Usually senior citizens invest their money in bank FDs. However, there are many schemes which also offer a regular income option with better interest rate which can be availed.
Investment options for senior citizens
The biggest concern of most senior citizens is a regular income. In fact, if regular income is managed with age, then the biggest tension after retirement ends. In such a situation, it is important to invest in such options where the risk is lowest and there is also an option of regular income. Here we are giving you some investment options other than bank FDs, where you get the facility of regular income on investing as well as benefits like tax exemption in some options. these investment options senior citizens The best investment options for
Senior Citizen Savings Scheme
Senior Citizen Savings Scheme is the most preferred investment scheme of senior citizens. Anyone above 60 years can invest in this scheme. On the other hand, those above 58 years can also invest in special situations. The minimum investment limit is Rs 1000, while the maximum can be invested up to 15 lakhs. The scheme is offering an attractive return of 7.4 percent. Interest is paid every quarter. You do not get any interest on maturity. Interest on extension is subject to change after maturity. At the same time, there is a penalty of 1 to 1.5 percent for premature withdrawal.
Prime Minister Vaya Vandana Yojana
The Pradhan Mantri Vaya Vandana Yojana launched in the year 2017 provides regular income facility to senior citizens. Citizens above 60 years can invest in it and the tenure of the plan is 10 years. At present, interest of 7.4 percent is being available in the scheme. Interest rates are changed every year. Which is directly according to the Senior Citizen Saving Scheme. However, the rates offered to the subscriber are for the full term. This scheme gives pension on monthly, quarterly, half yearly or yearly basis. After 3 years, loan can be taken up to 75 percent of the invested amount.
RBI Floating Rate Savings Bond 2020
Floating Rate Savings Bonds 2020 (Taxable) are also a good investment option for senior citizens. Floating rate means that their interest rates keep changing every 6 months. These rates are linked to the National Savings Certificate. The bonds give 0.35 per cent more returns than the NSE rates. At present, interest of 7.15 percent is being given on them. One can invest in the scheme with a minimum of Rs 1000 and there is no upper limit of investment. The tenure of the bond is 7 years, although it also has the option of premature encashment.