If you are also searching for a similar scheme, we have some options to share with you. These plans can help you earn better returns even during your old age.
Let us discuss these excellent plans that not only offer good returns but also provide tax exemptions on your investments.
Senior Citizen Savings Scheme
The government has introduced a special scheme for individuals above 60 years of age called the Senior Citizen Savings Scheme. The main aim of this scheme is to provide regular income to senior citizens during their old age. The best part is that you can start investing in this scheme with just Rs 1000. If you wish, you can invest a maximum of Rs 15 lakh. The maturity period for this scheme is 5 years, and it offers an interest rate of 8 percent. Additionally, investments made in the Senior Citizen Savings Scheme can provide tax benefits of up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act.
Tax-Free Bonds
Senior citizens can also earn a good income by investing in tax-free bonds. These bonds are issued by government subsidiaries and offer a risk-free investment option. After a certain period, you will receive returns that are completely tax-free.
National Savings Certificate
Investing in the National Savings Certificate provides excellent benefits through compounding interest. This means that not only will you receive good returns on your investment, but you can also save on taxes. The interest rate for this scheme has been increased to 7 percent, making it a favorable investment option for senior citizens.
ELSS
ELSS, also known as the Tax Saving Mutual Fund Scheme, is an equity-based mutual fund. It invests 20 percent in debt and the remaining 80 percent in the stock market. Apart from providing good returns, it can also be an effective option for tax saving. You can save up to Rs 1.50 lakh in taxes under Section 80C of the Income Tax Department by investing in ELSS.
