Senior Citizens’ Investment Scheme With Low Risk and High Returns 

A senior citizen needs more money to survive well than a young professional with many years left for retirement. As you cross the golden landmark of 60, the cost of everyday essentials, family responsibilities, and medical expenses soar. Nothing but a robust investment plan can guarantee the prolific lifestyle you have been accustomed to. 

While senior citizens in India have several investment options, nothing beats the security and returns from a fixed deposit scheme. This blog lists why a fixed deposit scheme is the best investment option for a senior citizen and how you can get the highest fixed deposit interest rates

FD Provides High Returns

FD enables a senior citizen to earn higher than the highest fixed deposit interest rates. Mostfixed deposit schemes offer an additional interest rate of 0.25% for senior citizens. For example, while PNB Housing’s maximum rate is 6.70%, you can get an interest rate of up to 6.95%. When your investment corpus is massive, even a 0.25% extra interest every year can translate to thousands of rupees on maturity. Generally, corporate fixed deposit schemes provide the highest fixed deposit interest rates. 

The Investment Amount is Withdrawable Before Maturity   

Senior citizen investments mostly come with a lock-in period. Before investing in schemes like the Senior Citizen’s Saving Scheme (SCSS) or Pradhan Mantri Vaya Vandana Yojana (PMVVY), you need to know the premature withdrawal rules. In most cases, they come with a lock-in period of one year, before which you cannot withdraw the amount. In contrast, a fixed deposit schemedoes not have a lock-in period of more than three months, which means you can close the FD any time you require cash urgently. However, any premature exit comes at a cost, which you need to consider before placing a closure request.

Fixed Deposits are Safe and Secure

Fixed deposits with banks are insured up to INR 5 lakh. In contrast, a corporate FD, such as PNB Housing’s fixed deposit schemeundergo stringent assessment procedure and get ratings from credit rating agencies like CARE and CRISIL. When you invest in a corporate FD with CARE AA and CRISIL FAA+ rating, your investment is not only one hundred per cent secure, but you also receive the highest fixed deposit interest rates. 

No-Frills Account Opening, Renewal, and Maturity

Unlike investments in SCSS and PMVVY, which are subject to a maximum investment limit of INR 15 lakh, there is no upper ceiling to investments in fixed deposit schemes. You can invest any amount you want in a financial institution that gives the highest fixed deposit interest rates. Additionally, some financial institutions offer doorstep service, and you can invest in a fixed deposit schemewithout ever visiting the financial institution. Moreover, features, such as auto-renewal and auto-maturity, can save you from the hassles of visiting the financial institution at the time of maturity.


If you want to earn a fixed income every month from an investment schemethat is one hundred per cent liquid, a fixed depositis the best option. Fixed deposits are available in various shapes. You can choose between cumulative and non-cumulative modes. You can also invest in any duration between one year and ten years. Hence, as a senior citizen, you can get added convenience and safe income, year after year, with a fixed deposit.

RJ Frometa
Author: RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

Check Also

The Importance of Music in a Casino

Source: Casinos have existed since ancient times, and this multi-million dollar industry records the …

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.