The Senior Citizens' Saving Scheme (SCSS) is an ideal tax-saving option for senior citizens above 60. The money is safe, while the returns and liquidity are reasonably good. There is an investment limit of `15 lakh but it is sufficiently high. However, the interest income from the scheme is fully taxable.

The other problem is that even if you have a large amount to invest, the maximum deduction will be `1.5 lakh a year. You can stagger your investments across 2-3 financial years to make full use of the deduction under Section 80C. You can open an SCSS account in a post office or designated branches of public-sector banks. The interest is linked to the government bond yield. It is 1 percentage point higher than the 5-year government bond yield. Unlike the PPF, the rate remains unchanged till maturity.