People often begin investing in advance to secure their financial future during retirement. Many individuals choose government schemes as a safe investment option. These include the Senior Citizens Saving Scheme, NSC, PM Vaya Vandana Yojana, Atal Pension Yojana, and Saral Pension Scheme. These programs enable people to access government pensions during their old age. However, there’s another lesser-known option for securing a monthly pension – RBI bonds.
RBI’s floating rate saving bonds currently provide a higher interest rate, at 7.7%, surpassing the rates of NSC and SCSS. The government adjusts the interest rates every six months, and there’s no maximum investment limit. These bonds mature in 10 years and are considered a secure investment, with the government guaranteeing returns linked to inflation. This makes them an attractive choice for retirement planning. However, it’s crucial to understand that there may be taxes applicable to the deposited amount, so comprehending the tax implications is essential.
If an individual invests Rs 54 lakh in these bonds, they can expect a semi-annual income of around Rs 2 lakh upon maturity. In practical terms, this means an investor could receive a monthly income ranging from Rs 33,000 to Rs 34,000, depending on their specific investment.