Every year, millions of people retire in India, and most of them ask the same question; where should I put my retirement money?  Most of the retirees are confused because they want to provide complete financial security to themselves and their families after retirement.

However, maintaining the balance between a diverse and risk-free investment portfolio is not a cakewalk. Let us see some of the best investment instruments for the retirees:

Senior Citizen Saving Scheme

Senior Citizen Saving Scheme is probably one of the most convenient types of investments for retirees as they can easily apply for it with a minimum set of documents. This saving scheme allows a retiree to invest as little as Rs. 500 and as high as Rs. 15 lakhs. Therefore, you can conveniently invest in this scheme according to your savings.

The interest rates are up to 9.10 percent, and it is a secure investment as well. The regular tenor of this scheme is five years, but you can further extend it up to 3 years.

Debt funds

A debt fund is a type of mutual fund that provides you fixed returns and is relatively safer as well. Your single investment is channelized through different market instruments such as government securities, bonds, treasury bills, etc. to provide capital appreciation along with the interest income.

In debt funds, you can either invest a lump-sum amount or invest small amounts regularly through SIPs. Also, the interest rate attracted by a debt fund can be as high as 15 percent.

However, if you wish to withdraw your investment without completing the minimum investment tenor, then you will have to pay a hefty penalty. Debt funds are ideal for investors who are looking for long term investment options.  

Senior Citizen Fixed Deposits

Senior Citizen Fixed Deposits can prove to a smart option for retirees who are looking for a risk-free investment which also guarantees high returns. The tenor is flexible as you can choose a tenor between 12 to 60 months.

Moreover, the liquidity of Senior Citizen Fixed Deposits is high since you can withdraw your savings anytime by paying a minimal penalty charge. Also, you can choose a cumulative FD and earn periodic interest; or a non-cumulative FD with compounded interest can also be availed.

Bajaj Finance offers Senior Citizen Fixed Deposits with interest rates as high as 9.10%. With such high-interest rates, the retirees can ensure a regular income even after retirement. Senior citizens can start investing with a minimum of Rs. 25,000 and can also keep their savings safe from fluctuating market variables.

National Savings Certificate

NSC, i.e. National Savings Certificate is a low-risk investment that also provides fixed returns to the investor. It is a government-backed scheme, and Indian residents can avail them easily by visiting a nearby post office.

The current applicable interest rate for NSC is eight percent. However, it is subject to periodic changes as directed by the Ministry of Finance. The interest rates are compounded on a yearly basis, but the compounded interest can be availed only at maturity.

The minimum amount that can be invested is Rs. 100 and there is no limit for the maximum amount. The tenor of 5 years is fixed, and no TDS is deducted from the interest earnings.

These are some of the ideal investment instruments for senior citizens. Start saving for retirement from a young age and make sure that you have enough knowledge about a particular option before investing. The Senior Citizen Fixed Deposit offered by Bajaj Finance is an excellent option for retirees since it is immune from market risks with its credit rating of FAAA/stable from CRISIL and MAAA/stable from ICRA. It also offers 0.35% higher interest rates than regular FD rates for senior citizens. Online account management through Experia-your online fixed deposit account makes it easier for senior citizens to earn surplus income without any inconvenience.