An interest rate of 7.4% is payable for the April to June quarter in the plan. The scheme is open to people aged 60 or over.
The government may raise the interest rate for PPF and other small savings schemes on September 30; here’s why
PM Kisan Maandhan Yojana: Check eligibility, steps to register for Rs 3,000 monthly pension
The scheme matures in 5 years and after maturity the account can be extended for another three years by submitting an application in the prescribed format within one year of maturity. In such cases, the account may be closed at any time after the expiration of one year extension without any deduction.
The maximum amount that can be deposited in this program is Rs 15 lakh. A person can open more than one account in his name or jointly with his spouse at any post office subject to the maximum investment limit of Rs 15 lakh by adding the balance of all accounts.
If an elderly person invests a sum of Rs 15 lakh for a period of 5 years at the current rate of interest, the quarterly interest would amount to Rs 27,750, i.e. an annual interest of Rs 111,000. maturity, the total interest earned on the investment would be Rs 5.55,000 lakh. The total amount received at maturity will be Rs 20,55,000 (principal plus interest for 5 years).
Now, interest earned can be doubled through joint deposits with a spouse. In the case of a joint account, the maximum allowed investment limit also doubles to Rs 30 lakh, as does the interest rate earned in 5 years. Thus, the annual interest earned by the elderly couple amounts to Rs 2.2 lakh per annum.