How to invest retirement benefit amount? Special schemes for senior citizens

July 28th, 2010| How To.

How to invest retirement benefit amount? Special schemes for senior citizens

The retirement benefit amount should be invested or deposited carefully as it is to be utilized as it is the main source of financial support for at least another 20 years. There are so many people who are facing problem at the sunset of their life, unable to choose a safer option to safely deposit their amounts. To avoid this situation retirement benefits should be deposited, where there is no risk of losing it. People generally invest their money in long term schemes.  One cannot with draw money from these schemes when the need arises.  So it is important to deposit the money in savings accounts.  Banks are offering special saving schemes for senior citizens.  Saving schemes are offered with some special privileges to senior citizens.   HDFC bank’s ‘senior citizen account’, Axis bank’s ‘senior privilege’ and IDBI’s ‘Jubilee plus’ are some examples.

Any Indian can open these savings accounts.  Since these are meant for senior citizens, account holders age should be more than 60.  Union bank allow opening a joint account with people below 60 years of age.  But the senior citizen should be the first applicant.

Minimum balance should be maintained in these accounts also. If it is Rs.10, 000 for the normal account half of that amount should be maintained in these accounts. An average of Rs.5, 000 should be maintained in HDFC and ICICI.  Depending on the category of the bank the minimum balance is Rs.1, 000 to Rs.5, 000 in IDBI bank.  This bank lets you open a new account with a minimum balance of Rs.1000 along with the existing account.

These banks are offering these special schemes for senior citizens keeping in mind the financial needs of them.  They have included some special packages with new facilities and offers.  They also give discounts for fee and charges.  HDFC is giving Easy Shop International debit card to senior citizens without any charges.  Dmat trading accounts are also allowed with least charges.  Traveler cheques are also free for them.  Special counters, 90% loan facility on deposits are some more examples. Banks like City bank and IDBI bank take the services of counselors to bring awareness about the investments. Under Mahesh Cooperative Urban Bank Lakhpathi Yojana deposit scheme, if you deposit Rs.1, 082 for 72 months, 8% interest will be paid and the total amount you get is Rs.1,00,063.

Maintaining a Savings account is necessary to face emergencies.  Some banks convert the money in the savings accounts to short term fixed deposits after a period of time.  This is called Auto sweep facility.  Select a bank which is near to the house. On line banking transactions sometimes prove dangerous.