Senior Citizens a guide of the best Investment Options

Senior Citizens a guide of the best Investment Options

 Senior citizens in the earlier times were dependent for financial needs on their children. However, now times have changed with the availability of better opportunities of investment, rising income, and financial awareness, now senior citizens stay financially independent. Many fund their lifestyle with investment, income, and savings. However, with increasing longevity, inflation, and rising medical care cost, senior citizens are expected to look for more income avenues. The investment options provided by the government are beneficial and senior citizens should certainly take advantage.

Investment Options for Senior Citizens

 Senior Citizens Savings Scheme

  • Eligibility is for people over or equal to 60 years. Voluntary retirees may invest at 55 years.
  • Investment can be 15, 00,000 as maximum.
  • The current interest rate is based on the market and government bond 5-year yield. Mostly the interest is paid each quarter. It is locked as the investment is done. Premature account closing is possible and investment receives Section 80C deduction.
  • Limitation is that the there may be decline in the interest rate and it is taxable.


 Bank and Company Deposits

The popular and oldest saving form are the Bank FDs in saving for the senior citizens. Investing money in company deposits assures returns. Besides, the interest rate is higher in comparison to the interest rates of the Bank FD.

  • Banks have a set age limit, but permit 10 years older or younger to have an account single or joint.
  • The investment limits ranges from 5000 as per the company or bank.
  • Most banks give to seniors’ 0.5% more and the banks offer from 4 to 8%. The deposits in the company provide 8-8.9%, assuring a stable income. In fact, some corporate deposits give to senior citizens higher returns.
  • Recently the interest rates are falling down and the FDs in the company are at risk that invests in AA rated companies. The earned interest is taxable.
  • Check here for Medicare Supplement Rates 2020

Most investors wish to invest to get sky-high returns in the shortest time and this should be without losing principal money invested. This is the reason investors keep on looking for top investment plans such that in a few years or even months want to double their money and with no or very little risk.  However, it must be accepted that there is no existence of investment products offering low risk and high returns. Actually, risk reality, and returns are related inversely, higher the risk, higher the returns and vice versa.