When you exit work life and enter retirement, you also automatically become entitled to several financial benefits offered by the government and various financial institutions. Such financial benefits can make your life easier and help you enjoy the retirement period. However, to use such financial benefits, you need to be aware of them. So, here are some of the important financial benefits that are only available to senior citizens.

Higher Interest On FDs

Fixed deposits are among the safest investment options for risk-averse investors such as senior citizens. Senior Citizens FD instruments are available through banks, which offer a higher interest rate of around .25 per cent to .50 per cent per annum over and above their regular FD interest rate. Similarly, in corporate deposits, many companies offer senior citizens a higher interest rate of up to .50 per cent over their regular FD interest rates.

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Higher Tax Exemption Benefits

Under the old tax regime, senior citizen taxpayers are entitled to several tax benefits. Senior citizens get a higher deduction of up to Rs 50,000 u/s 80D towards payment of health insurance premiums. U/s 207 of the Income Tax Act, senior citizens who don’t have income from business and profession are not liable to pay advance tax. Senior citizens are entitled to a tax deduction on interest income from bank and post office deposits up to Rs 50,000 in a financial year u/s 80TTB. The basic exemption limit on income is Rs 3 lakh for senior citizens, while Rs 2.50 lakh for other regular taxpayers.

So, as senior citizens, you can save taxes using various benefits allowed by the government.

Investment And Loan Products Specifically Designed For Seniors

Some of the investment products available in the market are designed especially for senior citizen investors. For example, Senior Citizen Savings Scheme (SCSS) is offered to retirees and people aged 60 years and above. Pradhan Mantri Vaya Vandana Yojana (PMVVY) is available only for senior citizens.

Senior citizens can use the reverse mortgage loan (RML) scheme to get money from the bank in the form of regular monthly income or a lump sum. Senior citizens with pension accounts can also get pensioner loans from banks.

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Other Financial Benefits Available Only To Senior Citizens

Some states have exempted property tax on properties owned by senior citizens. Most banks have specially designed savings accounts for senior citizens that offer attractive features such as doorstep banking, special desks for seniors at their branches, lower locker charges, waivers on balance, non-maintenance charges, etc. So, if you are turning 60 shortly, cheer up because a plethora of financial benefits await you!

The author is an independent financial journalist.