Senior Citizen Deposit Schemes

There are many schemes available for investment and reaping benefits for senior citizens. The government of India has given many schemes that very beneficial for senior citizens. As a person attains the age considered to be enough for being a senior citizen, his/her source of income comes to an end as they get retired from their jobs. In such a case it becomes very difficult for them to fulfill their basic, medical and other kinds of needs. Here steps in such relevant schemes that gives great benefits to the senior citizens. The most important and benefiting schemes for the senior citizens are:

  1. Senior Citizens Savings Scheme
  2. Monthly Income Scheme

Senior Citizens Savings Scheme

  • This is a great avenue for investment and return for Senior Citizens.
  • An account under this scheme can be opened in a post office by an individual who has attained the age of 60 years or above on the date of opening an account. In special cases like voluntary retirement or special voluntary retirement the age is reduced to a minimum of 55 years. For retired personnel from defence there is no age limit.
  • The account can be individual or joint with spouse.
  • The depositing amount must be in the multiples of INR 1000 subject to a maximum of INR 15 lac.
  • NRIs and HUFs are not eligible to open such an account.
  • The withdrawal locking period is five years from the date of opening of the account however premature closure of the account is permissible.
  • Interest of 9 percent is given every quarter. Nomination of an individual is also allowed under this scheme.

Senior Citizens Monthly Income Scheme

  • This is a very secure and safe scheme for investment for senior citizens. This scheme is best suited for retired senior citizens.
  • Such an account can be opened in the nearest post office.
  • The rate of interest given under this scheme is 8 percent.
  • The maturity period arrives after six years of starting with this scheme.
  • Five percent bonus is given too at the time of maturity.
  • For a single account the minimum investment allowed is INR 1500 and a maximum of INR 4.5 lac. For a joint account the minimum investment remains the same as INR 1500 but the maximum limit goes to INR 9 lac.
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