Investment Avenues for Senior Citizens

SCSS is a government-backed scheme designed especially for retirees. It offers regular quarterly interest payouts, safety of principal, and tax benefits under Section 80C. The current interest rate is about 8.20% per annum. To invest, you must be at least 60 years old (55 if retired early within a month of retirement). The investment limit is up to Rs 15 lakh, with a tenure of 5 years. Early withdrawal penalties apply if you close before maturity.

3. Post Office Time Deposits (POTD)

Offered by India Post, these time deposits are low-risk investments with a minimum amount of Rs 200 and no maximum limit. Interest rates vary from 8.2% to 8.5%, depending on the tenure (1 to 5 years). Interest compounds quarterly but is paid annually. Premature withdrawal carries a 2% penalty.

4. Post Office Monthly Income Scheme (POMIS)

POMIS is a low-risk scheme that provides regular monthly income. The maximum investment limit is Rs 4.5 lakh for single accounts and Rs 9 lakh for joint accounts. The interest rate is7.4% per annum, paid monthly. The tenure is 5 years, with penalties for early withdrawal: 2% if withdrawn before 3 years, and 1% if withdrawn after 3 years.