Best Tax-Saving Investment
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Whether you are a young working professional or just retired from the job, investment is always considered as one of the most fruitful financial decision of a lifetime. Especially if you are a retiree or a senior citizen, better financial planning is a must. Careful and meticulous planning not only saves senior citizens from facing financial woes but also help them to lead a happy and prosperous life after retirement.

So if you are a senior citizen and looking for some tax-saving investments, then read this blog:

National Savings Certificate  (NSC)  

A National Savings Certificate is a type of savings bond that helps senior citizens in redeeming income tax. One can easily buy these bonds from the nearest post office. The investment starts from a small amount and comes with a fixed maturity period of either 5 years or 10 years with an interest rate of 7.6% per annum. You can also redeem tax benefit under section 80 C of the IT Act.

Senior Citizens Saving Schemes (SCSS)

Focusing primarily on senior citizens, this scheme offers a regular income with highest tax saving benefits. It is a long-term saving investment option that can be easily availed through nationalized banks and other post offices. Citizen above 60 years or those who have taken Voluntary Retirement Scheme (VRS) from their existing jobs or retired defense personnel with a minimum age of 50 years is eligible to invest in this scheme. A maximum investment of 15 lakh can be done in this scheme with a return interest rate of 8.6 % per annum. The maturity tenure of the scheme is 5 years which can be extended to another 3 years as per the requirement.

Post Office Monthly Income Scheme (POMIS) 

This investment scheme is offered by Indian postal services along with a guaranteed return at an interest rate of 7.7% per annum. Another safe and reliable option for senior citizens, this scheme offers low-risk MIS  which generates stable income flow. One can start investing from as low as Rs 1500 per month as per their affordability. One can also open this account jointly may be spouse or children. Although, the maturity period is 5 years one can withdraw the amount early in case of any emergency.

Fixed Deposits (FD)

Last but not the list one of the most commonly used investment options which is favoured by both young professionals as well retirees is to open a fixed deposit (FD) in any of the banks that offer best return interest rates. Just like all the above saving schemes, FDs are also taxable under section 80 C of the IT Act. The maturity period of FDs varies from a minimum of 91 days to a maximum of 269 days. However, a tax saving FD has a lock-in period of 5 years and senior citizen can easily exempt paying tax if the maturity income is 50,000 or less than that.

Senior citizens can also interest in mutual funds but then they have a high-risk rate. So it’s better to look for safer and reliable investments.