The best investment solutions for senior citizens

Senior citizens are privy to certain rights and privileges. Investments with special interest rates are one of them. The golden years are a time to relax and reflect. Maybe indulge in a new hobby or two. But it’s also a time to sit back and make some extra money.

There are quite a few investment plans that specifically cater to senior citizens, offering a higher interest rate than regular ones. They can help pay monthly expenses, while the capital stays intact. Let’s explore a few popular instruments of investment exclusively for senior citizens:

Senior Citizen Fixed Deposit Scheme	Senior Citizen Saving Account

You can earn up to 7.75% interest p.a. of an FD for senior citizens, depending on the tenure. You also get a tax exemption of up to ₹ 50,000, along with other tax benefits. It’s a great place to park your money for a while.	As a senior citizen, you can enjoy quite a few benefits like a saving accounts that offers you free doorstep banking as well as preferential treatment when you visit the bank. But what’s more, you can also enjoy high interest rates when your bank gives you one of the highest interest rates on savings account.

Does this investment solution suit your needs?
Open your senior citizen savings account today.

Senior Citizen Savings Scheme (SCSS)	PPF Scheme

You can start investing in this scheme as soon as you hit the retirement age (up to 60 years in most public sector companies). Your investment amount can start from ₹ 1,000 to ₹ 15 lakhs and earn 7.4% interest p.a. (as of until June 2020). The deposit matures after 5 years, and you can re-invest for another 3 years. It also qualifies for tax benefits under Section 80C of the Income-tax Act, 1961.	This is a highly secure investment scheme that lets you invest up to ₹ 1,50,000 every year. You get tax benefits under Section 80C, a relatively high interest rate p.a. and the option to partially withdraw your money, if you need to.

Pradhan Mantri Vaya Vandana Yojana

Implemented through the Life Insurance Corporation (LIC) of India, in this scheme, you can invest up to ₹ 15 lakhs, and earn 8% interest p.a. for the next 10 years. You also have a monthly payout of ₹ 10,000. Thankfully, this scheme is extended until 31 March, 2023.

Once you cross over 60 years of age, you’ve garnered enough wisdom to spot a good deal when you see one. So check out these investments, and enjoy the savings.

Disclaimer: The contents of this blog are educational in nature. Interest rates are subject to change without prior notice. IDFC FIRST Bank doesn't necessarily sell all of the listed products above.