| Most commonly known as the best option for | | | | citizen to be able to open the this deposit plan. If |
| senior citizens' finance needs, Senior Citizen | | | | you are not a resident of India or are just a |
| Deposit Plans act as secure funding for needs in | | | | person of Indian origin or come under the Hindu |
| the golden years of your life. After retirement or | | | | Undivided Families criteria, you are not allowed to |
| after official renouncement of business, the first | | | | book this plan. |
| concern is a source of income. One should start | | | | Funds generation - If you are between 55 |
| planning in advance to avoid being in an unwanted | | | | and 60 years of age, the funding has to come |
| situation and an ideal way is a Senior Citizen's | | | | from the retirement benefits money. But if you |
| Deposit Plans. These plans can be put to use only | | | | have crossed the age limit of 60 years, the |
| after 60 years of age. So, in case you haven't | | | | source of income does not really matter. In fact, |
| invested from the active years of employment, | | | | there is no restriction as to how you fund the |
| this is the prudent alternative. It helps you sort | | | | deposit. |
| your money needs in a systematic and organised | | | | Maturity - The senior citizen's deposit plan can |
| manner without any rush and hassles. | | | | be set to mature anywhere between 1 to 5 |
| There are some factors that you need to | | | | years. Also, pre-mature withdrawals are allowed, |
| consider before investing in senior citizen's deposit | | | | subject to certain rules and regulations. |
| plans: | | | | Rate of interest - Senior citizen deposit plans |
| Age requirements - It is of special importance | | | | have a preferential rate of interest. They are |
| to note that this deposit plans are available only | | | | generally at par with other deposits. Also, the |
| after the age of 60 years. In case one has | | | | interest payable is calculated and paid out every 3 |
| retired on superannuation or taken a voluntary | | | | months. |
| retirement scheme, they can invest, but the age | | | | Income Tax - Under section 80 C, the |
| limit needs to be at least 55 years. Retirement | | | | investment made is tax-free but the interest |
| from defence and army services calls for a | | | | earned is subject to taxes. |
| different set of rules again. There is no age limit | | | | Joint account - It can be opened with a joint |
| but certain extra conditions apply too. | | | | account holder who necessarily has to be the |
| Other restrictions - You have to be an Indian | | | | spouse. |