InvestorQ : Which is the safest scheme for the senior citizen in this COVID-19 pandemic?
tanvi Patel made post

Which is the safest scheme for the senior citizen in this COVID-19 pandemic?

Ira Shah answered.
2 years ago
This pandemic has worst hit the economy due to which all we have is a low-interest-rate environment. Interest rates are shedding rapidly and leaving investors wondering whether or not to choose a particular option. A senior citizen is someone who needs an investment option that could provide him with fixed income, have less or no risk and emergency exit is easy.

Now, if you see fixed deposits is the first choice of many investors because it fulfills the requirements of senior citizens. However, due to pandemic the rates on fixed deposits have fallen sharply and have settled below 6% for most 0f the banks, therefore, senior citizens need an investment option that could provide better returns and have minimum risk. There’s one such option available called Senior Citizen Savings Scheme.

Senior Citizens Saving Scheme:

It is a government-sponsored savings scheme tailor-made for senior citizens. It carries minimum risk as it is backed by the government of India and there is no risk of capital loss. One can apply for this scheme from Post Offices, Public and Private Banks. The best part is that even during the pandemic, it is offering an interest rate of 7.4% which shall be paid and revised quarterly, depending upon the economic conditions.

The maturity period of this scheme shall be 5 to 8 years. One can withdraw from the account prematurely only after completion of 1 year of the scheme. Investments under SCSS are also eligible for tax deduction under section 80C. One can make an investment under the scheme for as low as Rs 1000 and up to Rs 15 lakhs. This option is better than other available options considering all aspects of the scheme are in favor of senior citizens.