There are plentiful curated Investment options for senior citizens such as bank FDs and RDs, post office FDs and RDs, Senior Citizens’ Savings Scheme (SCSS), National Pension System (NPS), Life Insurance Premiums and mutual funds.
The ideal selection of investment for a senior citizen should be to deliver a balance between both income and growth. However, this also be subject to the needs of every individual.
Here are 5 best investment options currently for senior citizens.
> Senior Citizen Fixed Deposits: The FD interest rates for senior citizens are higher than the regular rates. These deposits have a flexible tenor ranging from 12 months to 60 months, which you can choose based on your needs. This option is safe and free from market variables, thus assuring you a fixed return that you can count on.
> Post Office Fixed Deposits and Recurring Deposits: Post Office FDs and RDs work precisely like bank FDs and RDs with an added layer of safety. The money from post office FDs and RDs goes directly to the government and hence there is almost no chance of evasion. Investments in post office FDs (5 year tenure) are tax deductible up to Rs 1.5 lakh however the interest on the same is taxable.
> Senior Citizens Savings Scheme: The Senior Citizens Savings Scheme (SCSS) is a government supported savings scheme. It is more secure than bank FDs since the SCSS money is held with the government.
> Post Office Monthly Income Scheme: This is one of the best savings scheme that enables you to deposit an extreme of Rs.4.5 lakh for single ownership and up to Rs.9 lakh for joint accounts. This monthly income scheme in India offers you an interest rate up to 7.6%, though the income is taxable.
> Debt funds: Since these are mutual funds that emphasis on fixed income investments, they are considered safer. Long-term debt funds can offer you a higher value depending on the performance of the market. They rank high in return on investment and provide you returns that can go as high as 15% per annum.
So, choose the best option and start your investments.