RBI bonds top choice for the elderly

SENIOR CITIZENS SAVINGS SCHEME IS ANOTHER OPTION

- SAIKAT NEOGI

WITH BANKS REDUCING their fixed deposit rates, senior citizens should consider high-yielding investment options such as RBI Floating Rate Savings Bonds and Senior Citizens' Savings Scheme.

They can consider fixed deposits with some private sector banks and small finance banks (SFB) that offer yields of 8% and above.

Depositors seeking maximum possible capital protection for their fixed income investments can spread their fixed deposits across multiple banks offering high yields (See graphic). They should look at a longer tenure to earn higher interest income as interest rates fall.

Here are three secure and moderately high-yielding investment options for senior citizens.

Senior Citizen Savings Scheme (SCSS)

They can lock into the Senior Citizen Savings Scheme (SCSS), which offers 8.2%, paid quarterly.

An individual of 60 years or more can open the account. Also, those above 55 years but below 60 years who have retired on superannuation or under VRS can open an account.