Senior citizen investment: Amid the ongoing pandemic, the banks had reduced the interest rates. Senior citizens looking for fixed regular income were hit the most in this falling interest rate scenario. Top banks, including State Bank of India (SBI) offer maximum 6.2% to senior citizens on their fixed deposits with a tenure between 5-10 years, post office small savings schemes provide relatively higher rate. So let’s take a look at some of the investment options where senior citizens can park their hard-earned money to get a guaranteed regular income.

Here are the list of some of the recommended investment option for senior citizens.

Elderly Savings System (SCSS)

The Elderly Savings Program (SCSS) is a government-run small-scale savings product that currently offers 7.40% annually. The SCSS period is 5 years and can be extended by another 3 years.However, the upper limit of investment in SCSS is 150,000 rupees. SCSS is suitable for seniors who demand a high rate of return and regular income every quarter. Investing in SCSS is also eligible for up to tax credits. Rs 15,000 per year under Section 80C of the Income Tax Act of 1961.

Interest rate: 7.4%

Payable: quarterly

Term of office: 5 years.

Pradan Mantle Vayavandana Yojana (PMVVY)

PMVVY (Pradhan Mantri Vaya Vandana Yojana) is a retirement and pension plan for the elderly. This scheme is operated and managed by Life Insurance Corporation (LIC). The PMVVY system has been extended until March 31, 2023. Currently, the scheme offers a guaranteed pension with an annual rate of 7.40% paid monthly.

Interest rate: 7.4%

Payment amount: monthly

Period of employment: 10 years.

Post Office Monthly Income Scheme (POMIS)

The Post Office Monthly Income Scheme (POMIS) has a tenure of 5 years and once invested the interest rate continues to remain the same till maturity. Currently, for the quarter ending June 2021, the interest rate is 6.6 per cent per annum.

Interest rate: 6.6 per cent

Payable: Monthly

Tenure: 5 years.

Bank fixed deposits have always been a popular choice for most senior citizens. Bank FDs offer monthly, quarterly, half-yearly or annual interest rate payouts. Some banks like SBI, ICICI Bank and HDFC Bank offer special deposits to senior citizens on deposits of 5-years and above. These special FDs are effective till 30 June 2021. Most Small Finance Banks are offering an interest rate of above 7 per cent on some of their tenure to senior citizens.

Interest rate: More than 6% and above 7% in some Small Finance Banks

Payable: Monthly, quarterly, half-yearly or annual interest

Tenure: 5 years to 10 years.