Introduction:

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government pension scheme in India. It offers a pension income to senior citizens of age 60 and above. It helps them to survive during their retirement period with a stable income.

Guaranteed Returns :

It offers an interest rate which is more than the standard fixed deposits. Because currently they are providing the annual interest rates is about 7.4 % to them. This is based on the Government rules and regulations. At the end of the period the candidate will get the total investment amount and also their final pension payment.

Pension Payment :

The Pension Payment options will be made on monthly , quarterly , half yearly and annual basis.  So these methods of pension payment can be selected by the person  according to their preference and financial needs.

Maturity Benefit :

Maturity benefit means , at the end of the policy period the final pension payment will be returned to the policy holder. It also defines that the principal amount which was invested will not be lost but they will returned the amount with the terms of their policy.

Loan Facility :

Loan facility has some features , they can get the loan after the completion of the first policy year. They can get the loan amount up to 75 % and they can provide the additional financial support based on their needs.

Benefits :

1.  They provide the regular income for the senior citizens.

2. The minimum lock in period is just 1 year , You can also cancel the scheme after one year if needed. But one year of usage is mandatory.

3. The investment is guaranteed by the Government of India, So that the investors can be in relax mode though their amount will be safe. Even though the market rate differs there will be no change in their investment amount.

LIC

Time Deposit Account

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Introduction:

In  the Time Deposit Account if you need to take the money and within that period you have to pay some penalty amount. To avoid this you can pay the amount at the end of the period or at regular intervals.

Characteristics :

1. Fixed Term:   

Fixed Term is a set of period with the start and end date with certain conditions, like rate of interest , restrictions on early withdrawal with fine charges. If the period is fixed it cannot be altered or terminated without penalties.

2. Premature withdrawals:

Premature withdrawal deals with taking money from an account or investment before the specified period. This can be applicable for saving account , retirement accounts. These withdrawals  typically leads to penalties, lower interest rates, or loss of benefits because the funds are accessed before the fixed date so it is important to understand the terms and consequences before making such withdrawals.

      3. Principal Protection :

It refers the guarantee to the initial amount you invest and it will be returned to you at the end. Principal protection ensures that you wont lose your initial investment even the market condition changes. These type of protections are provided by government insurance schemes.

    4. Minimum Deposit Requirement :

It is the smallest amount of money so that you must deposit in your account in order to open and maintain the account. It confirms that an account holder commits a certain level of funds to the account, which can help cover administrative costs or meet the institution’s criteria for account maintenance

 How to open a Time Deposit Account:

    1. Research and Compare Options:

A person can refer different banks and financial institutions and gain some knowledge about the time deposit accounts. They can compare the rate of interest and the terms and conditions. They can take a note about the need of minimum deposit and so about the fees structure for early withdrawing funds.

    2. Choose an Institution:

Choosing an institution is an important one. You have to choose a bank with attractive terms for time deposit account. Verify about the reliability of that bank and confirm that your money will be protected by the perfect deposit insurance because this ensures that your funds are safe and secure, so you can have peace of mind knowing that your investments are protected.

    3. Visit the Institution:

You do visit the bank which you selected and enquire them about the procedure of opening an account in their bank. You can also use their website because you can  gather more details and check whether there is any option of opening the account through online because it allows you to check the convenient options and gather information before making a decision.

   4. Complete the Application:

Complete the application form with your personal details including your name , address and contact information. You have to mention the deposit amount and then select the duration for the time deposit.  So you can provide the details about the fund you are depositing such as whether they are from your savings account or from another account.

    5. Review and Sign Agreement:

Be careful then read and understand the terms and conditions of the time deposit account including the interest rates , maturity dates and about the penalties for early withdrawals. Read twice before signing the agreement to confirm your acceptance.

    6. Monitor the Account :

You just keep tracking your account and checks about the maturity dates , and check whether there is any new information about the interest payments and automatic renewal options from the institution. You have to track your account regularly , because you can protect and save your account from the penalty.

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