I am a 65-year-old senior citizen. My Senior Citizen Savings Scheme has matured, and I want to withdraw the entire amount with interest and reinvest the principal amount of Rs 15 lakh for five years. Can I reinvest in the same scheme for five years? What should be my investment strategy?
Reply by Rajiv Bajaj, Chairman & MD, Bajaj Capital Ltd.
If you're considering other investment options beyond the Senior Citizen Savings Scheme, there are some excellent alternatives you can explore. For instance, investing in AAA-rated Corporate Fixed Deposits and PSU Bonds could be a great choice for the next five years.
Let's break it down a bit:
Corporate Fixed Deposits: Companies like Bajaj Finance and Mahindra & Mahindra offer AAA-rated Corporate Fixed Deposits. These are top-tier investment options, known for their safety and reliability.
Interest Rates: Currently, for a five-year term, these FDs provide an interest rate of 8.10% for general investors. If you're a senior citizen, you can benefit from an even higher rate of 8.35%.
PSU Bonds: Another attractive option is investing in secured PSU Bonds, such as those from Uttar Pradesh Power Corporation Ltd. These bonds are backed by public sector undertakings, adding a layer of security to your investment.
Yield Rates: The prevailing yield for a five-year period on these bonds is around 8.70% to 8.80%.
Investment Strategy: You might want to consider investing Rs 15 lakhs in your wife's name, treating it as a gift. This way, you can diversify your investment portfolio while potentially optimizing tax benefits. By spreading your investments across these secure options, you can ensure steady returns and maintain financial stability over the next five years. If you need any further details or assistance with the investment process, feel free to ask!
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