Investment options for senior citizens with no risk

Post the age of 60, when there is no regular stream of income, you can still ensure that you reap decent returns by investing in plans where there is no risk. Read further to know more about no-risk investment options for senior citizens.

Everything in life isn't permanent – like your age and your job. There will be a time when you have to retire. This is where investments can make a big difference. With retirement, your income may have come to a halt; however, you can still ensure its continuity by investing in no risk securities. Considering the age constraint, you will have to pick the right investment option.

When you're a senior citizen, you need to utilise your funds well and avoid high-risk options. It is better to select the ones that will provide you with consistent income. Let's get to know the investment options for senior citizens:

Senior Citizen Fixed Deposit: This investment type has no risk as the interest rate is fixed and unaffected by market fluctuations. You can earn safe and assured returns on Fixed Deposit Account . The interest rate for senior citizens starts from 2.50% per annum. The additional rate is valid for fresh deposits and those who want to renew their Term Deposit. You can choose the tenure of Senior Citizens Fixed Deposit as per your convenience, typically ranging from 5 to 10 years.

Senior Citizen Savings Scheme or SCSS: The Senior Citizen Savings Scheme is an initiative by the Government of India. The Ministry of Finance decides the interest rate, which is fixed at 7.4% per annum. It remains the same until maturity. This is also one of the safest investment options for senior citizens. However, bank charges Tax Deducted at Source (TDS) on the interest amount that senior citizens earn every quarter. You can open the account at the post office or any authorised bank with a minimum investment of Rs 1,000. It has a lock-in period of five years. Moreover, SCSS offers tax benefits under Section 80C and Section 80TTB.

Post Office Monthly Income Scheme or POMIS: This type of investment works exactly like FDs and RDs. You can open the account at any post office. If you're looking to earn a regular income, this is an ideal scheme as you receive monthly interest payments. Just like SCSS, POMIS has a lock-in period of 5 years. You can make a premature withdrawal by paying a small penalty. You can start with a minimum investment of Rs 1,500.

You can open a joint POMIS with a maximum of three individuals. These investments help you earn assured returns without any risk factor. When you're retired, you shouldn't stop investing as it ensures wealth creation that you can utilise to manage post-retirement expenses.

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