Investing isn’t restricted to age. Even a child can invest. Even a young individual can invest. A senior citizen too can invest! Many financial benefits are offered to individuals upon crossing the age of 60, including higher returns on investments and greater tax exceptions. As one age, his/her financial objectives return expectations and risk appetite changes.
We need to have a look at what fits the portfolio of a senior citizen the best. Moneymindz, India’s First Free Online Financial Advisory
1. Fixed deposit scheme for senior citizens
Investment tenures for senior citizens extend from a week to a decade, with the rate of interest varying as per the tenure. Senior citizens enjoy interest rates of around 0.25% to 0.5% higher than regular rates. Senior citizens can also avail tax exception of up to Rs 50,000 in interest income from investments like Bank Fixed Deposits, Post Office Savings Schemes, etc. This exemption under Section 80 TTB isn’t accessible to individuals below the age of 60. Five years FDs are eligible for tax deduction under Section 80 (C). Get Personalized Advice On Fixed Deposit From Kuber Mindz or Give A Miss Call On 022-62116588
2. High-interest savings account
A low-risk investment instrument which guarantees high liquidity is a high-interest savings account. The rampant interest rates range from 5% to 7% per annum on these savings accounts. This interest is calculated on the daily balance so that the investor can earn interest even if you deposit one day and withdraw it two days later. Under Section 80 TTA, there are deduction benefits for the interest you earn up to Rs 10,000 in one financial year.
3. Senior Citizen Savings Scheme
Senior Citizen Savings Scheme is for senior citizens only. A notable, guaranteed rate of interest of 8.3% is offered. This is backed by the Government of India, thus making it safer. It’s a five-year deposit plan with banks and post offices and can be prolonged for another three years. Under this scheme, you can invest up to Rs 15 Lakh and avail tax deduction up to Rs 1.5 Lakh as per Section 80 (C). Moneymindz, India’s First Free On call Financial Advisory
4. Health Insurance
Health Insurance is mandatory for every individual regardless of age, gender, health state, etc. At a time you are receiving medical treatment in a hospital, financial support will be provided by the insurance company. Healthcare costs are rising. Inflation is on the rise too. Life expectancy has increased with the availability of medical treatment. But the cost of treatment and medicine is increasing. Hence, you ought to have Medical Insurance. Get Personalized Advice On Health Insurance From Kuber Mindz or Give A Miss Call On 022-62116588
5. Short term, debt funds, and balanced funds
Equity funds are moderately risky. You have many low-risk mutual funds. All these would suit the needs of senior citizens. Income flow and risk appetite always play a major role in investing, but a recommendation would be to invest in liquid funds and short-term debt funds.
These are some ways for a senior citizen to invest his/her money well. We have more suggestions. For more information visit www.moneymindz.com or give a missed call to 022-62116588