Senior citizens often want to invest their retirement money in such schemes which give good returns on their investment and also save tax (Senior Citizen Tax Saving). At this threshold of age, they also do not want a long lock-in period. In such a situation, we are telling you about some schemes which are especially for senior citizens. Let us know about them in detail
Senior citizens: Senior citizens usually get a substantial lump sum amount after retirement. In such a situation, they look for such options which will give a good option on their investment. Also, get tax savings also. But, at this age threshold they also do not want to go for long term schemes.
In such a situation, we are telling about some schemes for senior citizens, which along with giving good returns, also save tax (Senior Citizen Tax Saving) and in these, the lock-in period is also not long.
Senior Citizen Saving Scheme (SCSS)
This is considered to be the best investment scheme for senior citizens. Currently it offers 8.2 percent interest and the government has not made any changes in it for the next quarter also. Tax exemption under 80C can be availed on investment of Rs 1.50 lakh. The investment limit is Rs 30 lakh. Your investment matures in five years, which you can extend for another 3 years.
Equity Linked Savings Scheme (ELSS)
The good thing about this scheme of mutual fund is that the investment in it remains locked for only 3 years. Tax exemption under 80C is also available on annual investment up to Rs 1.5 lakh. However, ELSS schemes also come with risks. Mutual funds invest the money of this scheme in the stock market. In such a situation, the returns depend on the fluctuations of the stock market. If there is a big fall in the market, there can be loss.
Tax Saving Fixed Deposit (TSFD)
All banks have tax saving fixed deposit schemes. This is considered a very safe investment and in this also tax exemption is available on investment of Rs 1.5 lakh annually. If we talk about interest rate, it completely depends on the banks and the period of investment. Most banks offer different interest rates to their customers. Senior citizens generally get higher interest rates on TSFD than ordinary customers.
National Savings Certificate (NSC)
Senior citizens can also save tax through this scheme. The interest rate on National Savings Certificate is currently 7.7 percent. In this, the lock-in period is of five years, that is, if you close the account after five years, you will get only the invested amount and not the interest money. In this also, tax exemption can be availed on annual investment up to Rs 1.5 lakh.
