I have already invested 15lacs in SCSS with 7.4% interest rate. Can I convert it to 8% interest rate? Can I invest another 16lacs in the sane scheme?

Ans: Yes. You can invest Rs 15 lakh more.

Ans: Yes you can, provided there is not exit clause or penalities in closing the SCSS at SBI.

Ans: SCSS (Senior Citizens Savings Scheme): The maximum investment limit has indeed been increased to

?30 lakhs per individual.  


MIS (Monthly Income Scheme): The maximum investment limit is:
?9 lakhs for a single account holder.  
?15 lakhs for a joint account (held by a husband and wife).

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You may invest in Post Office monthly income scheme. 5 year tenure. Monthly interest payment. Current rate is 7.4%. If singly held maximum investment limit is 9 Lac and for joint holding it is 15 Lac. It is GOI scheme offered through Posts hence comes with sovereign guarantee.

Ans: Switching from a 9.25% base rate to an 8.80% MCLR rate on your SBI home loan could reduce your interest costs, given a 0.45% rate reduction. This switch is generally worthwhile for a one-time ? 7,500 conversion fee if you have a longer loan tenure, as it leads to more interest savings over time. However, if your loan tenure is shorter, consider if the savings justify the fee. Evaluate potential future rate changes with SBI to ensure optimal benefits from the switch.
By switching from the current interest rate of 9.25% to the MCLR rate of 8.80%, here’s what you can expect:
Current EMI: ?42,819 New EMI: ?41,277
This reduction in EMI would result in total interest savings of approximately ?4.55 lakhs over the remaining 25-year term, after accounting for the ?7,500 conversion fee. Switching could be a good option if you want to reduce long-term interest payments. ?