New Delhi: If you also fall in the category of senior citizens and want to earn regular income, then there is good news for you. There are many such options for senior citizens in the market. By investing in which you can take advantage of tax related exemption along with regular income. Actually, there is very little hope of better returns on the money deposited in banks. But still, although senior citizens are still being given priority, but in the end, there is not much benefit. In such a situation, it becomes necessary to think about new options for better regular income.
Old age support, invest here
The government and the banking system provide special facilities for senior citizens. So that more interest is given on their deposits than normal people. There are many attractive plans for senior citizens. Out of these, the best way is to consider Fixed Deposit which is safe and gives better returns of earning. In such a situation, there are many different types of investment instruments for senior citizens which can prove to be effective. Old age can be run comfortably by investing money in these means. We will mention to you about 4 such tools, with the help of which senior citizens can get a guaranteed income.
Senior Citizen Saving Scheme (SCSS)
Senior citizens get an interest of 7.4% per annum in the Senior Citizen Saving Scheme (SCSS). The tenure of this savings scheme is 5 years, which can be extended for another 3 years. Senior citizens can invest up to a maximum of Rs 15 lakh in SCSS. This scheme is for senior citizens who want higher returns on their investments. The interest in this scheme is paid every quarter i.e. on quarterly basis. Apart from this, under Section 80C of the Income Tax Act, senior citizens can claim tax deduction of up to Rs 1.5 lakh on investments in savings schemes. This is a small savings scheme run by the government.
Post Office Monthly Income Scheme (POMIS)
This is being told as a good scheme for retired people. This scheme is for those who have retired, they need a fixed income every month. This scheme run by the post office is considered to be much better for senior citizens. Under this scheme, the depositor gets 6.6% interest, guaranteed safety of capital and higher returns as compared to other investment schemes. The scheme does not require any huge amount. If you want, you can start it for just Rs 1500. It has a maturity period of 5 years and maximum deposits can be made up to Rs 9 lakh. However, this amount is for joint account and for single it is Rs 4.5 lakh.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a retirement cum pension scheme for senior citizens run by Life Insurance Corporation (LIC). Senior citizens can take advantage of this scheme till March 31, 2023. In this scheme, senior citizens get pension at 7.40% per annum interest rate, which is paid every month. Its duration is 10 years. Vaya Vandana Yojana helps senior citizens to secure their future after retirement.
Bank fixed deposit
Almost all the major banks in the country are running Senior Citizens Special FD Scheme for Senior Citizens. Under this scheme, the elderly get an interest of up to 1% more than the common customers on fixed deposits. Everyone considers Fixed Deposit as a better instrument in terms of returns. Fixed deposits can prove to be the best source of income for senior citizens from the point of view of safety of deposit and extremely high returns. Bank Fixed Deposits have always been one of the best investment options for senior citizens. In bank FDs, senior citizens get the option to take interest on a monthly, quarterly, half yearly or yearly basis.
Several banks like SBI, HDFC and ICICI are running special FD schemes for senior citizens till June 30, 2021. Many small banks are offering up to 7% interest on bank FDs to senior citizens. However, big banks are offering 6.2% to 6.5% interest. Senior citizens can get FD for 5 to 10 years if they want.
