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When it comes to investments, you always need to do a careful planning and research before settling with an option. This is because, the decision you make can affect the several aspects of your investment like flexibility of operation, tenure and interest rate besides many others. Here we compare between the FDs offered by banks and the Post Office Savings Scheme to decide which among them is the better option for investors looking from different angles. Bank FDs and Post Office Savings Bank FDs are the conventional fixed deposit investment instruments offered by different banks. Any amount of money without any upper limit can be invested in FD for a period ranging from 12 months to 60 months. The rates of interest for FDs vary between banks and for different categories of investors like regular investors and senior citizens. Post Office Savings scheme is operated by Post Office which is also popularly called as small savings scheme. They are known to offer far better interest rates and returns than bank deposits. Here is a comparison of the different features of FD and Post Office Saving Scheme. Interest rate of Bank FD and Post Office To compare the interest rate between FD and Post Office, let us take the case of SBI for example. SBI is the largest lender in the country. While SBI offers only 5.75% interest on your investment in FDs, a five year term post office term deposit can give you 7.4%. The interest rate of PPF is 7.8%. NSC offers 7.6% interest on deposits and the interest rates for deposits in <keyword id="248266" type="PERSON" weightage="20" keywordseo="Sukanya">Sukanya</keyword> Samriddhi and KVP are 8.1 percent and 7.3 percent respectively. Tax efficiency When compared to the banks FDs, some schemes offered by the post office are seen to be more tax efficient. For instance, what is earned from PPF is completely tax exempted. On the other hand, all that is earned from FD is taxable. Under Section 80C, it is possible to get tax savings for bank FDs. Some select post office savings schemes like PPF, National Savings Certificate, and Sukanya Samriddhi can give the investors similar tax benefits. Since post office savings schemes combine in them a higher interest rate as well as some attractive tax benefits, they weigh more than the bank FDs. Advantages for senior citizens in FD and Post Office Majority of the bank deposits do not give any encouraging benefits to senior citizens. Whereas, the Senior Citizens Saving Scheme offers 8.3% per annum. The senior citizens looking for monthly income will find the monthly income scheme much better at Post Offices s it would offer an interest rate of 7.3% per annum. The monthly interest rates on the bank deposits are considerably lower and hence are not that beneficial when compared with the post office savings schemes. Service quality in Bank FD and Post Office In this one aspect, the banks significantly outweigh the post offices. When it comes to customer service, banks work with the latest and advanced technology today. The experience at the post office can be time consuming and tedious involving a lot of paper work. However, considering the significant gains that you have while investing in the post office savings schemes, you can overlook this aspect and settle with these better investment instruments to gain more from your hard earned money.

Bank FD Vs Post Office Saving Scheme : Which Is Better

Top monthly income investment plans in India

No one can hope for a steady income throughout life. The earning potential significantly comes down during old age and hence you can never overlook the importance of saving money for retirement. With proper planning, this is never a difficulty. What you must know on saving for retirement <ul><li>To <keyword id="7839787" type="UNKNOWN" weightage="20" keywordseo="save-for-retirement">save for retirement</keyword>, it is never too early or too late. </li><li>When you are starting to save money for the future, try to save as much as you can.</li><li>If you are already nearing the retirement age, you must increase the percentage of your saving. </li><li>Nevertheless, the earlier you start saving for retirement, the better for you.</li><li>Even if you have started late there are ways to increase your retirement savings. </li></ul>Tips on saving for retirement Never wait for it. Start saving for retirement today. Saving, investing, and reinvesting can move you forward successfully. If you can invest a good amount of money when you are young, it is going to benefit you immensely during your old age. Contribute to EPF If you are a salaried employee and if your employer contributes to EPF, nothing like that. You are already travelling safely. However, ensure that you do not withdraw or take loans from the EPF accumulations. If you take loans from EPF or close it down before you retire, the whole purpose of EPF is falsified. Also, contribute to EPF as much as you can. Senior Citizens' Saving Scheme (SCSS) This scheme is the most popular choice for retirees. Available only to senior citizens or those that retire early, you can avail of the SCSS from a bank or post office. Those retiring early avail of this scheme within a month of receiving their funds on retirement. Post Office Monthly Income Scheme POMIS is a five-year investment. The maximum cap of this investment is Rs 9 lakhs in case of joint ownership and Rs 4.5 lakhs in case of single ownership. For every quarter, the interest rate is set. It is roughly about 7.8% at present. The interest is payable monthly. The interest amount can also be credited to the same account. Fixed deposits FD or bank fixed deposits are yet another popular choice among retirees for saving money. FDs are easy to operate. They are safe and provide fixed returns in a risk-free way. Though the interest rates are falling with the years passing by, senior citizens get to earn an extra percentage of interest. In terms of tenure, fixed deposits also offer flexibility. Mutual funds Following retirement, the non-earning period might extend to two decades or more. Hence a portion of the investment needs to be backed by equity. Retirement income will be subject to inflation. Equities assure returns that are inflation-adjusted and are a better choice in several regards. Tax-free bonds Tax-free bonds are issued to government-backed institutions. These are listed securities and hence can be sold on stock exchanges. Since tax-free bonds mature only after 10, 15 or 20 years, you must make sure you will not need the invested funds in between.

