Lock into the Post-Office Senior Citizens Savings Scheme
Satya Sontanam
BL Research Bureau |
Updated on
April 03, 2021
Seniors deserve a life of dignity - istock.com/fotojog×
For senior citizens looking for the safest fixed income option with a regular pay out, the Post-Office Senior Citizens Saving Scheme (SCSS) is a good bet at 7.4 per cent. The scheme comes with a lock-in period of five years and allows seniors above 60 to deposit up to ₹15 lakh. Leading banks such as SBI and HDFC Bank considered safe are offering seniors interest of 5.8-6.2 per cent per annum on deposits of similar tenure.
Though the current interest rate offered on the PM Vaya Vandhana Yojana is the same 7.4 per cent as that of SCSS, the policy term of ten years for PMVVY is a drawback. Today, we may be closer to the bottom in the rate cycle. But don’t lose sleep over whether locking into the investment for longer tenure could result in opportunity loss if the rates start moving up. The curr
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New Delhi, April 1
Less than 12 hours after slashing interest rates on small savings, Union Finance Minister Nirmala Sitharaman on Thursday withdrew the order claiming that it was an “oversight.’’
“The schemes of Government of India shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn,” Sitharaman tweeted early in the morning.
“Interest rates on small savings to be retained at level of fourth quarter of last financial year,” she said.
The Minister reversed an order announced at 10 pm on Wednesday in view of the ongoing elections, said sources. This would have been the second blow for a large section of the population, especially the elderly and professionals, who either bank heavily on the interest from fixed small savings or put aside for the future in public provident fund. Interest rates on fixed bank deposits have already been falling in tandem w