As senior citizens can’t manage to pay for to chance their tough-earned savings, it’s miles always better for them to put money into schemes that offer assured returns. Senior citizens have to discover volatile options like mutual funds simplest after they have maxed out investment in safer schemes.
There are two schemes, particularly PMVVY and SCSS, that provide assured returns and peace of mind. Both those schemes are backed by way of the Government of India. These schemes can paintings as a safe supply of everyday hobby income. Here’s a take a look at important features of each scheme that senior residents need to recognize:
PMVVY
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is run through LIC. It is a government-subsidized pension scheme for senior residents’ elderly 60 years and above.
Senior citizens can invest as much as Rs 15 lakh in PMVVY for monthly/quarterly/1/2-every year/every year pensions. The PMVVY account holders can get a pension beneath the scheme for 10 years. While the interest quantity is paid as a pension underneath the scheme, the essential amount is again after the crowning glory of 10 years.
The current hobby charge on PMVVY deposits is 7. Four% in line with annum payable monthly. By shopping for the PMVVY plan with Rs 15 lakh, senior citizens can get a guaranteed Rs 9250 month-to-month pension for 10 years.
SCSS
Senior Citizen Savings Scheme (SCSS) is also one of the high-quality schemes for monthly, quarterly half-every year or annual pensions. The go back on investment underneath SCSS is assured by means of the Government of India.
SCSS scheme is presently being administered with the aid of the Post Office and some banks like SBI. A senior citizen can make investments up to Rs 15 lakh beneath SCSS. The scheme will pay the hobby on funding on a periodic foundation whilst the major quantity is again on adulthood.
The SCSS account offers hobby on the invested amount for a period of 5 years. Senior citizens can practice for a one-time extension of three years inside twelve months of the maturity of the account