These five income options other than FD are good for senior citizens

 

Bank fixed deposits are the preferred investment option for many people. However, senior citizens mostly depend on interest income for their expenses. However, recently a difficult phase is going on as the interest rate on fixed deposits has come down drastically. The economy is unlikely to recover soon from Corona, so seniors need to rethink their portfolios. In this news, we will tell you about four investment options where senior citizens can get high returns on investment given the current situation.

 

Senior Citizen Savings Scheme (SCSS): A maximum of Rs 15 lakhs can be invested in SCSS in multiples of Rs 1,000. The interest in this scheme is payable every quarter, so it can be used as regular income. The SCSS account matures in five years, after which one can extend it for a block of three years. Despite the large reduction in the interest rates of small savings schemes, SCSS was paying 7.45% for the April-June quarter, which is much higher than any other fixed-return scheme available to senior citizens.

 

Pradhan Mantri Vay Vandana Yojana or PMVVY Scheme: This pension scheme has a policy term of 10 years and the pensioner can opt for pension monthly, quarterly, half-yearly or annually. Now the interest in Pradhan Mantri Vaya Vandana Yojana (PMVVY) is higher than the Fixed Deposit Scheme proposed by SBI. This scheme will give 7.40% per annum in FY 2021. Any person who is 60 years or above 60 years of age can avail the Pradhan Mantri Vyavandana Yojana (PMVVY) scheme. The scheme also offers a death benefit. Under this, the purchase price is refunded to the nominee. Earlier this policy was open for a very short period. Then its duration was extended to 31 March 2020. Now it has been increased to 31 March 2023 for another three years.

 

RBI Savings Bonds: These floating-rate bonds are issued by the RBI in electronic form only at 7.15% per annum (0.35% above the current NSC rate). Its rates are reset every six months. Individual (including joint holdings) and Hindu Undivided Family (HUF) are eligible to invest in it. NRIs cannot invest in these bonds. There is no maximum investment limit in bonds. The minimum investment starts at Rs 1,000 and is in multiples of Rs 1,000.

 

Post Office Monthly Income Scheme: POMIS is a good option for senior citizens seeking a steady income. Currently, the scheme offers a 6.60% interest. While the minimum required investment in this is Rs 1,000, the maximum is Rs 4.5 lakh for a single account and Rs 9 lakh for a joint account. To open a POMIS account, you have to open a savings account in the same post office branch. Interest earned in POMIS is taxable.

 

Debt Funds: Since these are mutual funds that focus on fixed-income investments, they are considered more secure than other funds. Long-term debt funds can offer you higher value based on market performance. They give a high rank in return on investment and provide you with returns that can increase up to 15% per year. They also provide high liquidity, although you may have to pay a fee for withdrawals before the minimum investment period.