V
V.Balasubramani
Guest
How to earn more in the golden years
Depending on your liquidity requirement, invest in the right debt instruments
When interest rates start falling, senior citizens are impacted the most.
They are unable to take riskier bets such as putting a large amount of their portfolio in equities. And, the returns on fixed instruments, usually recommended for them, start slipping.
Banks have recently lowered interest rates and are now offering fixed deposits (FDs) between 7.5 per cent and 8.45 per cent for the elderly.
There's another issue regarding the adverse impact. With the Reserve Bank of India (RBI) recommending to the government that small savings rates be reviewed (read, aligned with the lower interest rate scenario), returns on instruments that traditionally give higher returns might get lower (if the government accepts the recommendation).
Small savings schemes include the public provident fund, post office senior citizen savings scheme (SCSS), post office time deposits and others.
Read more at: http://www.rediff.com/business/report/perfin-how-to-earn-more-in-the-golden-years/20151012.htm
