Investment Options For Senior Citizens, What To Consider?

As senior citizen you may avail several benefits when you plan to park your life’s earnings into a profitable investment plan. But before you do that go through the list of 5 important things to consider before making your choice.

Benefit of Saving
Especially tax benefits must be considered while choosing a good saving scheme for senior citizens. For instance, profit made in fixed deposit through interest income is tax-free up to Rs. 10,000. And, you can submit Form 15G and Form 15H to your lender to save tax for income up to Rs. 10,000 or above. There are 2 type FD long-term & short term.

When we need to choose between long-term FD and short-term FD, it is important to understand deeply into their basic differences.

Opening Multiple Accounts

Instead of making profit from a single investment plan senior citizens can open multiple accounts to accumulate wealth and grow their corpus. This is possible in fixed deposit. Besides, the deposit is easy to maintain as it does not require regular monitoring.

Higher ROI

An investment such as fixed deposit can help the investor start earning with a starting interest rate of 8.40%. As a senior citizen the investor can earn a top-up rate of 0.35% on the base rate.

Flexible Tenure

Investing for a flexible tenure is beneficial as it gives the benefit to break the investment in times of need. For e.g., in a fixed deposit investor can choose between a cumulative and non-cumulative plan. In cumulative, interest can be availed at the time of maturity while non-cumulative pays interest at monthly, quarterly, half yearly and annual intervals.

Hassle-Free Investment

If you consider investing in a fixed deposit you may be sure of putting money into a low-risk, hassle-free, high-return investment.

Read more at: Choosing Investment Options For Senior Citizens? Here Are Some Points You Must Consider