Sunday, 14 October 2018


Got idle money in your account? Here are 5 BEST investment options

Senior citizens seek high-return investment options that provide better security for themselves and their families.The best investment however, is one that provides sufficient returns while ensuring greater safety.

Thus, investing in risk-free investment options is as important as having a diverse investment portfolio.

Here is the list of some of the recommended investment options for senior citizens:

1. Senior citizen fixed deposits

  • The fixed deposit interest rates for senior citizens are higher than regular FD rates.
  • These deposits have a flexible tenor ranging from 12 months to 60 months, which you can choose based on your needs.
  • This option helps provide incredible growth to your savings. It also ranks high in terms of liquidity since a fixed deposit can be withdrawn any time during the tenor.
  • This option is safe and free from market variables, thus assuring you a fixed return that you can count on.
  • When opting for a fixed deposit, another advantage is that you can choose from cumulative (with monthly or quarterly payouts) or non-cumulative (with compounded interest offered at maturity) FDs to suit your needs.

2.  Senior citizen savings scheme

  • This option allows you to invest a sum from Rs.500 to Rs.15 lakh depending on your savings.
  • It features a fixed tenor of 5 years that can be stretched to further 3 years.
  • It offers you a high rate of return that can go up to 8.6% and is a safe investment option.
  • It has a simple application procedure that doesn’t require you to go through lengthy paperwork. All you have to do is fill and submit a form with your documents attached.

3. Post office monthly income scheme

  • This is a savings scheme that enables you to deposit a maximum of Rs.4.5 lakh for single ownership and up to Rs.9 lakh for joint accounts.
  • This scheme offers you an interest rate up to 7.8% in a scheme that is known offer reliable returns, though the income is taxable.
  • This option provides steady and safe returns unaffected by market forces.
  • It also has provision to transfer the returns directly into your savings account for ease of use.

4. Tax-free bonds

  • These are bonds that are issued by the government to raise money for a project.
  • There is absolutely no risk of non-repayment. The interest returns are guaranteed and absolutely tax-free.
  • The tenor for these bonds can go from 10 years to 30 years, depending on the length of the project.
  • The interest rate for these bonds usually range from 7.3% to 7.5% per year.
  • There are various government organisations that could require investments. These organisations are like the Indian Railways Finance Corporation, Housing and Development Corporation, NTPC limited and more.
  • The maximum amount that can be invested is up to Rs.10 lakh.

5. Debt funds

  • Since these are mutual funds that focus on fixed income investments, they are considered safer.
  • Long-term debt funds can offer you a higher value depending on the performance of the market.
  • They rank high in return on investment and provide you returns that can go as high as 15% per annum.
  • They also offer high liquidity, though you may need to pay a charge for withdrawal before the minimum investment term.\

These are some of the best investment options for those who are retired or considering retirement. Your ultimate decision however, is based on whether you are willing to take risks, especially as some of these schemes are influenced by market forces.


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