Senior Citizens 8% Fixed Interest Rate Scheme
In order to secure interest earned on fixed deposit by senior citizens, Prime Minister Narendra Modi has announced on 31st December that 8% fixed the interest rate on fixed deposit would be paid to them. Usually, interest on fixed deposit is paid at the end of the term, but fixed deposit made under this scheme would offer monthly interest.
It is a historic declaration made along with many other such welfare schemes and initiatives on the eve of New Year. The 8% fixed rate scheme gave a sigh of relief and happiness among the senior citizens.
Features of the Scheme
- It offers the guaranteed interest rate of 8% to protect regular income to the senior citizens.
- The scheme applies to senior citizens, i.e. to the citizens of the age above 60.
- The fixed deposit is to be made with the lock-in period of 10 years.
- The maximum amount that can be fixed under the scheme is Rs 7.5 lakh.
Benefits of the Scheme
Senior citizens who are looking for monthly income can invest in fixed deposit under the scheme and can earn consistent income every month without any change in interest rate for 10 years.
Many times bank reduces interest rates on fixed deposit according to cash flow as well as it varies according to the fluctuating economy. Senior citizens whose source of income is from the investment they have made; usually, they make the safe investment such as bank fixed deposits. The scheme protects the senior citizens from such reduction in interest rates.
Senior citizens 8% fixed interest rate scheme would help the senior citizens with the steady income, specifically to those who otherwise don’t have any regular income from social security or getting any pensions for survival!
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