How to save Money for Retirement

The taxation laws in India contain a number of provisions to let the tax payers save on taxes. By taking some informed decisions on how you spend and account, you can save on taxes in a legitimate way. Here we discuss some important deductions under the Income Tax Act 1961. Tips to save on income tax Make the right use of Rs.1.5 lakhs limit allowed under Section 80C Investing up to a limit of Rs. 1.5 lakh in schemes like Tax-Saver FDs, PPF (Public Provident Fund), ELSS Funds, NSC (National Saving Certificate), Life Insurance Premiums, National Pension System (NPS), Home Loan Repayment, Payment of tuition fees of your children, EPF, Senior Citizens Savings Scheme, and Sukanya Samriddhi Yojana can enable you for appropriate tax deductions depending on the case. National Pension System This deduction facilitated by Section 80CCD (1B) allows up to Rs 50,000 for contributing to the National Pension Scheme. The NPS makes it possible to invest in equity and debt pension funds for building a corpus for the retirement life. This can be withdrawn at 60 years of age. Health Insurance Premiums Paying for health insurance premiums can let you qualify for a deduction up to Rs 25,000 under Section 80D. This is permitted on top of all the deductions listed above. In case of senior citizens, this limit is up to Rs. 50,000. The taxpayer contributing towards health insurance premiums for himself as well as for a senior citizen can claim a combined deduction of up to Rs. 75,000 per annum. Deduction on your rent If you are getting HRA, it is possible to claim tax deduction on your House Rent. Though there is no upper limit specified for this, there are some rules that place a cap on the maximum deduction. If you do not get HRA but pay towards rent, a maximum claim of up to Rs. 60,000 per annum is allowed under Section 80GG. Deduction on the home loan interest When you have a home loan running, the interest you pay towards the home loan is tax deductible under Section 24 of the Income tax Act. The maximum limit that you can claim in this regard is Rs. 2 lakh. If the house is rented out, there is no upper limit. Money in your savings account The easiest way to save money on income tax is to keep some money in your savings account. Up to a limit of Rs. 10,000 per year, the interest on savings accounts is tax free under the Section 80TTA. In case of senior citizens, this limit is up to Rs 50,000 applicable in cases of both FD and savings account interest. Give for charity Donations made towards charity enable you for tax deductions. Though there is no upper limit for this, there are different rules that restrict the amount deductible on the contributions towards charities. Across a majority types of donations to the NGOs, this limit is fixed at 50% of the donated amount and up to 10% of the total income that is adjusted. If you want to claim this deduction, the NGOs to which you contribute must have 80 G certificate.

How to save Income Tax in India Schemes to Invest in 2019

Changes and evolving regulatory policies are the usual norms of an economy. And every industry operating within an economy undergoes the same. So it is not surprising that India, revered as a fast developing economy, has witnessed several changes and new regulations have been brought about. 
 
