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The PPF accounts of myself (73 years) and my spouse (67 years) have matured lately. We each had been in personal jobs. Therefore no month-to-month pension is acquired. We’ve some curiosity revenue from Financial institution FDs. Please advise as to the place we are able to safely make investments this PPF maturity proceeds in order that we are able to get month-to-month / quarterly curiosity at higher charges in comparison with financial institution FD charges that are most 6% as of now with none danger to the capital.
It has actually grow to be very troublesome for senior residents to outlive in low rate of interest period specifically when they don’t have any avenue to complement their curiosity revenue. For my part you’ve gotten the next three choices to take a position your matured quantity of PPF account giving your higher returns and that too with none danger to the capital.
To start with, you each can make investments individually in Senior Citizen Saving Scheme (SCSS). Curiosity on SCSS is payable quarterly. At the moment the speed of curiosity is 7.4% p.a. Although the rate of interest for SCSS is introduced each quarter by the federal government however the rate of interest will get fastened for the entire tenure of 5 years on the price relevant on the time of constructing the deposit. You can also make a number of deposits below SCSS however at no cut-off date the combination of deposits in all of the accounts opened below SCSS can exceed the edge of fifteen lakh rupees. If you want you may lengthen the tenure by two extra years on the time of maturity.
Secondly along with 15 lakhs every in SCSS, you each can moreover make investments Rs. 15 lakhs individually in Pradhan Mantri Vay Vandana Yojna (PMVVY). That is an annuity scheme with return of premium. This scheme is managed by Life Insurance coverage Company of India for presidency. Presently in PMVVY additionally you get 7.4% of return p.a. for ten years of its tenure. You will have choice to go for month-to-month, quarterly, half yearly and yearly fee choices and the efficient yield will change accordingly.
The steadiness quantity you may put money into Floating Charge Saving Bonds of Reserve Financial institution of India. The speed of curiosity payable on these bonds in contrast to SCSS and PMVVY is floating and will get modified each six months. The curiosity payable on these bonds is benchmarked in opposition to curiosity payable on Nationwide Saving Certificates and is larger by 0.35%. Presently the speed of curiosity payable on these bonds is 7.15% p.a. Curiosity on these bonds is paid on thirtieth June and thirty first December yearly. These bonds have a tenure of seven years. One can make investments any quantity below these bonds with out there being any higher financial restrict.
Balwant Jain is a tax and funding skilled and will be reached on jainbalwant@gmail.com and @jainbalwant on Twitter
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