Home Finance A Guide To Safe Investment Options Post- Retirement

A Guide To Safe Investment Options Post- Retirement

Citizen Saving Scheme

As a senior citizen, one of the most important criteria for any investment is risk-free returns. It is advisable to have a portion of your portfolio dedicated to safe investment options which not only ensure steady growth but also provide cushion to other market-linked investments in your portfolio.

How would you define a safe investment as an investor? It is an investment where you could be assured of the safety of your funds and guaranteed returns. Fixed deposit is one such investment which fulfills all the conditions to qualify as a safe investment. The returns from FD, after revision by the Reserve Bank of India in the last quarter of 2018, have increased than before.

Other investment options that are an ideal fit for senior citizens include, PPF, SCSS, and other savings schemes. Let’s see how all these options stack against each other and which of these best suits the investment portfolio of a senior citizen.


The time period of Public Provident Fund (PPF) and Employee Provident Fund(EPF) is limited. It ends after a certain period of time. PPF gets mature after 15 years whereas EPF remains until the life of service. Also, fixed lock-in periods imply less flexibility to access funds and less liquidity.


For retired citizens, Senior Citizen Saving Scheme (SCSS) is an option as it offers 8.7% interest along with tax benefit under Section 80C. However, the interest earned is fully taxable as income. Also, you cannot invest more than INR 15 lakhs in this scheme.

Fixed Deposit:

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FD be it with a bank, or NBFC is very safe and profitable. The interest rate provided is one of the highest in fixed income instruments. The best part is, FD interest rates for senior citizen fixed deposits are higher than regular FD interest rates.

As a senior citizen, you can also take the advantages mentioned under Section 80C for tax saving in case you do not have any home loan liability and EPF. Under it, you will be granted a deduction up to ₹1.5 lakhs. So, as a rational citizen, you must opt from these safe investment options. Additionally, under Section TTB, senior citizens can get additional deductions of Rs 50,000.

Choosing the best FD interest rates

Keeping the safety criteria in mind, go for the top-notch instrument available with high interest rates as well. Company FDs beat bank FDs in the interest rate criteria as they always offer 1-2% higher rates. Among these always look for the highest rating (AAA and FAAA) as given by agencies like CRISIL and ICRA.

Why should senior citizens choose Bajaj Finance Fixed Deposits?

  • Highest safety standards – Smart financial planning requires that people see ratings before making any investment decision. Bajaj Finance stands out in this regard. Due to the safety policies provided by Bajaj Finance for senior citizens, it has been awarded CRISIL’s FAAA (stable) and ICRA’s MAAA (stable) rating.
  • High interest rates – Bajaj Finance is a great option, especially for senior citizens. Many provisions are made for them keeping in mind the comfort, safety, and benefits of the senior citizens. There is a special privilege for retired customers. They get a benefit of an additional 0.35% interest in addition to the existing rate of 8.75%.
  • Interest payouts – The flexibility provided by Bajaj Finance is also very favorable. You can choose any payout period, quarterly, half-yearly or yearly.
  • Loan against FD – One important and interesting feature is the Loan Benefit. With one investment, you can avail two offers. The FD returns are yours whereas you will be to avail 75% loan against your principal amount fixed in fixed deposit.
  • Cumulative and non-cumulative options- You get both the options, cumulative as well as non-cumulative FDs. Therefore, you can easily meet your requirement for a regular monthly income or for building a substantial corpus.
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Senior citizens can be assured of the highest paying and safest investment option with Bajaj Finance Fixed Deposit. With a tenor ranging between 12 to 60 months, senior citizens can plan their finances easily by laddering multiple FDs for a continuous stream of steady income.

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