You need to be aware of your investment options and how you can break down your goal into smaller, achievable steps.
As interest rates decline and costs of living rise over the past 15 years, senior citizens are hard hit for good investment options. Fixed deposits rates have come down to 6.5-7% levels. As such, aged investors are only left with avenues that fetch better returns than bank fixed deposits, while not eroding their capital. Let us examine two such schemes — the Senior Citizen Saving Scheme (SCSS), launched in 2004 and the Pradhan Mantri Vaya Vandana Yojna, launched by the Life Insurance Corporation of India in May 2017.
Senior Citizen Savings Scheme (SCSS)
Who can invest?
All individuals aged over 60 can open an SCSS account in a post office or with a bank, which is authorised to open a public provident fund (PPF) accounts. The SCSS account can be held individually or jointly with your spouse (As the amount deposited under this scheme is calculated only with reference to the first or sole holder, your spouse need not have completed 60 years for being a joint holder). One can also borrow money to invest in the scheme. However, non-resident Indians (NRIs) or person of Indian origin (PIO), cannot invest in this scheme.
As being above 60 years of age is a basic criterion, one cannot open SCSS in the name of a Hindu Undivided Family (HUF). There are age relaxations in some cases, though. Investors who have taken voluntary retirement can open an account if they are aged above 55. Similarly, age restrictions are not applicable to retired defence personnel as well. However, for availing the relaxation of age limit you need to open the account within one month from the date of receipt of your retirement money (with proof of its disbursal with a certificate from the employer with details of your retirement period and related benefits). Moreover, you can invest your retirement corpus only. If you have exhausted it for any other purpose, then you cannot benefit from the age relaxation.
This story is from the August 2017 edition of The Finapolis.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 2017 edition of The Finapolis.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
7 Ways to Prevent Text Neck
Our head is heavier at an angle than it is at a neutral position. That means our increasing usage of smartphones for reading, texting, etc is putting undue pressure on our spine
How To Take Your Networking To Next Level
Networking is one of the best ways to use your time
5 Fun Ways To Save Money
There are several simple ways to reduce spending and rack up more cash. Sukanta Kundu lists some interesting ones.
In Search of Higher Returns Amid Falling Rates
As Bank Deposit Rates Fall, Even Conservative Investors Are Switching Assets. Where Can They Go?
National Savings Certificates Help as Interest Rates Fall
National Savings Certificates (NSCs) have been among the most popular tax-saving options for ages. In spite of the advent of market-linked investment products such as equity-linked savings schemes (ELSS), the certificates have retained their charm for certain sections of society. In this column, let us discuss the various facets of this special instrument of investment.
What Drives Us to Invest?
I had made the journey from economics to finance. As part of Keynesian economics, we were taught about the three motives to hold money: the transactions motive, the precautionary motive and the speculative motive; all through my teaching career that remained part of my Keynesian economics. But two decades, later when I immersed myself into the world of investment, I had to develop my own tools to understand the new discipline and make my investors understand the working of their own minds. One night as lay turning on my back, poring over the day’s happenings, suddenly I made a strong connection between what I had studied years back and the problem I was grappling with now: the motives.
Ask The Finapolis
Col. Sanjeev Govila (retd) of Hum Fauji Investments answers readers’ queries on investments, taxation and personal finance. Do you have a question you want answered? Email your question to feedback@thefinapolis.com
Input Tax Credit To Benefit End-customer
Looking at the scale of India, it is reasonable to expect 3-5 years for the system to stabilize
Will GST Really Spike Up Your Bills?
As goods and service providers can claim input tax credit, your net tax bill will reduce say experts
The Bull Run Is Here To Stay
Karvy Finapolis’ event —“Is this the mother of all bull runs?” — evoked a thunderous response from investing public recently in Hyderabad.
