I am a senior citizen and was advised by an LIC agent to invest in the PMVYY scheme which was closing on 31 March 2020 at 8% interest rate. I invested on 14 March, but due to the lockdown did not receive any confirmation from LIC. My cheque was encashed on 14 April. Now the agent is saying I will be registered in the new scheme which offers a lower interest rate. What I should do?
Raj Khosla Founder and Managing Director, MyMoneyMantra.com says, “In the current falling rate regime, it is much recommended to carry on with the new PMVVY scheme at 7.4%. Currently a bank deposit yields up to 6.5%, the POMIS fetches 6.6% and SCSS returns 7.4% annually. Thus this 10-year pension scheme is not only one of the highest yielding senior citizen schemes available today but also offers flexibility to choose the pension payment frequency. It is one of the easy ways to take care of your basic monthly expenses.”
I had taken a SBI Max Gain home loan of Rs 65 lakh for 12 years in 2013. The current drawing power is Rs 41 lakh. Since I have some funds available and deposited in the OD account, the current book balance is approximately Rs 3.5 lakh. In other words I have parked about Rs 37.5 lakhs in the Max Gain account. Is it right to continue parking funds in the Max Gain account till it closes or should I close it by paying off the entire Rs 41 lakh?
Adhil Shetty, CEO, BankBazaar says, “A home saver loan lets you park any excess amount in the home loan account for any number of days and pull it out any time for your needs. The money thus kept reduces the total interest outgo on your home loan and helps you close your loan faster. It’s always beneficial to foreclose any loan if you have surplus money. However, calculate the interest being charged, foreclosure charges if any, etc., before you actually go ahead. Remember that so long as the loan account is open, you can withdraw the surplus at any time. Once you close the loan, that amount will no longer be available to you. Also, depositing the remaining amount in the OD account does not automatically close the loan. If you want to close your loan, inform the bank in writing.”