Senior citizens are often left with the need for additional funds to suffice their financial needs. In fact, most senior citizens are unaware of the best investment options for senior citizens. Being an informed investor can help you choose from the best investment options for senior citizens in India.
While you may not be able to take care of your family and loved ones anymore, being financially independent is the least you can do for them. All it takes is a little wise planning, a little knowledge of how to track things like the gold rate in Kumbakonam or other places and risk management to ensure that your future is secure. The last thing you would want is to have a financial burden on your shoulders. To ensure this doesn’t happen, here’s a list of some of the best investment options for senior citizens in India:
- Senior Citizen Savings Scheme (SCSS)
Senior Citizen Savings Scheme (SCSS) is a Government of India (GOI) backed investment scheme aimed at providing secure and regular income to senior citizens in India. The Senior Citizen Savings Scheme was launched by the GOI in August 2004. The SCSS allows an individual above the age of 60 years to invest up to Rs 15 Lakhs in this scheme. The money invested in this scheme earns you interest of 8.6% per annum, which is paid on a quarterly basis.
Senior Citizen Saving Scheme (SCSS) offers several other benefits to investors like premature withdrawal facility, loan facility and tax benefits under Section 80C of the Income Tax Act, 1961.
The Senior Citizens Saving Scheme is a great option for retirees who are looking for guaranteed returns with complete security.
- Pradhan Mantri Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Yojana is a low-risk investment option. Moreover, it also provides an assured return of 8% per annum. As an investor in this scheme, you can avail of the benefits through a one-time investment. It guarantees a fixed pension amount during the policy term of 10 years as well as a death benefit.
The amount of pension that you will receive is based on the amount of purchase price and frequency of payment which is selected at the time of purchase. The minimum purchase price for Pradhan Mantri Vaya Vandana Yojana is ₹1,50,000. You can pay for this plan via online or offline mode through any LIC branch office in India.
- Post Office Monthly Investment Scheme (POMIS)
The POMIS offers you a fixed monthly income from the deposit made by you. The amount deposited and the tenure of the deposit decide your monthly income. The interest rate offered is 6.6% p.a, which is subject to change as per the market conditions and government policies. The interest received under this scheme is fully taxable as per the prevailing tax laws and regulations of India.
You can start investing with just Rs. 1000 while there is no upper limit on the maximum investment amount. There are two investment plans available: a single account (one person) and a joint account (two persons). The tenure for this investment scheme is five years. It can be renewed for another block of 5 years anytime within a month before or after the maturity date.
- Invest in traditional investment assets.
One of the prime examples of traditional investments is gold. In addition to generating revenue from it you can also use it as gifts in family festivals and ceremonies. You can invest in both digital and physical gold. The process is same for both, all you need to do is look up today gold rate Warangal or wherever you live and then invest at the right time. You can visit Khatabook to become understand the differences between the two and right strategy to adopt for gold investments..
