Senior citizens have something to cheer about as they find opportunities to earn a regular income have increased with the changes in interest rate for small savings. There are new rates that have come into the picture from the start of new financial year in April, which means the investment planning can be done efficiently to get the most out of the present situation. For regular cash flows, it is vital to concentrate on areas that will offer various opportunities. Here is a look at some of such areas.

Monthly income scheme: The monthly income scheme is offered by the post office and provides one of the best routes to ensure a regular cash flow. There is a limit to the amount of investment in the scheme, which is Rs 4,50,000 for a single individual, and Rs 9,00,000 if the investment is in a joint name. This will ensure that the total investment requirement is capped.

The amount of interest earned each month is directly deposited into the savings account of the investor, saving a lot of trouble of having to go to the post office each month to collect the amount. This becomes one of the main areas that can be looked at, as the good news here is the rate of interest on the account now stands at 8.5 per cent, though there is no bonus at the end of the time period of the investments, that is five years now.

Senior citizens savings scheme: This is another option that the senior citizens can use for their benefit. A maximum investment of Rs 15,00,000 can be made by the individual in this scheme, with a quarterly payment of interest. Since the amount of investment is higher, this becomes a figure that cannot be ignored. Also, due to the hike in rate of interest on the offering to 9.3 per cent, an investor need to be careful about how they are allocating their funds.

Fixed deposit: The last area within the overall options that the investors should take care of are fixed deposits, where the investor can earn a figure that is fixed and known, and also will be paid out at regular intervals. There are specific time periods at which the interest will be paid, and there is also some element of flexibility present with the fixed deposits. One of the important points here is that there can be a withdrawal of the amount in case of an emergency, which might not be possible in some other options.