Following the footsteps of several western countries, the government of India introduced the concept of reverse mortgage loans back in 2006. This brought in certain changes within the Indian property market as it opened up a new window for the elderly in the country. Reverse mortgage is the type of home loan that is available exclusively to senior citizens. Also, a reverse mortgage loan is the exact opposite of a typical mortgage loan. 
 
What is reverse mortgage loan? It is a form of loan particularly designed for senior citizens (who are over 60 years of age) and the loan is granted against the equity of property. The borrower does not need to make any statutory payment during his/her entire life for loan against this property. Under the scheme, the equity of the house property is renewed into an income channel without having to liquefy the equity. One of the biggest benefits offered by the reverse mortgage loan is that, in spite of mortgaging the house, the owner has the authority to retain its ownership and can choose to live in the same house for his/her entire life. For example, if a senior citizen wishes to <keyword id="47916" type="UNKNOWN" weightage="40" keywordseo="invest">invest</keyword> in a residential property in Bangalore and considers a suitable home loan, a reverse mortgage loan can turn out to be quite helpful. 
 
How reverse mortgage loan is different from traditional home loans In a normal housing loan, every <keyword id="6357050" type="COMPANY" weightage="40" keywordseo="EMI">EMI</keyword> paid towards servicing the loan increases the home equity. Once the loan has been fully paid, the equity becomes 100%. But reverse mortgage is exactly the opposite. When one chooses to pledge one’s house for reverse mortgage, the home equity decreases with every disbursal. While in a traditional home loan you have to pay an EMI, the same is not applicable in case of a reverse mortgage loan. 
 In India, Dewan Housing <keyword id="25455" type="ORGANIZATION" weightage="40" keywordseo="finance">Finance</keyword> was the first financial institution to launch reverse mortgage loans in 2006. The name chosen was Saksham. Currently, more than 25 prime lending institutions offer reverse mortgage loans. Some of these include the State <keyword id="6355303" type="CITY" weightage="40" keywordseo="Bank-of-India">Bank of India</keyword>, Andhra Bank, Indian Bank, <keyword id="6357132" type="CITY" weightage="40" keywordseo="Canara-Bank">Canara Bank</keyword> and <keyword id="6369971" type="CITY" weightage="40" keywordseo="Corporation-Bank">Corporation Bank</keyword>, among others. <keyword id="6371181" type="UNKNOWN" weightage="40" keywordseo="interest-rates">Interest rates</keyword> for these organisations vary from 10-13% with minimal processing fees. Now the minimum tenure of loan is 10 years and extendable up to 20 years. 
 
Eligibility criteria and how a senior citizen can benefit 
Basic eligibility criteria for availing reverse mortgage loans are: 
· Owner of the house should be more than 60 years of age. 
· The residential property should be self-acquired. 
· If spouse of the owner is a co-applicant, he/she should also be over 58. 
 
So how foes a senior citizen benefit from this? Well, here are some of the ways: 
· In old age when medical expenses begin to rise, RML can obviously come to the rescue. 
· It helps in unlocking illiquid wealth and ensures income generation; it also helps in converting investment into a property into a lump sum or a certain periodic cash flow. 
· The loan provides security to the elderly. 
 
Role of National Housing Bank in promoting RML 
The National Housing Bank (NHB), a 100% subsidiary of the Reserve Bank of India, has been instrumental in fostering the growth of RML in India. The NHB is solely responsible for regulating and refinancing all primary lending institutions to the extent that RML is disbursed by them. The NHB also takes the guarantee to every senior citizen who wishes to avail the benefits of the loan. 
 
There have been multiple speculations about the acceptance and the success of reverse mortgage loans in India. Reviews and perspectives have been mixed. In a survey conducted in Delhi, Kolkata, Chandigarh and Hyderabad, it was revealed that a majority of the borrowers had a favourable take on reverse mortgage loans while most of them had some issues or other about their long-term implications. 
 
