5 Best Investment for Senior Citizens in India for 2024


6 min read

Updated on Jan 05, 2024

Enjoy your golden age without any worry of stable income with these 5 best investment options for senior citizens in India. Read the blog to know more about the 5 best investment for senior citizens in detail.

Retirement is truly called the golden age because it’s that time of your life when you’re done working hard and wish to reap its benefits now. Travel, business, or simply enjoying the yield (savings) of your effort all these years – the choice is purely yours. And yes, there is the added advantage of earning a regular income post-retirement by way of investment schemes. The government of India has launched several investment options for senior citizens, which are provided by a number of insurance companies in the country.

This blog details the 5 investment options for senior citizens 2024 that can ensure stable and regular income for them even after retirement.

Various Investment Plan for Senior Citizens, Returns and Investment Amount

Below are the best investment plans for senior citizens in India 2023 with their return and investment amount – 

Investment Option Returns Investment Amount
Pradhan Mantri Vaya Vandana Yojana (PMVVY) 7.4% p.a. Min Rs. 1,50,000
Senior Citizen Fixed Deposits (FD) 3% – 7% p.a. Varies between banks
Senior Citizens Savings Scheme (SCSS) 7.6% p.a. Min Rs. 1,000
Post Office Monthly Income Scheme (POMIS) 6.60% p.a. Min Rs. 1,500
National Pension Plan 8% to 10% p.a. Rs 500 per month or Rs 1,000 p.a.
Tax-Free Bond 5.5%-6.5% p.a. NA
Mutual Funds 10% – 15% p.a Market Linked Rs.100

Senior Citizens Investment Plans and Eligibility Criteria 2024

1. Pradhan Mantri Vaya Vandana Yojana:

This is one of the best investment options for seniors in India that was launched in 2017 by Life Insurance Corporation (LIC) of India. The scheme also serves as a pension plan ensuring a fixed amount of income to the elderly after they have chosen to invest a lump sum amount in the scheme.

Eligibility criteria for Pradhan Mantri Vaya Vandana Yojana:

The scheme is exclusive to only senior citizens aged 60 years and more, with no maximum age limit. Also, it is valid only for citizens of India and not NRIs.

Validity of Pradhan Mantri Vaya Vandana Yojana:

Initially launched for 3 years, this plan has now been extended for 3 more years and will be valid up to March 31, 2023.

Also Read about Other Schemes: Pradhan Mantri Atmanirbhar Swasth Bharat Yojana | Pradhan Mantri Ayushman Bharat Yojana

2. Senior Citizen Fixed Deposits:

Fixed deposits have always been the most preferred form of investment options in India for a large number of people. The elderly of the country too find it a safe bet, considering that the interest payout can be chosen to be monthly, quarterly, half-yearly, or annual. The scheme is meant for senior citizens who are 60 years and above.

Eligibility criteria for Senior Citizen Fixed Deposits:

The Fixed Deposit Scheme for Senior Citizens is applicable to both Indian citizens and NRIs over 60 years old. Besides, some banks and financial institutions also permit people over 55 years old to apply for this scheme, provided they have opted for early voluntary retirement.

Amount to be invested:

Senior citizens can open a Fixed Deposit at a bank of their choice with a minimum investment of Rs. 5,000 (in case of online) and Rs. 10,000 (if opening an FD at a physical bank branch). The maximum limit for investment under this scheme varies from bank to bank, not exceeding Rs. 2 crore though.

Know More: 1 Crore FD Interest Per Month | 2 Crore FD Interest Per Month

3. Senior Citizen Savings Scheme:

Yet another of the best investment options in India for the elderly population, this scheme has been offered by the Indian government since 2004. It is also usually regarded as one among the safe investment options in India, owing to its backing by the central government. Hence, there is no risk involved in this investment plan and 100% income assured to the investor throughout the term of the plan.

Eligibility criteria for Senior Citizen Savings Scheme:

All senior citizens 60 years and over are eligible for the SCSS; however, not NRIs. Besides, those aged between 55 and 60 years of age can only apply if they have chosen VRS or are retired from the Indian defense forces.

Amount to be invested:

Minimum investment of Rs. 1,000 and maximum of Rs. 15 lakh

Plan term:

Maximum tenure of the scheme is 5 years, with the option for further extension of up to 3 years more. However, this can only be done one time.

Must Read: Senior Citizens Savings Scheme in India | LIC Senior Citizen Scheme

4. Post Office Monthly Income Scheme:

Yet another safe investment option with considerably lower risk involved for the elderly. This scheme is backed by the Finance Ministry and guarantees a fixed amount of interest to the senior citizens every month. This is why this scheme is highly preferred by the elderly citizens for the time post retirement.

Eligibility criteria for Post Office Monthly Income Scheme:

This scheme is slightly different from the others mentioned in this post because it is not exclusively meant for only senior citizens. Any person 10 years old and above stands eligible to opt for this plan. The application process is also fairly simple, which can be completed at a post office near you.

Amount to be invested:

The minimum amount required to open an account at the Post Office is only Rs 1,500, which makes it highly favorable among the rural population as well. The maximum limit for investment is Rs. 4.5 lakh.

Plan term:

The scheme demands an investment for at least 5 years.

Read More: Post Office Monthly Income Scheme | Post Office Recurring Deposit | Post Office Fixed Deposit Interest Rates 2023

5. National Pension Plan:

This scheme is open for all employees from the public and commercial sectors who can choose to invest in a pension account to enjoy its benefits post their retirement. The plan allows for withdrawal of a certain amount after retirement. The remainder is paid out as a pension every month.

Eligibility criteria for National Pension Plan:

The scheme was initially launched for only the employees of the central government; however, now all residents of India can apply for this plan.

Know More: Top Pension Plans in India | Guide to Retirement Pension Plans in India

Popular General Insurance Companies India, 2023

To Conclude

The retirement phase is one of relaxation but can also become a cause for worry, especially over the loss of stable income. Hence, the investment options detailed in this post can help senior citizens enjoy this stage without a hassle. One of the prime advantages of choosing these investment plans for retirement is that they offer fixed and assured returns to the investor throughout the term of the scheme. This allows the elderly to fulfill all their ambitions and aspirations post retirement without a worry. However, make sure to check the details of each plan before investing in it. The details of all these schemes are easily available online.

Also Read:

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FAQs: Best Investment Plan for Senior Citizens 2024

What are some best Investment for senior citizens in 2023 India?

There are various investment options available for senior citizens in India but here we are listing the top 5 investment plans 2023 for senior citizens -

#1. Pradhan Mantri Vaya Vandana Yojana
#2. Senior Citizen Fixed Deposits
#3. Senior Citizen Savings Scheme
#4. Post Office Monthly Income Scheme
#5. National Pension Plan

Who is eligible for senior citizen schemes (SCSS)?

A person between the age of 60 years to 80 years is considered a senior citizen and is eligible for senior citizen schemes (SCSS).

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Aug 23, 2022
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