Senior Citizens Saving Schemes

As a senior citizen, you should look for investment options that offer high returns and security for your invested capital. Fixed income instruments are risk-free but they do not provide returns sufficient enough to enjoy a good life post-retirement.

On the contrary, market-linked instruments do offer lucrative returns but their performance depends on the market conditions. By keeping all these things in mind, we have brought some of the best investment schemes for senior citizens in 2020:


SCSS i.e. Senior Citizen Savings Scheme is a small saving scheme provided by Post Offices and some select banks in India. The minimum deposit amount is Rs. 1000 and you can deposit up to Rs. 15 lakhs in SCSS. Its interest rate is revised every quarter but is usually a bit higher than regular savings schemes.

However, SCSS comes with a fixed tenor of 5 years and you can extend it for 3 more years after maturity. You can withdraw your deposits prematurely but the penalty charges will reduce your interest earnings to some extent.


Post Office Monthly Investment Scheme (POMIS) is another scheme offered by the Post Office of India. The best part about this scheme is that it provides a monthly interest payout that you can use to cover your monthly expenses.

The minimum deposit amount is Rs. 1500 but you can invest only up to Rs. 4.5 lakhs in POMIS. It comes with a lock-in period of 5 years and early withdrawals are allowed only after completion of 1 year.

Bank Deposits 

Banks FD plans usually provide slightly higher fixed deposit rates for senior citizens. Here, you will get flexibility in tenor and other features that are not provided by small savings schemes. 

However, since bank fixed deposit rates are currently low due to uncertain economic conditions, this additional interest rate benefit will hardly make much of a difference in returns.  

Corporate FDs 

Corporate FDs offer higher interest rates than bank FDs but for ensuring the security of deposits, you must invest in a corporate FD that has received high ratings for stability and safety. 

Bajaj Finance FD is a company FD that has received the highest ratings by credit rating organizations like CRISIL and ICRA for securing the capital of the depositors. Moreover, it also provides an FD interest rate of up to 6.85% that is much higher than bank FDs and most small savings schemes. 

An additional interest rate benefit of 0.25% is offered to senior citizens. This allows you to earn sufficient returns to secure your future. Also, monthly, quarterly, six-monthly, or yearly interest payouts can be used as a regular income source by investing in non-cumulative Bajaj Finance FD. In times of need, you can withdraw your deposits easily by paying a nominal penalty fee.

The provision of investing in an FD online by using an online FD form and cKYC process for document verification ensures that you take minimum effort for starting an FD.  

The minimum deposit account is just Rs. 25000. Also, non-seniors can get a 0.10% additional interest rate by choosing the option of online investment.

Systematic Deposit Plan 

If you are not interested in investing a bulk amount, then you can think of a  Systematic Deposit Plan from Bajaj Finance. In this scheme, you just have to deposit Rs. 5000 or more (as per your convenience) every month. The deposit count can range from 6 to 48 as per your financial obligations and each deposit will be considered to be a separate FD and will grow at the interest rate applicable on the date of deposit.

You can either choose one date on which all the deposits will mature or you can lock-in each deposit for a tenor of up to 60 months as per your convenience. SDP proves to be a useful instrument if you do not want to commit all your savings at once post-retirement.

As a senior citizen, you would like to secure your capital while earning higher interest gains. For that, you can invest in saving schemes like SCSS, POMIS, etc. However, their withdrawal policies are a bit strict and you will also end up paying a hefty penalty if you withdraw your deposits prematurely. As the bank FD rates in India have reduced this year, you can invest in a company FD like Bajaj Finance FD that provides a higher FD rate to senior citizens, easy withdrawal methods, and multiple interest payout options. If you are not keen on investing your entire savings at once then you can invest in its SDP to earn high returns by depositing a fixed amount every month.


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