You've spent your whole life putting in a lot of effort, setting goals for yourself, achieving those goals, and working for your aspirations. After the race is over, there is an additional round of applause for the winner's lap. It is the one that reeks of eagerness the most. This new stage of life, which is commonly referred to as retirement, is an exciting transition.

You have a long list of further goals and aspirations, some of which include going on trips, starting your own business, and improving your overall health. If you choose properly from the many options that exist for senior citizens to invest money, you may be able to make your dreams come true.

What does it feel like to finally reach the golden years of your life, when you can finally relax and take it easy? It must be lovely to be in this wonderful period of life; but, it is also essential to find the finest investment possibilities in order to retain your financial security.

The ideal investment strategy for senior citizens will enable you to earn a consistent source of income and benefit from capital growth. Today, India offers senior individuals a variety of profitable investing alternatives. They are efficient and uncomplicated. To completely comprehend the applicable benefits of these and select the appropriate ones, take three simple starting steps: determine the amount to invest, the length for which it will be invested, and the eventual return.

Let's look at some of the investment avenues available for senior citizens:

Senior Citizen FD

Fixed deposits for seniors are a traditional way to invest. Most people choose to invest in bank fixed deposits because they offer a fixed return. These are considered low-risk investments because you know you'll get your money back. The interest rates for FDs range from 3% to 7%. Also, banks give senior citizens a better rate of interest on their FDs. Seniors can get up to 0.5% more interest on their fixed deposits than younger people. A bank FD calculator can be used to figure out how much money a person could make by investing in bank fixed deposits.

Senior citizens can choose how often the interest is paid. They can choose to get interest payments every month or at the end of the loan term. For regular interest payments, they can choose between monthly, quarterly, half-yearly, or annual payments. Under section 80C of the Income Tax Act of 1961, you can get a tax break if you invest in tax-saving FDs. When investors file their income tax returns, they can get a tax break of INR 1,50,000.

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

The Pradhan Mantri Vaya Yojna, or PMVVY, is a government-sponsored social security scheme for pension and retirement plans. While you may refer to it as an investment amount, the scheme refers to it as a "Purchasing Price." This scheme, like any other, guarantees the rate of interest in return, which can be paid monthly, quarterly, semi-annually, or annually. The interest rate is 7.40% per year. This scheme is run by the LIC - Life Insurance Corporation.

In terms of the account holder's eligibility, he or she must be at least 60 years old and a resident of India. While there are no restrictions on an individual's maximum years of age. If you participate in this plan, you must do so for a minimum of ten years. The purchase amount must be paid in whole at one time. So the least purchase price is Rs 1,62,162 for a monthly pension of Rs 1000, and the maximum purchase price is up to Rs 15,00,000 for a monthly pension of Rs 9,250.

Senior Citizens Savings Scheme (SCSS)

The scheme is also called SCSS, which is an instrument with a fixed income. People over the age of 60 can invest in this scheme with as little as Rs 1,000 and as much as Rs 15,00,000 over a period of 5 years at an annual interest rate of up to 7.6%. It was started so that when people reach retirement age, they can get a fixed, regular income. At the moment, everyone can use this scheme because banks and post offices have made it available.

The scheme is interesting because it is backed by the government and the returns are guaranteed and paid every three months. Those between the ages of 55 and 60 who have chosen the Voluntary Retirement Scheme are also eligible to invest in this program. After the account has reached its maturity, the account holder has the option to extend it for a further three years.

Post Office Monthly Income Scheme (POMIS)

Post Office Monthly Income Scheme is made available by India Post or the Department of Post (DoP) (POMIS). The Indian government supports this savings plan. POMIS is a low-risk investment alternative that provides monthly interest payments to depositors. Interest rates are updated every quarter, and the rate for the quarter of January to March 2021 was 6.60 percent. The program has a five-year commitment period. At maturity, the depositor has the option to either withdraw or reinvest the funds.

The minimum deposit amount is INR 1,500, while the maximum limit per individual is INR 4,50,000. However, the maximum limit for a combined account is INR 9,00,000. Additionally, the POMIS account is transferrable between post offices. In addition, early withdrawals are permitted one year after account opening. However, early withdrawals are subject to a penalty.

Tax-Free Bond

Government infrastructure firms like NTPC Limited, Housing and Development Corporation, NHAI, and Indian Railways Finance Corporation issue tax-free bonds. The bond has a term greater than ten years. Additionally, there is a lock-in period until the investment matures. These bonds' interest rates range from 5.5 to 6.5 percent. The annual interest payment from the bond issuer is tax-free in its entirety.

Given that the government is behind the programs, tax-free bonds are low-risk investments. Therefore, the likelihood of default is negligible. The program also guarantees regular income in the form of interest payments and offers capital protection. As a result, it is the best investment choice for retirees.

Investors can still sell the bonds on the stock exchange even though there is a lock-in period. Bond returns are based on the bond's purchase price because they trade in low volumes. Gains from the sale of bonds are taxed under Section 112. Gains from the sale of the bond before its one-year term are subject to the investor's income tax rate bracket. Let's say the bond is sold a year later, the long-term capital gains in that situation will be subject to a 10% without indexation benefit and a 20% with indexation benefit tax.

To conclude, Senior citizens in India should pick the best investment options as per their needs. With the help of financial experts like Bondskart, Senior Citizen Investors can make decisions on where and how to invest based on their requirements.