claim: Financial security of senior citizens with PM Vaya Vandana Yojana, gives 8% interest for 10 years. Investment limit doubled to 15 lakh rupees and scheme extended till 2020.
evidence: "The scheme has two USPs. One is the return of 8% p.a. which is a very good rate of interest when you look at fixed deposits fetching not more than 7% p.a. One more advantage is that the rate of return will remain 8% for the next 10 years, which is definitely a boon for senior citizens. It will ensure a smooth and consistent cash flow for them. Given the inflation rate of 4-5% p.a., the guaranteed pension at 8% p.a. is going to be so relieving," says Atul Surana, Certified Financial Planner, Catalyst Financial Planning. [...] "This scheme can be compared to other limited years schemes such as Senior Citizen Savings Scheme (SCSS) or Post Office MIS. The interest rates offered in SCSS also stands today at 8.4% which is locked till maturity once you invest. This is higher than the announced scheme. Also, in SCSS you can invest up to Rs 15 lakh, but here you can invest only up to Rs 7.5 lakh. When I look at both these features, then I stand to gain in SCSS. However, guaranteed schemes always attract us and a guaranteed for 10 years will attract people. Although PMVVY will provide a fixed income for 10 years, it does not factor in inflation which is a dampener. In my view, it’s the assured return which is attracting investors, but there are more lucrative options available in the market where one stands to benefit more," says Jitendra P.S. Solanki, CFP & Planner for Special Needs Member Families.