There are a number of investment options for senior citizens where they can save their money without being taxed. Many financial institutions offer a higher rate of interest for senior citizens for Fixed Deposits. This ensures that you get more returns for the amount invested.
- You can also check out Balanced Fund Scheme and those who are helping elderly parents with finances can also opt for Systematic Withdrawal Plan or SWP after 12 months of investment.
- One can withdraw 0.75% per month and the returns are going to be tax free as per the tax regulations. Senior citizens can expect the corpus to grow even after the withdrawal for a period of ten years.
- Some of the other investment options for senior citizens include PPF and EPF where deposits have to be made regularly and interest between 8.1-8.8% can be earned as well.
- These are the investments which can help you to save tax. To get tax benefits, invest part of the PPF proceeds into an annuity plan.
- There are senior citizens savings schemes available as well where you can deposit a maximum of Rs. 15 lakh for tenors of 5 years and this can be increased by another 3 years.
- Interest rates range between 8.5-9.5%. The investment is free from taxation although the interest is taxable.
How to Use the Money Return from Investment:
If you have invested your money with a plan how to use it after a time, it is well and good. But if you are new to investment and saving here are ways you can your return money from investment. You may Invest your money in Real Estate. Because you would have your money, you may get help in business finance with that money if start your own business venture. You may also lend your that money. You may spend it for personal expenditure and many more ideas are there which you can choose according to your preference and choice.