InvestorQ : Which are the best 3 schemes in the market for senior citizens?
krithika Saxena made post

Which are the best 3 schemes in the market for senior citizens?

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Tanya Mehta answered.
3 months ago

Due to the present pandemic prevailing around the world, senior citizens are facing serious issues in terms of receiving interest on their fixed deposits as the rates have been reduced drastically. Senior citizens mostly rely on the interest income from their savings accounts, fixed deposits, and other non-risky investment. Since they are not fetching good returns for now, here’s our dig at few schemes that could provide better returns.

Pradhan Mantri Vyay Vandana Yojana: It is a scheme run by Life Insurance Corporation of India, and was initially offered till March 31, 2020. However, recently the government has approved its extension till March 31, 2023. Under the said scheme, one can make a lumpsum investment up to Rs 15 lakh and will receive a guaranteed annualized rate of 7.4%. One can choose the interest payment option be it monthly, quarterly, semi-annually, or annually. The maturity period of the scheme is 10 years.

Senior Citizen Savings Scheme: The scheme is available to individuals between 55 to 60 years of age to those who opted for the voluntary retirement scheme and to those older than 60 years in all other cases. The scheme offers an interest rate of 7.4% on five-year deposits. Investments made under the said scheme are also eligible for deduction under the old income-tax regime.

Post office monthly income scheme: Under the said scheme one can deposit a maximum of Rs. 4.5 lakh for a period of 5 years. The interest rate offered under the said scheme is 6.6% currently and is paid monthly.
However, besides investment, senior citizens shall also consider the need for emergency funds as the cost of healthcare is higher for those individuals above 60 years. So before planning for best investment schemes they should make sure that they have enough cash in hand to meet their emergency expenses such as daily care, hospitalization, etc.

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Akash Deep answered.
3 months ago

1. The FD interest rates for senior citizens are higher than the regular rates. 2.A non-cumulative option is great for senior citizens as it helps them gain periodic interest payments (monthly, quarterly, or half yearly payout). They can use these payouts to meet regular expenses and for various other investments. 3. When opting for a fixed deposit, another advantage is that you can choose from cumulative (with monthly or quarterly payouts) or non-cumulative (with compounded interest offered at maturity) FDs to suit your needs