Top 5 Investment Options For Senior Citizens In 2023

Check out the top 5 investment options for senior citizens in 2023.

Top 5 Investment Options For Senior Citizens

Retirement is also referred to as the golden age since it refers to the point in a person's life when they have put in enough effort and want to start enjoying the rewards. But one needs to consider a variety of investment avenues to make sure there is a steady source of income. The Indian government has introduced several investment choices for senior folks, which are offered by numerous insurance providers in the country. Here are some of them:

1. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

The Pradhan Mantri Vaya Vandana Yojana has a duration of 10 years and offers an interest rate of 7.40% p.a. The maximum investment the scheme's subscriber may make is Rs. 15 lakhs. There is no maximum age limit for participation in the program; it is only open to seniors 60 years of age and older. Additionally, it is only usable for Indian nationals, not for NRIs.

2. Senior Citizens Savings Scheme (SCSS)

Senior Citizens Savings Scheme has no risk and guarantees the investor a 100% return on investment throughout the duration of the plan. This scheme has an interest rate of 8.0% p.a. and has a 5-year maturity period. It can be prolonged by a further 3 years, making the total period to 8 years. To register an account under the Senior Citizen Scheme, eligible persons must deposit a minimum of Rs. 1000. The deposit amount is also restricted to a maximum of Rs. 15 lakh.

3. Senior Citizen Fixed Deposit

Fixed deposits for senior citizens are common types of investments. The interest rate that is offered under this scheme depends on the length of the term deposit. Further, the maximum FD deposit amounts that may be placed range from Rs. 1 crore to even higher sums. Typically banks set these limits, which can differ from one bank to another. Given that the interest payout can be set to be quarterly, monthly, half-yearly, or annually, it is a safe bet for the senior citizens of the country. This scheme is designed for seniors of 60 years of age and older. Both Indian citizens and NRIs over 60 are eligible for the fixed deposit scheme for senior citizens.

4. Post Office Monthly Income Scheme (POMIS)

The Finance Ministry supports this scheme, which ensures that senior folks would get a set amount of interest each month. Interest payments of up to 7.1% per year are available to those who choose the POMIS scheme. A maximum investment of Rs. 4.5 lakh is permitted in the program. The amount should be withdrawn after 5 years, which is the maturity term. Older people strongly favour this scheme primarily because it helps them during the period post retirement. The POMIS account may be transferred from one post office to another. After a year from the account's creation, the system also permits early withdrawals; however, premature withdrawals incur a certain penalty.

5. Special Term Deposits With Banks

Many institutions offer older citizens exclusive term deposits with terms of five years or more. ICICI Bank Golden Years FD, HDFC Elderly Citizen Care FD, and SBI WeCare FD are a few instances of special deposits available to senior citizens.

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