Senior Citizens Guaranteed Return Scheme: A look at SCSS, KVP, and 2 other schemes that can provide guaranteed income to senior citizens; details inside
Post Office Kisan Vikas Patra: Investment in Kisan Vikas Patra certificates doubles in 115 months (nine years and seven months). The initiative is open for investment with a minimum deposit of Rs 1,000 and no maximum restriction. The Kisan Vikas Patra Yojana allows any adult to create an account, either individually or jointly (up to three adults).
Most of the senior citizens look for guaranteed return schemes as they don't have any income source in their old age. The money that they have accumulated during their service period, they want to invest in schemes that can give regular income monthly, quarterly, or yearly. Some of these schemes include the Senior Citizen Savings Scheme (SCSS), Kisan Vikas Patra (KVP), Post Office Monthly Income Scheme (POMIS), and National Savings Certificate (NSC) among others.
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Investment schemes for senior citizens
A look at these schemes provided by post offices, banks and other financial institutions.
Senior Citizen Savings Scheme (SCSS)
Any individual above 60 years of age can invest in this scheme. The interest rate is 8.2 per cent per annum.
SCSS: Minimum investment
A person can invest a minimum of Rs 1,000 and then in the multiples thereof with maximum deposit of Rs 30 lakh. A depositor may open an account individually or jointly with spouse.
Premature submission of SCSS
A person can opt for the premature closure that is subject to certain conditions.
Post Office Kisan Vikas Patra (KVP)
Investment in Kisan Vikas Patra certificates doubles in 115 months (nine years and seven months). The initiative is open for investment with a minimum deposit of Rs 1,000 and no maximum restriction. The Kisan Vikas Patra Yojana allows any adult to create an account, either individually or jointly (up to three adults).
Features of KVP
The amount invested in this scheme doubles on maturity.
- No maximum limit on deposit amount in this scheme.
- Any Indian resident or minor can benefit from it.
- A minimum of Rs 1,000 deposit is required.
- The government reviews the interest rates every three months.
Post Office monthly income scheme (Post Office MIS)
The interest rate in Post Office MIS is 7.4% per year, payable monthly. One can establish an account with a minimum of Rs 1,000. The maximum amount limit for a person is Rs 9 lakh, while the maximum amount restriction for a joint account is Rs 15 lakh. Interest is paid at the end of each month beginning with the date of opening and continuing until maturity.
National Savings Certificate (NSC)
It is a fixed-income investment scheme that you can open easily with any post office.
NSC: Features
- It is a government-backed tax-saving scheme.
- You can invest as small as Rs 100 with no maximum limit.
- You can get it from any post office.
- Interest earned gets compounded annually and reinvested by default but will be payable only at maturity.