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This Govt. Scheme Open Till March Offers Higher Return Than Bank FD To Senior Citizens


With rising inflation that has even surpassed the RBI's comfort levels, while the apex bank's MPC committee will not be in for interest rate cut, already lower level of interest rates make investors hunt for different option where they can earn better return on their investible surplus. For senior citizens, besides earning a good deal of return, they also are highly concerned of their capital amount safety and if you also being a senior citizen are looking for safety of your capital plus better return at least than more common bank FDs, you need to gear up as the pension scheme by the name PMVVY or Pradhan Mantri Vaya Vandana Yojana is available only until March 31, 2020.

This Govt. Scheme Open Till March Offers Higher Return Than Bank FD

Features of the scheme

Eligibility: There is no entry age for the guaranteed pension plan. Any senior aged 60 years or more can avail of the scheme. Limit of policy term is 10 year. LIC has been given the sole authority to operate the scheme.

Maximum investment that can be made into the policy is Rs. 15 lakhs.

How to apply for the scheme?

The scheme can be subscribed to both online and offline. For applying online you need to visit the official website of

Step 1 Open the LIC India website by clicking this link: Click on the "Pradhan Mantri Vaya Vandana Yojana" option under the buy policies online tab.

Step 2 On the next page, please click on "Buy Online" button, on the next page, an application form will open.

Step 3 Fill all the required details in the PMVVY application form and click "Get Access ID". An access ID is a 9 digit number which will be received to you by email/SMS.

Step 4 Enter the access ID in the access ID box on the right side of the form and click "Proceed".

Step 5 Choose the PMVVY pension plan of your choice and complete the rest of the steps of application. Your application is now complete. You will be provided with the acknowledgement number and a policy number at the end of the application form.

Return: The return on the plan varies basis the pay out option chosen by you and ranges between 8% to 8.3%. In the scheme, the minimum and maximum pension amount that can be received on a per month basis is Rs. 1000 and Rs. 10000 per month, respectively. Further, the amount of pension will also depend on the premium amount paid by the insured.


Payout options available: Quarterly, half-yearly, yearly and monthly. Also, in respect of the mode of receipt of pension payment one can either get it via Aadhaar enabled payment system or NEFT.

There is a free look period also during which the subscriber to the policy can return the policy if he or she is not satisfied with the scheme. In online buying it is 30 days while in case of physical purchase the free look period is 15 days.

Nominee: In the event when the policyholder dies during the term of the policy, the proceeds or the benefits will be passed on to the nominee of the policy.

Taxation: The scheme like other LIC schemes is not subject to GST taxataion. Nonetheless, the benefits accruing from the scheme shall be taxed as per existing rules.

Loan: After 3 years of running the scheme, the subscriber to PMVVY can apply for loan under the scheme and get up to 75% of the purchase price. The interest on the loan will be adjusted from the pension payment.

Story first published: Monday, January 20, 2020, 10:45 [IST]
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