Senior citizens investment instruments
Hi,
What are good instruments for senior citizens to invest in? At this age safety of the principal becomes of utmost importance. Here are some that I know of-
1. FD- Not beating inflation nowadays.
2. PPF/EPF- Good and must for everyone but at retirement or when someone is 60 or plus the extension is allowed for t+10 years only.
3. Senior Citizens Savings Scheme- A joke as interest is giving quarterly. No compounding benefit. Fully taxable. Though in first year claim till 1.5l can be made. Not good if one has option 2.
4. Pradhan Mantri Vaya Vandana Yojana and annuities- Linked with LIC/insurance. The real return is crap.
Sure no risk no return, but for a senior citizen is there any instrument which can give equal to or a little more than the inflation rate?
Thanks
@guest_999 @bikidas2060 @andromeda @caks2006407 @dharmanath481
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Info about all sarkari schemes is available online. Modi ne photo nahi lagvani saath?
Cooperative banks have these kinda schemes/higher interest rates about which there is no info online but no one knows whether they will be saved considering the ordinance was passed in June.
At present, nothing safe can give more than inflation rate. And a senior citizen should never take financial risk. Best option is Annuity for life of both spouse without return of capital.
This would give an idea of how much one can get
https://cra-nsdl.com/CRAOnline/aspQuot...ml
Aren’t these annuity plans crap both return wise and service wise(I mean one is told lies to sell these kinda plans usually)
No idea,
Captial safety ==> FD
Little risk OK ==>Aditya Birla Sun Life Savings Fund, HDFC Ultra Short Term and SBI Magnum Ultra Short Duration Fund or NPS Tier 2
Thanks.
Fd’s only in big banks provide real safety but return is poor.
The ytm of these debt funds is even less than the fd rates.
Difficult times.
For senior citizens, who are NOT getting sufficient pension income, should only opt for any pension type income (NPS or similar).
They should NOT invest in FD or MF or Rental income, if they have children who are suffering with financial problems (or chances of getting into financial issues in future).
What was decided finally??
My friend sent his parents some money from abroad. That money is a lot when converted to INR. His father asked me where can he invest. After getting replies from this thread, I told him that I am myself not sure lol
Diversification is my mantra during these times.
I opened accounts in IDFC savings account with 4.5L to get 7% interest
FD with DCB bank again 4.5L when it was giving ~7%
NSC giving 6.8% lockin for 5 years
So with above parents can invest around 15L each, so 30L sorted for short, medium and long term.
Above recommendations are simple and straightforward.
If there are more funds available then go for debt funds, annuity, etc which are a lil complicated interms of returns and options.
Debt funds ytm is less than 4%
Annuity too complex and the insurance part is meh.
NSC, lock in period.
You are right about fd’s of less than 5 lac in different small/risky banks. But again they are also not beating inflation. Plus one or more banks is fine more than that is just too much to handle for senior citizens.
go for arbitrage funds, they give 6% tax-free returns for long term
good for larger amounts
For 100% safety with better return than FD u can get it in
1) SCSS
2) Pradhan Mantri Vay Vandana Yojana
3) RBI bond (Floating rate is drawback here)
If u want to get more return then it can’t come with 100% risk free. For that u can think of Idfc bank, small finance bank or FD in some reputed NBFC like HDFC LTD., Bajaj Finance, Mahindra Finance
Sir option 1 and 2 are not beating inflation. Isn’t there a long lock in period for the last one?
Senior citizen savings scheme.. Its available in post offices
Retail inflation was under 5% for last few quarters before corona, after interest rates were reduced post corona, inflation jumped up.
There is no straight answer to your query, there is no instrumnent that can give guarantee of capital, plus it is short term or allows premature withdrawal, plus gives 7+ interest
That’s why i said choose the best from available options rather than rejecting every suggestions in this thread saying that it is not beating inflation or it needs constant monitoring or it is long term.
Not my money, not my decision. I can only convey the message. Thanks brother.
From which site do you check the historical data for inflation?
Senior citizen saving scheme maturity period is 5 years and not 15 years.
https://sbi.co.in/web/personal-banking/investme...
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Very difficult, you will have to visit some public sector banks(preferably smaller in size aka not sbi & pnb) & ask for some of their “exclusive senior citizen scheme” with good interest rate. Some public sector banks have this but they don’t advertise it & very few actually know/use it.