Retirement means no work and no worries for most people. However, it also brings a major difference in income, and we can’t ignore the age factor. So unlike young people, pensioners don’t have the time or ability to take investment risks in their life. That is why they need to put their confined money into a scheme that can offer significant benefits and make their future better. If you also want to do so, here are a few plans you can consider.
#1 Fixed Deposit Schemes
fixed deposits (FD) are seen as one of the most preferred savings alternatives amongst senior citizens. A few reasons behind choosing this scheme are:
- Security: Where mutual funds and other investment options hold market risks, FD is the option where you don’t have to stress about the returns. Your money is kept safe in this plan. Plus, senior citizens are usually eligible for better interest rates.
- Flexibility: From tenure to amount, FDs offer much flexibility to the investor. You can change the scheme as per your requirements and make the most out of it.
- Ease of Operation: Being an old investment alternative, you must be familiar with FDs’ working. Therefore, you can easily apply for it.
Apart from these general reasons, there is also a facility of liquidity on fixed deposits. So you can use your money whenever you feel like it. Just remember to search for the highest FD interest rates for better benefits.
#2 Senior Citizens Savings Scheme (SCSS)
India’s government offers various small savings plans for different groups of people divided based on several factors like income and age. SCSS is a dedicated scheme for the country’s senior citizens. The benefit under SCSS is that you can get much better interest rates than savings account returns. These rates get revised periodically. Hence, you need to check with the current offerings before applying for it.
If the economic conditions are in your favor, you will receive high returns. But even if they aren’t, the plan will always be one step ahead of savings accounts. Just like a fixed deposit scheme, this one also provides you with the security of your funds. Even people on the Voluntary Retirement Scheme (VRS) can go for SCSS. However, there is a five year long fixed lock-in period. You must keep this factor in mind before deciding.
#3 Post Office Monthly Income Scheme (POMIS)
The Indian post office also offers different investment schemes like the government, and POMIS is one of them. It is a popular alternative among senior citizens because of its monthly interest payouts. So you can get some additional regular income. But it also consists of a lock-in period of five years. The scheme’s minimum and maximum limits are set to 1500 rupees and 4.5 lakh rupees, respectively. You can also add up to two people into the account to raise the investment limit to 9 lakhs.
Conclusion
There can be a few more options for pensioners’ investment. However, these were the ones that offer the best security and other benefits. FD is a great alternative here due to its tenure flexibility. Plus, you can check with different banks to get the highest FD interest rates.