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Enjoy retirement with Post office Senior Citizen saving scheme

, March 20, 2012, 0 Comments

Enjoy your retire life along with securing your monthly income with Post office senior citizen saving scheme. You can keep maximum of 15 lakh of rupees in such scheme.

With a return of 9.3 per cent p.a. for five years and a tax deduction of up to Rs 1 lakh the scheme is a perfect match for safety with high return. One important thing is that if you keep any money in bank your money is secured only up to 1 lakh but in this scheme entire money is secured under any circumstances.

As of now Inflation is ruling at 7 percent and Banks are also offering the return on Fixed deposit which is commensurate with this scheme, but consider a scenario where if Inflation falls then Banks will not offer high return on FD. Hence your monthly interest income may not be sustainable in future in case of FD. This is the unique feature of this scheme that you can lock your return for next five years at 9.3%.

Company Deposits also could be good bet in case Investor chose to keep money in deposits offered by credit worthy companies, with a monthly or quarterly payout option. But it is prudent to ensure you don’t hold more than 20 per cent of your debt portfolio in company deposits. No need to keep all your eggs under one basket.