Saving Schemes for Senior Citizens

By: Makemymoney

Once you reach or cross-age bar of 60 years, for the society you become a senior citizen, and for this you earn privileges. The kinds of privileges you receive are in the form of railway ticket or bus tickets to extra interest rates on fixed deposit. People usually plan their retirement since they start working. And it’s good also because when you are in a young stage you have zeal and energy which helps you in working hard. The more you work at a younger stage helps you in keeping your retirement easy. There are many best ways to ensure steady income after retirement is to invest in saving or pension schemes. One should start investing from the very initial age of earning. There are 5 goof investment schemes to opt as a saving scheme for senior citizens.

  • National Saving Certificate

    National Saving Certificate or NSC is a post office based product for saving money. It offers a good interest rate, you can buy NSC in multiple of Rs. 100 every month for 5 years. This is the minimum contribution and interest rate offered is 8.1%. Also, there is no text deduction and an invested amount is tax deductible under section 80C. Under this scheme, premature withdrawal is not allowed. This is a best Saving Scheme for Senior Citizen

  • Fixed Deposit

    Fixed deposit or FD is the best saving scheme, which can be started in banks or post offices. This is one of the most secured and guaranteed return scheme available with financial institutes. In this, senior citizens get 25 to 50 basis points higher interest rates than that of another age group. The max tenure period of running fixed deposit account is 10 years. There is no such max limit of keeping the amount in FD account but min is 100 Rs.

  • Equity Linked Saving Scheme

    ELSS give an excellent return as it’s a market plan. Choose the right type of investment portfolio and it’s not only for senior citizens. It offers tax benefits and invests amount is tax deductible under section 80C. The minimum investment is Rs. 500 and you can invest as high an amount as you want in ELSS. It has a lock-in period of 3 years and before this, you cannot make any withdrawal.

  • Senior Citizen Saving Scheme

    This scheme is specially tailored considering the need of senior citizens. One can apply for SCSS in banks and in post offices. The max deposit value is 15 lakh with a tenure period of 5 years. Its interest rate is higher than any other scheme i.e. 8.5% to 9.5%. And investment made with this scheme is tax deductible under section 80C.

Once you get retire it become essential for you to have a good amount of saving. Saving always secures your life from all sort of emergencies. Also, it gives you a feel of independence. Hence, it is always suggested to do saving during a very initial stage of your earning. These are one of the best saving schemes for senior citizens. 

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