An rate of interest of seven.4% is payable for the April-June quarter within the scheme. The scheme is open to these aged 60 or above.
The scheme matures in 5 years and after maturity, the account will be prolonged for an additional three years by giving an utility within the prescribed format inside one yr of the maturity. In such circumstances, the account will be closed at any time after the expiry of 1 yr of extension with none deduction.
The utmost quantity that may be deposited on this scheme is Rs 15 lakh. A person can open a couple of account in his identify or collectively alongside along with his/her partner in any publish workplace topic to the utmost funding restrict of Rs 15 lakh by including stability in all accounts.
If a senior citizen invests a sum of Rs 15 lakh for a interval of 5 years on the present fee of curiosity, the quarterly curiosity would quantity to Rs 27,750, amounting to an annual curiosity of Rs 111,000. On the time of maturity, the overall curiosity earned on the funding can be Rs 5,55,000 lakh. The whole quantity acquired at maturity might be Rs 20,55,000 (principal plus curiosity of 5 years).
Now, the curiosity earned will be doubled utilizing joint deposits with a partner. In case of a joint account, the permissible most funding restrict additionally doubles to Rs 30 lakh and so does the rate of interest earned in 5 years. Thus, the annual curiosity earned by the aged couple involves Rs 2.2 lakh every year.