Investment options for senior citizens: Its never too late

Investment Options for Senior CitizensBest Investment options for Senior Citizens

Life can be a lot difficult if you have no source of income. Though this can rarely happen with younger group but is certainly true for senior citizens.

Life for them can be a lot hard if they don’t plan beforehand. Expenses never stop though your income can.

Thus, always make sure that you carry a backup plan.

If you want to live on your own terms then it would be a good idea to plan to invest.

Investments can take you long way in not only planning your future but securing it as well. It can help you beat inflation and can give you a monthly source of income.

But don’t worry if you didn’t plan while you were young as it is never too late. You can still find many lucrative options that will help you secure your money. This will not only give meaning to your life but will also help you shape the life of your dependents.

With that said,

Here is the list of Investment options for senior citizens that will help you guide and secure your future. First on the list is:

1. Post office scheme: Monthly Income 

Investment Options

If you are looking for absolute risk free investment option with guaranteed returns then post office scheme would be the best option.

They provide an absolute guaranteed return of 8.4% per annum. They are considered one of the safest options because they don’t invest in equities.

This way they not only protect themselves but money of their clients as well and which ultimately helps them to have surety of their returns.

You can invest as minimum as Rs.1500/- or in the multiples of it. The maximum you can have in a single account is Rs.4.5 lacs.

If you maintain a joint account then you can have no more than Rs.9 lacs.

You can reap the benefits out of your post office scheme for maximum of 5 years and then can apply for a renew.

Don’t worry if are not able to continue the scheme for long. You would get back your money after a lock-in period of 1 year by paying a small fee. The fee would be like:

  • Withdrawal before 3 years: 2% of your deposit maintained and
  • Withdrawal after 3 years: 1% of the deposit maintained.

This can be better explained with an example:


You have Rs.1,50,000/- in your account, now let’s take 2 scenarios:

  1. You want to withdraw your cash after 2 years then with 2% penalty you would only loose Rs.3000/-.
  2. You want to withdraw you cash in your 4th year then in this case you would be charged only 1% which then will work out to be Rs.1500/-.

This is one of the best plans you can consider for yourself, as it gives you much of the flexibility with rarely any conditions.

2. National Saving Certificates:

National Saving Certificates

These certificates are saving bonds offered by the Govt. of India. They not only help you save your money but also give tax advantage under Section 80C of income tax act 1961.

National saving certificates can be purchased from any post office and can be bought for a maturity period of 5 and 10 years.

There is an added advantage of having these certificates. They are very popular among people, because of their popularity they are widely accepted by banks. You can avail loan from any nationalized bank by keeping your certificates as collateral. This way you would be able to meet your immediate need without surrendering your saving certificates.

How much you can earn…?


To find how much you can earn on your deposits, please refer to this table on India Post. As a senior citizen you can fetch an interest rate of 9.2% on your deposit amount for 5 years, which is great and far better than fixed deposit offered by banks.

How much you can invest…?

Want to invest small, then this one is for you…

You can start investing with as low as Rs.100/p.a. and then can invest in units of Rs.100/-, Rs.500/-, Rs.1000/-, Rs.5000/- or Rs.10,000/-.

Don’t worry if you can’t continue…

If you care about early en-cashment of your certificates then even then you are take care off. If you surrender:

  1. Before 1 year: Only face value of the certificate will be provided.
  2. After 1 year and before 3 years: You would be paid with simple interest rate.

3. Senior Citizens Saving scheme:

Senior Citizen Saving schemes

If you are looking for MORE… then look no further than Senior citizen saving schemes. It is the product of Govt. of India which gives you guaranteed return @ 9.3%.

Don’t get yourself carried away by only seeing the lucrative interest rate. Though it may change from time to time but the interest earned is subject to Tax.

Since the scheme is primarily meant to take care of the saving needs of people above 60, thus people below this age limit won’t be eligible to buy.

If you have opted for voluntary retirement then exceptions are possible, just contact the service providers and you will be guided likewise.

This Scheme can be easily bought from any post office near you. For more convenience and guidance you can even contact your bank.

There are in total of 24 public sector banks that are designated to serve you on this scheme. You can even buy plan from ICICI bank as they are also authorized to sell. To buy from them click here. To read more on SCSS you can check out this report from Economic times, it’s very detailed and guides you on everything.

4. Fixed Deposit Schemes:

Fixed Deposit Saving Schemes

Want to maintain the greatest level of safety then park your money in FD’s without any delay.

Your FD will remain with you all the time as they are considered to be the most convenient option. To maintain an FD you don’t need to open a separate bank account as your existing account will just be fine.

FD’s not only help you reap interest out of your money parked but also develop a habit to save.

The best thing about them is that they are very much goal oriented. You deposit your money in fixed deposit account to meet your immediate or future needs.

Though FD’s are known to be the best long term financial instruments but you would be surprised to know that it can take care of your short term goals as well.

You can fix deposit your money for as short as 7 days and can have more interest than your savings account. This is something that not many people know and this flexibility makes FD’s sound more affordable.

Fixed Deposit Schemes are probably one of the most popular proposals you can have. They have been into existence for long and are considered safer than their counter parts. The reason being, FD’s are insured by Deposit insurance and Credit Guarantee Corporation which is a subsidiary to RBI. Thus, no matter what, you are sure to get your money.

5. Reverse Mortgage:

Reverse Mortgage

You can exercise this option when you have no money.

It’s a special type of scheme meant of older class where they put their house as collateral with the bank in return of a monthly pay.

This sounds to be a lucrative option for someone with no money in hand but still want it to live.

So how this really works…?

You enter into an agreement with the bank to have monthly income putting your house as collateral.

Bank then technically becomes the owner of the house but you continue your stay till you live.

Though by choosing reverse mortgage you put your house at stake but this way not only you make your living but also give your heir a chance to buy the property back. If they will have the resources then they will re-own the house otherwise it will be open for sale to the general public.

Having no money while you live, is a curse.


Secure yourself as soon as possible if you want to live by your own and take the advantage of one of the investment options provided.