Some may think that this is a tough time for older adults living off their debt investments. However, the reality is that interest rates on traditional fixed income instruments have been increasing for some time now. It is providing senior citizens with lower-risk options of investment.
The senior citizens must divide their investments between long, medium, and short-term investments to reap the maximum benefits of not only the financial product by the growing interest rate scenario as well.
Let’s discuss these options.
Mid-Term and Short-Term Options
When it comes to mid- and short-term options, a Fixed Deposit works the best. Please note that there are numerous options for senior citizens within the FDs. They can look at fixed deposit schemes of both banking and non-banking institutions. A senior citizen can get fixed deposit interest rates ranging from 7.45% to 7.85% for 1-4-year tenures. On the other hand, some private sector institutions offer similar or even higher returns. However, it depends on tenure.
Long-Term Options
The best long-term options include SCSS and RBI bonds. In the present scenario, RBI bonds offer an interest of about 7.75%, which makes them an exciting choice. A Senior Citizens Savings Scheme (SCSS), on the other hand, gives an interest rate hovering around 7.4%.
It is essential to talk with your financial advisor
about the investments to make an informed decision.
Read More: All You Need to Know About FD & RD Which One is Good.
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