Implications of reverse mortgage loans 
However, reverse mortgage loans have recorded certain social implications. As per traditions, Indians have always expressed their desire to pass on their properties to their heirs. With this kind of mental set-up, it obviously takes a considerable time to accept the change. Nonetheless, with changing social mores, the fear of debt has begun to subside. Moreover, the knowledge that in time of medical emergency or any other financial need, senior citizens can always fall back on the cash flow are enlightening the younger generation. 
 
Experts feel that India is a potential market for reverse mortgage loans in keeping with its growing economy, current growth rate, disposable income and life expectancy. While some speculations continue to spark debates, reverse mortgage in India is predicted to perform well in the time to come. 
 
Sampurna Majumder is a professional writer who writes for <a href="http://www.99acres.com">www.99acres.com</a>

Reverse Mortgage Loans In India: A Great Support For Old Age

The Indian government has reduced the interest rate on <keyword id="807514" type="UNKNOWN" weightage="20" keywordseo="small-saving-schemes">small saving schemes</keyword> such as <keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword>, Kisan Vikas Patra and Sukanya Samriddhi scheme. 
 
In a bid to make banks cut their deposit rates, the government has lowered the interest rate by 0.1% for the April-June quarter. 
 
Meanwhile, interest rate on savings deposits has been retained at 4% annually. 
 
A finance ministry notification said investments in the public provident fund (PPF) scheme will fetch lower annual rate of 7.9 per cent, the same as 5-year National Savings Certificate. The existing rate for these two schemes is 8 per cent. 
 
Kisan Vikas Patra (KVP) investments will yield 7.6 per cent and mature in 112 months. 
 The one for girl child savings, <keyword id="3035572" type="UNKNOWN" weightage="20" keywordseo="Sukanya-Samriddhi-Account-scheme">Sukanya Samriddhi Account Scheme</keyword>, will offer 8.4 per cent annually, from 8.5 per cent at present, while it will be the same at 8.4 per cent for the 5-year Senior Citizens Savings Scheme. The interest rate on the senior citizens scheme is paid quarterly. 
 
Term deposits of 1-5 years will fetch a lower 6.9-7.7 per cent that will be paid quarterly while the 5-year recurring deposit has been pegged lower at 7.2 per cent. 
 
"On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis," the ministry said while notifying the rates for the fourth quarter of 2016-17 starting from April 1, 2017. 
 
While announcing the quarterly setting of interest rates, the ministry had said the rates of small saving schemes would be linked to government bond yields. 
 
The move is expected to prompt banks to lower the deposit rate in line with the small savings rate as offered by the government.

