The savings scheme is one of the basic needs which requires you to think of saving the money from your earnings. A savings scheme is the same as holding an account in a bank where you can save all your money on it. The use of this is to provide security to the money and even give interest rates depending upon how much you are putting the money when it comes to saving schemes for senior citizens. So, there are many savings scheme which is offered by the government, banks, and financial companies for people to plan on their finance. Below are the best savings options for senior citizens.
National Savings Certificate
The national savings certificate is the fixed income savings plan where you can open with any post office in India. This plan was initiated by the government of India and will encourage those who fail under or mid-income categories to invest while saving on income tax. National Savings Certificate is primarily used by people for small to medium investments and for tax savings purposes.
Senior Citizen Savings Scheme
This plan will offer its investor safety, regular income, and a good method for tax savings investment plan. During the time of retirement, Individuals are very hesitant to invest money in equities since they prove to be risky. So, this kind of scheme comes with an extended maturity period which doesn’t offer income regularly. Also, this scheme is available in post offices and certified banks across India. This plan is ideal for saving schemes for senior citizens.
This scheme is offered by banks and the plan can be used for people who can regularly deposit money and wants a huge return at the time of maturity. So, Individuals can choose the term period and also the amount of a number of monthly deposits which they make according to their convenience.
Public Provident Fund
The national Savings Institute was introduced by the Public Provident fund in the year 1968. As per the government-backed savings scheme, it is the safest and most popular savings option in India. The contribution made towards the PPF account is applicable for tax deduction under section 80C of the Income Tax act.
Pradhan Mantri Vaya Vandana Scheme
This is one of the most popular senior citizen pension schemes in India which are designed for senior citizens above 60 years of age. The policy term of this prime minister’s senior citizen scheme extends to ten years. So, the pensioner can choose the frequency of the payment like monthly/quarterly/half-yearly/ annually. Senior members can earn an interest of 8% per annum over this scheme.
There are few other schemes in India where individuals can use the saving schemes for senior citizens after their retirement. However, the above schemes can be a good plan to finance the money in it and get a better amount of money in returns. Hope that I have covered all the topics in my article about the best savings options for senior citizens.