SENIOR CITIZENS' SAVING SCHEME

As mentioned earlier, this is the best tax-saving instrument for retirees.

At 9.3%, it also offers the highest interest rate among all Post Office schemes. The tenure of the scheme is five years, which is extendable by another three years. The interest is paid out in quarterly tranches on fixed dates, irrespective of when you invested. However, there is a `15 lakh overall investment limit per individual.

Also, the scheme is open only to investors above 60. In some cases, where the investor has opted for voluntary retire ment and has not taken up another job, the minimum age is relaxed to 58 years. There is also no age bar for defence personnel. They can invest in the scheme even before 60 as long as they satisfy the other requirements.