Senior citizens scheme launched

Senior citizens or those opting for voluntary retirement schemes VRS can look forward to earning 9 per cent interest on deposits up to Rs 15 lakh. The interest on the Senior Citizens Savings Scheme, announced by the government on Tuesday, will be paid every quarter. The interest income, however, will be taxable.

The scheme, to be operated by post offices, has been launched in pursuance of the promise made by finance minister P. Chidambaram in his Budget speech to launch a savings scheme for senior citizens. This scheme comes as a substitute for the Life Insurance Corporation8217;s Varishtha Pension Bima Yojana, which had been withdrawn.

Under the new scheme, citizens of 60 years and above are eligible to invest. The scheme will also cover those who are above 55 and have retired under a voluntary or a special voluntary retirement scheme.