On World Senior Citizens Day, let’s explore some investment options that offer financial security to senior citizens.
These investment schemes can provide a steady income during retirement, ensuring a smooth financial life for seniors. If you have senior citizens, consider investing in one of these four schemes in their name.
Senior Citizen Bank Deposits: Most banks currently offer an extra 50 basis points of interest on fixed deposits for senior citizens. They also allow interest income to be received in installments, such as monthly, quarterly, semi-annually, and annually.
These bank deposits offer flexibility compared to conventional schemes, allowing seniors to withdraw their money whenever needed.
There is no lock-in period for these deposits, and tax benefits are available under Section 80C for tax-saving deposits held for five years. Many banks offer interest rates of up to 9.5 percent.
Senior Citizen Savings Scheme (SCSS): This scheme, offered by the Central Government, provides regular returns for senior citizens. Interest is paid quarterly on March 31, June 30, September 30, and December 31.
The scheme has a lock-in period of 5 years and a penalty for early withdrawal. Investors can contribute a minimum of Rs. 1000 and a maximum of Rs. 30 lakh.
Post Office Monthly Income Scheme (POMIS): With a maturity period of 5 years, this scheme allows a maximum investment of Rs. 9 lakhs individually and up to Rs. 15 lakhs in a joint account. Interest is paid monthly; however, this scheme does not offer tax benefits.
Premature withdrawal before one year is not permitted, and early closure within three years will result in a 2 percent interest deduction.
RBI Floating Rate Savings Bonds: These bonds, offered by the Reserve Bank of India, have interest rates linked to the National Savings Certificate Scheme, providing an additional 0.35 percent interest.
The minimum investment is Rs. 1000, with no maximum limit, and the maturity period is seven years. Seniors can withdraw prematurely, and interest is paid on January 1 and July 1.