhan Mantri Spend Vandana Yojana: This is a retirement and pension scheme for senior citizens. LIC manages this scheme. The duration of PMVVY scheme has been extended till 31 March 2023. Currently, the scheme gets interest at the rate of 7.40 per cent per annum.
Post Office Monthly Income Scheme: This scheme of post office is for 5 years investment. Once invested, the interest rate is fixed up to maturity in this scheme. The interest rate of this scheme for the quarter up to June 2021 is 6.6 percent per annum.
