Which is best Monthly Income Plan for Senior Citizen in India?

Short Answer

Several monthly income plans available such as senior citizen fixed deposit, senior citizen savings scheme, post office monthly income scheme, tax-free bonds, debt funds, and many more are the best monthly income place for senior citizens in India.

Detailed Answer

Senior Citizens require a steady monthly income, which will let them spend a comfortable retired life. There are several investment plans which offer lucrative return with significantly low risk. It can be a Fixed Deposit, Saving Scheme, Bonds, Debt funds, and so on.

Best Monthly Income Plan for Senior Citizens

Here we are going to cover some of them.

1. Fixed Deposit (FD) for Senior Citizen

Banks offer a higher interest rate than their regular rates for senior citizens. So a Fixed Deposit can be a great option for those who want to have a steady monthly income plan. The tenure for the fixed deposits is also very flexible and usually, ranges from 12 months to 60 months.

As a senior citizen one can choose tenure according to their financial needs. Finally, FDs are completely safe and free from various market variables, so you can count on them and don't have to worry about the market conditions.

2. Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme is also known as SCSS, which offers the option to invest a sum between 500 INR to 15 Lakh INR depending on the return you are looking for. This savings scheme offers an attractive interest rate of nearly 8.6%.

The SCSS application process is very straightforward and doesn't require you to handle a lot of paper works for investing money and is considered to be one of the safest investment options for senior citizens.

3. Post Office Monthly Income Scheme (MIS)

One of the best monthly income plans for senior citizens in India is the Post Office Monthly Income Scheme, also known as MIS. One can invest a maximum of 4.5 lakh INR (in case of a single account) or 9 lakh INR (in case of a joint account)

The Post Office Monthly Income Scheme offers an interest rate of nearly 7.6%, which is considered to be one of the most reliable income plans for senior citizens in India. This scheme has a lock-in period of 5 years and the interest will be directly credited to the savings account associated with the post office.

4. Tax-Free Bonds

These bonds are usually issued by the government to raise money from the public to execute a project. These bonds are usually tax-free and offer interest rates between 7.3 to 7.5%. One can invest a maximum amount of 10 lakh INR.

Even though these government bonds are tax-free, yet they do no offer similar flexibility to a Fixed Deposit. The tenure can range between 10 to 30 years, depending on the length of the government project.

5. Debt Funds

These are the mutual funds that are considered to be safer than other types of mutual funds. Investing in long-term debt funds can offer higher returns depending on the market performance. The interest rate can even go up to 15%.


So these are some of the best monthly income plans for senior citizens in India. You can opt for any of these plan depending on your willingness to take risks as many of these pans such as bonds, debt funds depends on the market performance. If you have any other queries, kindly comment down your queries below.

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