Senior Citizen Savings: If you’re considering investing, this news could be very important for you. The government is running a special scheme. The biggest concern after retirement is regular income and the safety of your savings. With rising inflation, senior citizens must choose investment options that provide a steady monthly income and are risk-free. Several schemes by the Government of India and the Post Office have been designed to address this need, providing not only a fixed return on investment but also ensuring the safety of the principal.

Prime Minister’s Vaya Vandana Yojana (PMVVY) provides a fixed pension

Prime Minister’s Vaya Vandana Yojana (PMVVY) is a pension scheme launched by the central government for senior citizens. Individuals aged 60 and above can invest in this scheme. This scheme requires a lump sum deposit, in return for which the investor receives a fixed monthly pension. Under current provisions, it offers a guaranteed return of 7.40 percent per annum, paid monthly. If an investor opts for a monthly pension, the return is reduced to 7.66 percent per annum. A maximum investment of ₹15 lakh can be made in this scheme, yielding a monthly pension of approximately ₹9,250. Tax exemptions are also available under Section 80C of the Income Tax Act.

Benefits of the Post Office Senior Citizen Savings Scheme

For senior citizens seeking higher interest rates on their deposits, the Post Office Senior Citizen Savings Scheme is a strong option. This scheme offers an interest rate of 7.4 percent per annum, which is generally higher than bank FDs. Individuals aged 60 and above can open accounts under this scheme. Employees who have taken VRS between the ages of 55 and 60 can also benefit from this scheme. If an investor invests ₹15 lakh in this scheme for 5 years, they receive a substantial interest upon maturity. This scheme also offers tax exemption under Section 80C, making the investment even more profitable.

Regular Income from the Post Office Monthly Income Scheme

The Post Office Monthly Income Scheme is for those who want a fixed monthly income while also safeguarding their deposits. This scheme currently offers an interest rate of 6.6 percent per annum. The account can be opened with just ₹1,000 and has a maturity period of 5 years. Significantly, the investor receives their entire deposit back upon completion of the scheme. A maximum of ₹4.5 lakh can be invested in a single account and up to ₹9 lakh in a joint account. The fixed investment earns regular monthly interest, which helps senior citizens meet their daily needs.

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Adarsh P

Adarsh Pal is a content writer at Timesbull Media. He specializes in writing news related to industry updates, the automotive sector, banking, telecommunications, the travel sector, and personal finance. Adarsh has previously worked with several digital media channels. He is skilled at presenting news accurately and disseminating information based on...

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