Life has different phases, starting from being a care-free child to an enthusiastic learner/student, then the responsibility holder of own family and in the old age an experienced & enlightened person but lonely and dependent at the same time.
So, we thought of sharing some best ways to make the post-retirement phase of your life more happening and independent by drawing the maximum risk-free Fixed income from your retirement corpus.
Below are some best investment schemes available in the market:
1. Senior Citizens Saving Scheme ( SCSS )
The scheme is sponsored by government, hence It is very safe and current rate of interest: 8.6 %
- Eligibility – Any citizen who has attained 60 years of age.
- Investment: Maximum amount of Rs 15 Lakh.
It is a 5 years scheme that is extendable for 3 more years.
- Open a SCSS account – It can be opened at any of the Authorized Banks or Post Office.
- Tax Benefits – Tax Deduction upto Rs 1.5 Lakh can be claimed under section 80C of Income Tax Act, 1961.
Example- 8.6% of 15,00000 = Rs 1,29,000/- Per Annum or Rs 10,750/- Monthly.
2. Post Office Monthly Income Scheme ( POMS )
- The current interest rate of the scheme is 7.3 %.
- Investment: The maximum amount of Rs 4.5 Lacs can be invested. In case of a Joint Account the maximum 9 Lacs can be invested in the scheme.
- POMIS does not offer any tax Rebate under Section 80C.
- This is a 5 years scheme and extendable for 5 more years.
Example- 7.3% of 4,50,000 = Rs 32,850/- Per Annum or Rs 2,737/- Monthly.
3. Bank Fixed Deposits
- Interest rates vary from 6.5% to 8.45% per annum for different banks.
- Interest earned on “Fixed Deposit” would be liable for income tax based on the income tax rate applicable to them.
- Regular income as interest payouts on regular intervals like Monthly, Quarterly or Yearly.
- One can invest in FD for minimum period of 7 days and for a maximum of 10 years.
4. Pradhan Mantri Vaya Vandhana Yojana
- Eligibility – Any Citizen Who has attained 60 years of age.
- An assured Interest rate of 8 % PA.
- Return payable monthly for 10 years scheme.
Example- 8% of 7,50,000 = Rs 60,000 /- Per Annum or Rs 5000/- Monthly.
5. Monthly Income Plan (MIP) Mutual Funds
- MIP mutual funds typically provide anywhere between 8% to 12% annualized returns.
- Returns are market-linked and, therefore not guaranteed.
- They are basically “Hybrid Funds” which have 70 – 80 % investments made in debt (Government Bonds and Debentures) and Rest 10 – 20 % in equity.
Example- Aditya Birla Sun Life Regular Savings Fund.