Best Ways to Invest for Senior Citizens

There’s no right or wrong time to invest. May it be at the age of 15 or 60, it is always good to make sure you are financially secure. Having this kind of sense of security at any age, most especially in your later years, can ultimately help improve your overall way of living. As a senior citizen, investing during these golden years of your life can be beneficial as you may still be able to enjoy the best luxuries that life can offer.

The only challenge here is choosing an investment scheme that would not only promise you stability but also one that could give you high return values. If you are already a senior citizen and are after financial security, the first best thing to do is look at possible options – ones that are risk-free and worth the investment.

Investment schemes nowadays are very promising as they offer great stability. However, not all ensure a low to medium range level of risk in investment. It is important to choose a scheme that would not run you the risk of losing out on your capital.

Here is a quick guide for some of the best investment options for senior citizens today:

1. Senior Citizen Fixed Deposits

The interest rates here are higher if you are already a senior citizen in comparison to the regular rates. You may opt to deposit within a flexible time period. This may range from 12 months to 60 months wherein you are able to pick depending on your necessity.

Your savings can grow in bigger values. In terms of liquidity, the scheme is highly recommended since you may withdraw your fixed deposit anytime during the given time period. This scheme assures a fixed return value, thereby making it safe.

There is also an option for senior citizens to avail of a non-cumulative payout period. They have the option to get their money back within a time period of their choosing may it be monthly or bi-annual.

2. Senior Citizen’s Savings Scheme (SCSS)

This scheme can be availed of by anyone once they hit the age of 58 years old and above via a post office or bank. Senior citizens can start applying for the program once they have already received one month of their retirement funds.

This scheme has a tenure of five years. However, senior citizens have the option of extending the investment for another three years. Currently, this scheme offers the highest post-returns. It has an annual interest rate of 8.6% and offers the security of investment to senior citizen investors.

Availing the scheme is an easy task as it does not involve a lot of paperwork. The process is pretty much straightforward. All you need is to fill out the given forms and submit your personal documents.

3. Post Office Monthly Income Scheme (POMIS)

The POMIS investment scheme has a five-year tenureship which allows investors to deposit a maximum cap of Rs 9 lakh for joint ownership and Rs 4.5 lakh for single ownership.

Senior citizens may pay annually, and its current interest rate is high with a value of 7.8% per anum. The investment in this scheme is not eligible for any tax benefit and the interest is taxable.

You may also credit your investment to your savings account of the same post office without needing to go to the post office every month. Alternatively, you have the option of transferring your interest from your savings account to a recurring deposit at the same post office.

4. Tax-Free Bonds

These bonds are started primarily by the government wherein most institutions are the safest. These bonds are unlike other schemes, as tenureship for tax-free bonds matures after ten, fifteen, or twenty years. Thus, this scheme is for investors who are sure that they would not be needing the funds for a long period of time.

No tax is deducted under this scheme, and the interest rate can get as high up as 7.3% to 7.5% per anum and the maximum amount invested can be up to Rs.10 lakh.


There are a lot of available options on the market for senior citizens. It is good to be equipped with the right knowledge before choosing a scheme that would best fit your needs. Look for ways to counter environmental factors in order to make sure that the risks you are taking are worth it in the long run.