Interest rates on small saving schemes like PPF lowered

The CRISIL AAA/STABLE and [ICRA]AAA(Stable), <keyword id="111876" type="General" weightage="100" keywordseo="bajaj-finance" source="Orion">Bajaj Finance</keyword> has good news for all its investors. With effect from November 8, 2022, the fixed deposit rates for all investments starting at Rs 15,000 have been changed. In order to speed up the growth of an investor's capital, all investor categories and tenors now get higher FD interest rates up to 7.85 per cent p.a. Customers under the age of 60 can now invest their money for a 44-month tenor and earn up to 7.60 per cent annually. Senior folks receive an additional 0.25 per cent of all base rates as special rate perks. Therefore, older persons can make up to 7.85 per cent p.a. for a tenor of 44 months. Revised FD rates for customers below 60 years of age The regular rates for customers below 60 years of age have been revised by 10 bps, the revised interest rates are as follows: Senior citizens too enjoy the rate change, along with the additional 0.25% p.a. interest rates. They can now earn up to 7.85 per cent p.a. for 44 months. The table below shows the FD interest rates for senior citizens: Special interest rates Investors looking for higher returns and longer investment terms can opt for special tenure offered by Bajaj Finance on fixed deposit of 15, 18, 22, 30, 33, and 44 months. Below are the updated special rates for all customers. Small monthly instalments In addition to fixed deposits, Bajaj Finance offers the <keyword id="8550098" type="General" weightage="50" keywordseo="systematic-deposit-plan" source="Orion">Systematic Deposit Plan</keyword>, the first monthly savings option in the sector. Each investment is considered as a separate fixed deposit, with investments starting at just Rs. 5,000 per month. You can make small monthly deposit and each deposit matures on a different month in the Monthly maturity scheme and on a single date in the single maturity scheme. Highest safety and credibility ratings When it comes to making an investment, choosing a safe and credible instrument is key to reducing risk and ensuring security of your finances. Since an FD is not linked to market fluctuations, it is a safer investment. What's more, rating agencies such as CRISIL and <keyword id="6354972" type="General" weightage="50" keywordseo="icra" source="Orion">ICRA</keyword> rate the investment instruments of various financial institutions. A high rating means that the instrument is safe, and you can make an investment stress free knowing that you will receive your interest earnings and original invested amount on time and without fail. The <a href="https://www.bajajfinserv.in/fixed-deposit" target="_blank">Bajaj Finance FD </a>has the highest safety and credibility ratings from CRISIL and ICRA, assuring the security of your invested amount. You can benefit from the FD calculator and a 100 per cent digital process in addition to these advantages of the <keyword id="7860093" type="General" weightage="50" keywordseo="bajaj-finance-fixed-deposit" source="Orion">Bajaj Finance Fixed Deposit</keyword> to maximise convenience. With the help of the FD calculator and web application, you may more easily and quickly predict your returns and plan your investments accordingly. Make a safe and secure <a href="https://www.bajajfinserv.in/fixed-deposit-online?ProductName=FD" target="_blank">online FD</a> investment in a matter of steps to increase your wealth. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/the-justice-department-said-that-it-seized-3-4-billion-in-bitcoin-stolen-a-decade-ago-through-the-silk-road-dark-web/articleshow/95365257.cms">The Justice Department said that it seized $3.4 billion in bitcoin stolen a decade ago through the 'Silk Road' dark web</a> <a href="https://www.businessinsider.in/business/startups/news/unacademy-lays-off-10-of-workforce-as-funding-winter-deepens/articleshow/95369741.cms">Unacademy lays off 10% of workforce as funding winter deepens</a> <a href="https://www.businessinsider.in/business/corporates/news/paytms-net-loss-widens-by-20-yoy-to-571-crore-in-q2-but-down-sequentially/articleshow/95369930.cms">Paytm's net loss widens by 20% YoY to ₹571 crore in Q2 but down sequentially</a>

Bajaj Finance raise fixed deposit rates by up to 10 bps – now offers returns of up to 7.85%

