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THE
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Blog
2 mins Read | 4 Years Ago

Which investment has high returns for senior citizens

high-return-investment-options-for-senior-citizens

 

There are a variety of investment plans available for senior citizens. But let us get to know about the plan which offers high returns.

As you're about to retire from your working life, you may feel that you have accumulated enough corpus for post-retirement. Most retirees face the challenge of not outliving retirement funds, especially when the life expectancy is increasing at a fast pace. Also, this is when your earnings stop, but does this mean putting a full stop to your investments? You can still invest in various schemes and ensure a regular stream of income. As a senior citizen, you will surely avoid choosing risky securities and transition to low-risk investment options. This is a good time to make use of investment options for senior citizens.

Let us look at some of the investment options for senior citizens:

  1. Senior Citizens Savings Scheme or SCSS: This is a Government-sponsored scheme with a tenure of 5 years, which can be extended for three years. This SCSS scheme offers returns at an interest rate of 7.4% per annum. 

  2. National Pension System or NPS: This is a pension scheme by the Government of India. Under this NPS scheme, the money of all the investors is pooled together and invested in various asset classes such as Government bonds, corporate bonds and equities. The interest rate on NPS ranges from 12% to 14% per annum. When an NPS Account matures at the age of 60; a senior citizen can operate the NPS Account until the age of 70.
  3. Senior Citizen Fixed Deposits: As against the general Fixed Deposit Accounts, banks offer higher interest rates for senior citizens, which can range between 3.25% and 6% per annum. These deposits have a flexible tenure from 7 days to over a decade. As a senior citizen, you get an additional interest rate of 0.30% per annum on your Fixed Deposits with over 5 years’ tenure.
  4. Senior Citizen Recurring Deposits: One can also open a Recurring Deposit Account, which offers interest rates starting from 4.60% to 6.50% per annum. This type of investment option has a tenure of a minimum of 6 months up to a maximum tenure of 10 years.
  5. Mutual Funds: At the time of retirement, when most seniors aim for capital protection with a fixed income generation, investing in mutual funds needs to be characterised by moderate returns and low-risk capabilities. Debt, balanced and liquid funds fulfil the criteria that senior citizen investment plans. When it comes to selecting a mutual fund scheme, seniors should invest 70% - 75% of funds in debt securities and the rest in equities. This will ensure minimum risk exposure.

These are some of the investment plans available for seniors. Whenever you are planning to invest funds, higher returns should not be the only factor; you should also ascertain your risk tolerance and make an informed decision accordingly.

Terms and Conditions apply.

 

DISCLAIMER

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. 'lClCl ' and the 'I-man' logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.

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