Top 5 Investment Options Recommended for Senior Citizens

Posted in Investment Tips By Sajhyadri Chattopadhyay -
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Ever wondered how you can make your golden years financially golden? Senior citizens, your financial adventure awaits! Here's a step-by-step walkthrough of the various features, benefits, and USPs of five investment schemes that you should look at with a keener eye. Ready? Let's embark on a financial journey that ensures your peace of mind and a comfortable retirement! Dive into the details, weigh your options, and make informed choices for a tension-free and independent life. 

Senior Citizens Savings Scheme (SCSS)

SCSS is a government-backed savings scheme specifically designed for senior citizens, offering a fixed interest rate and guaranteed returns.

Key Features:

  • Tenure of 5 years, extendable by 3 years.

  • Quarterly interest payouts.

  • Higher interest rates compared to regular FDs.


  • Safe investment with sovereign backing.

  • Regular income through interest payouts.

  • Ideal for those seeking income post-retirement.


  • Limited liquidity with premature withdrawal penalties.

  • Restricted to individuals aged 60 and above. 

USP: Ideal for senior citizens looking for a secure and steady income stream. 

The SCSS interest rates are revised every quarter, with the current interest rate being 8.0%. This interest rate is applicable from January till March. However, these quarterly revisions do not apply to existing investors. The minimum investment in SCSS is ₹1,000, while the maximum is ₹15 Lakhs, and you can invest individually or jointly. 

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

PMVVY is a pension scheme for senior citizens, providing a guaranteed pension with the option of monthly, quarterly, half-yearly, or yearly payouts.

Key Features:

  • Tenure of 10 years.

  • Regular pension payments.

  • Minimum investment and maximum pension limits.


  • Regular pension income for financial security.

  • Return of the purchase price on maturity or death.

  • No market risks are associated.


  • Limited liquidity with premature exit penalties.

  • Applicable for individuals aged 60 and above.

USP: Ideal for seniors seeking a pension for financial independence. 

This investment scheme for senior citizens also offers loans against the amount invested after completing three years of investment. You can choose multiple pension payout options like monthly, quarterly, half-yearly, or annually. During unforeseen circumstances, you can foreclose the account. In such cases, you can get 98% of your initial contribution. 

Fixed Deposits for Senior Citizens

Basic Definition: Senior citizens can opt for special FD schemes with higher interest rates offered by various banks, providing a secure and predictable investment avenue.

Key Features:

  • Higher interest rates for senior citizens.

  • Flexible tenure options.

  • Assured returns and safety of the principal amount.


  • Regular interest income for financial needs.

  • Capital preservation with fixed returns.

  • Various tenure choices based on financial goals.


  • Interest income is taxable.

  • Premature withdrawal may incur penalties.

USP: Ideal for senior citizens seeking the safety of FDs with higher returns. 

Senior citizens receive an additional benefit of 0.25-0.50% over the current FD interest rates provided to regular investors. For instance, on Bajaj Markets, you can get interest rates of up to 8.75% p.a. for senior citizens. You can use an online fixed deposit interest rates calculator to get an idea about the returns that you will receive. 

Post Office Monthly Income Scheme (POMIS)

POMIS is a government-backed savings scheme offered by India Post, allowing investors to deposit a lump sum amount and receive a fixed monthly income.

Key Features:

  • Fixed investment amount with a tenure of 5 years.

  • Monthly interest payouts that provide a regular income stream.

  • Backed by the Government of India, ensuring safety.


  • Stable and predictable monthly income.

  • No market risks associated.

  • Suitable for individuals seeking regular returns.


  • Interest income is taxable.

  • Limited liquidity, with premature withdrawals incurring penalties.

Interest Rate: 

  • For the December-ending quarter of FY24, it was 7.4% per annum, payable monthly. 

  • The interest rate is subject to change periodically. 

USP: Ideal for investors seeking a low-risk, fixed-income investment option. 

The minimum investment amount required to open an account is ₹1500. The maximum investment is ₹4.5 Lakhs for a single account and ₹9 Lakhs for a joint account. Note that the maximum term of investment is 5 years. Additionally, you can transfer your POMIS account from one post office to another within India. 


Annuities are financial products where a lump sum amount is invested to generate a regular income stream, suitable for retirees.

Key Features:

  • Options for immediate or deferred annuities.

  • Regular payouts for a fixed period or lifetime.

  • Provides financial security and stability.


  • Steady income for retirement needs.

  • A choice between various annuity options.

  • Tailored to individual financial requirements. 


  • Irreversible commitment of the lump sum amount.

  • Payouts may not keep up with inflation. 

USP: Tailored annuity options for diverse retirement needs. 

There are two common examples of annuity plans - Pension annuity plans and Immediate annuity plans. A Pension annuity plan is a guaranteed plan that provides a fixed income throughout your lifetime. On the other hand, an Immediate annuity plan is a traditional plan that offers multiple options to choose from based on your requirements. 


As with any investment decision, it's crucial for senior citizens to align their choices with their financial goals, risk tolerance, and income needs during retirement. It's time to take charge—discover, invest wisely, and enjoy the fruits of your lifelong efforts! Start exploring your ideal investment avenue today with Bajaj Markets! From FDs to Government Bonds, explore multiple investment products on one platform and make an informed choice. Remember, your retirement, your rules! 

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