The first month of the year calls for new beginnings but it also requires us to look back in the past and learn from our mistakes. Now is also the time when the employers will ask employees to submit their investment proofs to validate their tax saving <keyword id="6362476" type="ORGANIZATION" weightage="20" keywordseo="investments">investments</keyword>. While looking back at your investments or lack thereof, you wonder if you can manage to get a solution where you get more than just saving tax. Not just that, you might be also looking to ensure a secured future for yourself and your family.<a name="_GoBack"></a> It is at this point when you can opt for solution that gives that gives 3 benefits in 1 plan. 
1) Protection for family – Term plan
 a.The family looks upto the bread earners of the family – both for meeting the daily needs of the family and ensuring that the families future dreams are met. However, we all know that life is uncertain and hence it become the responsibility of the bread earner that the family meets its requirement, even when he or she is not around. This is when term <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">insurance</keyword> comes in handy. You can take a huge term cover at a small premium and ensure that cover amount will be enough to meet family’s needs even in the absence of the policy holder. 2) Protection for you – Critical illness cover: Lifestyle diseases are on the rise, owing to a hectic and modern way of life. The two biggest killers in this regard are <keyword id="6355291" type="ORGANIZATION" weightage="20" keywordseo="Cancer">cancer</keyword> and heart ailments. Prevention in both cases is a limited attempt. Both have the potential to disrupt the normal ways of life and wreck a family financially. Costs involved in treatment of both are huge going upto lakhs of rupees. Hence financial preparedness is key, and being selective is smart. Critical illnesses like heart diseases and cancer have risen exponentially amongst metro city dwellers which mean that being prepared financially is imperative in this day and age. <keyword id="6362363" type="ORGANIZATION" weightage="20" keywordseo="health-insurance">Health Insurance</keyword> market is dominated by reimbursement plans, with sublimit for disease, copayment requirements, network hospitals etc. These factors, in combination, make treatment in your terms difficult. Hence, critical illness plans assume significance. They have lump sum payouts, no affiliation with any particular hospitals, or any copayment requirements. They are available for longer terms and some products offer waiver of premiums for the entire term. With the rising costs and complexities, it is essential to consider specialized care against heart and cancer. At a time and age when lifestyle diseases are becoming more common and varied, a health insurance plan is almost a necessity. Only a small section of the population has a special health insurance plan, owing to the belief that the employer cover would suffice in case of a critical illness. What many fail to anticipate is the real cost of treating a disease like Cancer, which can have such a deep impact that it throws their savings and hence their family’s future into disarray. Hence investing in a health insurance plan for you becomes a really smart choice this tax season. 3) Tax savings u/s 80C and 80D – Investments under Section 80C Section 80C helps in reducing taxes as it allows the maximum number of instruments to avail a total tax exemption upto Rs.1.5 lakhs in a year. Some popular investments which qualify for Section 80C exemption are as follows: 
<ul>
	<li>Life insurance premiums</li>
	<li>5-year fixed deposits</li>
	<li>Investment in ELSS schemes</li>
	<li>PPF investments</li>
	<li>NSC, KVP investments, etc.</li>
</ul>Calculate your monthly insurance premium here: 
<iframe src="https://www.iciciprulife.com/term-insurance/iprotect-smart-term-insurance-calculator-times.html?UID=6027&amp;utm_source=TimesInternet&amp;utm_medium=BI&amp;utm_campaign=TripleTaxArticleiPS&amp;cid=Display:Article:TimesInternet:Calculator:DM-TI-Article:iPS:BrandTaxArticle-BI:TripleTaxArticle::Eng::6027:cpc:::" scrolling="no" width="100%" height="400" frameborder="0">
</iframe>
 Investment towards health insurance under Section 80D Health Insurance policy premiums also qualify for tax exemption under Section 80D. The limit on exemption for premiums paid towards self and family is Rs.25,000, which increases to Rs.30, 000 if you are a senior citizen. Another benefit is if you also pay premiums for a health insurance policy for your dependent parents, you can claim an additional exemption of Rs.25, 000 which increases to Rs.30, 000 if your parents are senior citizens. Hence you can claim a total exemption of Rs.60,000 if you and your parents are senior citizens and you pay premiums for two separate policies for yourself and your parents. Calculate your health insurance premium here: 
<iframe src="https://www.iciciprulife.com/health-insurance-plans/icici-pru-heart-cancer-health-insurance-calculator-times.html?UID=6027&amp;utm_source=TimesInternet&amp;utm_medium=BI&amp;utm_campaign=TripleTaxArticleHnC&amp;cid=Display:Article:TimesInternet:Calculator:DM-TI-Article:HnC:BrandTaxArticle-BI:TripleTaxArticle::Eng::6027:cpc" scrolling="no" width="100%" height="450" frameborder="0">
</iframe>
 Disclaimer: The quotes are indicative and TIL bears no legal liability for the calculation.

You Searched For "senior citizen investments" and got 8 results

Bank FD Vs Post Office Saving Scheme : Which Is Better

BI India Bureau

Top monthly income investment plans in India

Ira Alok Puranik

How to save Money for Retirement

BI India Bureau

How to save Income Tax in India Schemes to Invest in 2019

BI India Bureau

Reverse Mortgage Loans In India: A Great Support For Old Age

Sampurna Majumder

Interest rates on small saving schemes like PPF lowered

BI India Bureau

Bajaj Finance raise fixed deposit rates by up to 10 bps – now offers returns of up to 7.85%

ANI

Here’s how you can get Triple tax benefits this tax season

BI India Bureau

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