Recently,there's been huge outcry over #Cessation of 7.75% #RBI #taxablebonds,that were issued in Jan2018,with 7yr maturity
Outcry is unjustified
#Repo rate is 4% now,lowest in last 20 yrs,to benefit borrowers
Its only practical to see realignment
of lending rate&savings rate!
For those in tax bracket of 30%,return is 5.4%,while for those in lowest bracket of 10%,post-tax return is 6.97%
Those in 30% bracket but with 5Cr+ invested,get post tax return of 4.4%
#Cessation means no fresh subscribers;Existing investors dont need to redeem till maturity!
Those alleging,#SeniorCitizens will get adversely affected by #Cessation of these bonds,are wrong
Senior citizens can invest in #VayaVandanaYojana,with 10 yr lock-in,at 7.4%;This scheme was to expire on 31stMarch2020,but has been renewed for another 3yrs by @narendramodi gov👍
#VayaVandana's effective monthly interest rate is 7.66% &since its a #pension scheme,interest can be availed monthly,quarterly,half yearly or yearly,to ease cash flow concerns of senior citizens
Maximum amount that can be invested by one,is 15 lakh
GoI can reset rates every Yr!
#SeniorCitizenSavingScheme,SCSS
also has 15 lakh investible cap by a single person@7.4%,but with 5 yr lock-in
In #SCSS,interest is paid only quarterly&GoI can reset interest rates,every qtr,if it wishes to
With #SCSS+#VayaVandana,a #SeniorCitizen can invest upto 30 lakh@7.4%💪!
Show me one country globally besides India under @narendramodi where benchmark lending rate #Repo,is 4%&yet,#PF rate is 7.1%,rate for #SeniorCitizens is 7.4%&rate under #SukanyaSamridhi
yojana,to empower girl child,is 7.6%
GoI has managed #InterestRate curve,very effectively
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