If you wish to gift your parents something they are worthy of, gift them financial independence and security when they need it the most. Imagine how they worked for their entire life to provide comfort to the family and the best education for their children. Now, it's your turn to ensure that they spend their retired life with ease and in peace without worrying about financial matters. Trust us when we say, it would mean a lot to them. And to begin with, gift them an investment scheme that would give them regular income, enough to take care of monthly expenses. There are several schemes that give more benefits like buy palantir shares and a higher rate of interest for senior citizens. Let’s take a look:
Fixed Deposit (FD)
Fixed deposit is one of the most convenient options when it comes to investment schemes for senior citizens. These days various banks and non-banking financial companies provide fixed deposits at a competitive rate of interest. Hence, you can compare the rates, and choose a financer that provides a higher rate of interest for senior citizen and other additional benefits. You can begin with a nominal amount of Rs.25000 for a tenor that suits you up to 10 years. The doorstep service or online account management offered by many companies too, add to the convenience of the investor. Investing in fixed deposit for senior citizens means:- Financial stability and security
- Minimum risk and flexible tenor
- High rates of interest
- Quick returns with great flexibility
Mutual Funds (MF)
Although this scheme is for the ones ready to take risks, it can be a great investment plan to invest a lump sum amount and gain high returns. To invest money in mutual funds, you need to have some idea about how to deal with equity and the stock market. Retired people or senior citizens can adopt a SIP approach if they want to earn good returns out of a small investment. It is also important to know that these are highly affected by the turfs and crests in the stock market so any set back in the market can affect your investment. However, once you have the knack of handling money here, you can earn great returns.- Reduced transaction cost
- Diversified portfolio
- Higher returns
- No fixed tenor
National Saving Certificate (NSC)
If you are planning to invest in NSC for your parents, you can do start early and invest a recurring amount on a monthly basis to let it grow over a period of time. It is a fixed income investment scheme that you can open with any post office. Initiated by Government of India, NSC is a savings bond that encourages subscribers mainly small to mid-income investors to invest while saving on income tax Investing as minimum amount as Rs.100 or more does not even cause a burden in your monthly expenses. You can withdraw the amount after a stipulated period and invest in another scheme with a higher rate of interest such as a fixed deposit.- Initiated by Government of India
- Minimum investment
- Low risk
- Tax benefits
Public Provident Fund (PPF)
PF is considered to be saving cum tax-saving scheme in India. It is a long term saving scheme, which offers attractive rates of interest. You can invest anywhere up to Rs. 500 to Rs.1,50,000 in a year. Moreover, there are several additional benefits like you can avail loan against PPF between 3rd to 6th financial years of PPF. Also, you can partially withdraw the amount from 7th year onwards. However, if you are planning to invest in this scheme, you need to begin early as there is a lock-in period of 15 years, and you will get the final fund only at the end of the tenor. Rest assured, the amount that you receive at the time of maturity is fully exempted from the tax according to Section 80C of The Income Tax Act.- Minimum investment
- No risk involved
- Facilities like a loan and partial withdrawal
