Post retirement, the primary concern of an individual would be a healthy investment portfolio. But that doesn’t mean the person should overlook the tax factor, which could erode the value of the ROI. Inflation is another barrier that erodes the value of their investment, which results in disturbing assured returns.
The following is a list of investment plans that will suit the senior citizens, giving them more profits while keeping taxes at bay!
Senior Citizen Savings Scheme: Senior citizens who are above the age of 60 are eligible to invest in this scheme, whereas those who are above 55 years can join in certain exceptional cases. The lower limit of this scheme is Rs. 1000 with the higher limit stretching to Rs. 15 lakhs. The interest rate is 9% and the tenure is 5 years.
Post Office Monthly Income Scheme: A guaranteed monthly income plan; the person can invest a minimum of Rs 1000 and maximum of Rs. 3 lakhs singly or Rs. 6 lakhs jointly in this scheme. The person earns an 8% interest on deposit and 10% bonus after the end of tenure, 6 years.
Post Office Time Deposit: The minimum amount to invest is Rs. 200, which yields an interest of about 6.25% to 7% and the tenure ranging from 1 to 5 years.
Fixed Deposits: Though it is one of the safest investment plans, it is advisable to opt for a FD that is provided by banks instead of company deposits. It’s recommended to choose deposits with AAA rating, since they are the safest among all the deposits.
Monthly Income Plans: This is a high risky investment plan and rightly so it gives high returns than all the other products. The dividends you get through this scheme are tax-free but you have to bear the market risk.