These 3 savings options will be useful for your parents; You will get financial security with good returns

If age starts to fall and there is no means of earning, then the tension of financial security is born. In such a situation, investment options or savings schemes are made for senior citizens. Senior citizens get extra benefit in any savings scheme in India. Apart from this, some savings schemes have been started keeping in mind only the elderly.

Let us tell you about 3 such savings or investment options for senior citizens-

Post Office Senior Citizen Savings Scheme (SCSS)

Annual interest 8.7%, maturity period 5 years

Deposit can be made in multiple of 1000 rupees. Also, there can be no more than 15 lakh rupees in it.

Under SCSS, a person 60 years or older can open an account.

If someone is 55 years or more but less than 60 years old and has taken VRS, then he can also open an account in SCSS. But the condition is that he has to open this account within one month of getting the retirement benefits and the amount to be deposited in it should not be more than the amortization of the retirement benefits.

Under SCSS, the depositor can also keep more than one account at the joint with individual or his wife / husband. But together with all, the maximum investment limit cannot exceed 15 lakhs.

Accounts with less than 1 lakh can be opened in cash, but for more than that, a check has to be used.

Nomination facility available

The account can be transferred from one post office to another.

Premature closure allowed. But the post office will deduct 1.5% of the deposit only after closing the account after 1 year of account opening, while after closing after 2 years 1% of the deposit will be deducted.

After completion of maturity period, the account can be extended for another three years. For this, application has to be given within one year of the maturity date.

Talking about tax, if your interest amount exceeds Rs 10,000 annually under SCSS, then your TDS gets deducted. However, investment in this scheme is exempt under Section 80C of the Income Tax Act.

Fixed deposit

Senior citizens get a few percent more interest under FD or fixed deposits. In such a situation, FD can prove to be a good option for their financial security. For example, FD interest rates in SBI currently range from 5.75 to 6.85 per cent per annum on different maturities but for senior citizens the interest rates are up to 7.35 per cent per annum. Similarly, FD rates in ICICI Bank range from 4 to 7.50 percent per annum, but for senior citizens, these rates are up to 8 percent. You can open FD with different interest by choosing FD rates of different banks or according to your convenience.

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Any citizen of 60 years or more can invest in PMVVY. This is a pension scheme. The maximum limit of investment in this is Rs 15 lakh and this scheme will run till 31 March 2020. This scheme is exempted from service tax and GST. LIC operates Vyavandana scheme only. It can be invested both online and offline. After that, senior citizens start getting pension immediately.

The term of this scheme is 10 years i.e. 10 years of pension. After 10 years, the amount invested in it is also returned.

If for some reason the pension dies within the term of 10 years, then the money invested in it is returned to the legal heir / nominee of the pensioner. Even if the pensioner commits suicide, the deposit will be returned.

Minimum and maximum purchase price or investment and pension amount under Vyavandana scheme

Pension under this scheme can be taken on any basis monthly / quarterly i.e. quarterly / half yearly / yearly.

The maximum pension limit is for a family, the family will include the pensioner, his spouse and dependents.

Interest

Under PMVVY, you get a fixed interest of 8 to 8.30% per year on the amount deposited. The rate of interest depends on the monthly, quarterly, half-yearly or annual basis, on what basis the pension amount will be taken. Every month pensioners will get 8% interest, while annual pension will get 8.30%.

Premature exit and loan

There is also a facility to withdraw premature exit ie before the term ends. In case of serious illness, the pensioner or his spouse will get 98% of the money invested in this scheme as surrender value.

Senior citizens can also take loans on this scheme. This will be 75% of the amount invested. But for this, it is necessary to complete 3 years of the scheme. Also, the interest on the loan amount is fixed every quarter. Until the pensioner returns the loan amount, interest will have to be paid every six months. Actually, the interest amount will be deducted from the pension received.

Option to get out of the scheme in 15 to 30 days

If you are not satisfied with any of the terms or conditions after taking the policy, then you can get out of the scheme within 15 days of receipt of receipt of PMVVY from LIC office and within 30 days of receipt of receipt for online policy. During this period, if the pension is received, then the amount of the stamp duty and stamp duty will be deducted and all the money deposited will be returned.