8 replies on this article “5 Years Tax saving FD”

1. jdkumar says:

   January 4, 2013 at 2:51 pm

   Dear Ashal,

   I am 34 years currently, so approx 25 years are there for my retirement…

   Thanks & Regards
   Dinesh

   Reply
2. jdkumar says:

   January 4, 2013 at 2:49 pm

   Dear FFC,

   Thanks for your suggestions. I am not against PPF but just confused over which one to select for retirement corpus as well as for tax saving. By seeing interest rate of 9.50 in FD i was curious about it. Last three years we were investing in ELSS and didnt see much returns(hardly 6%, stopped end of 2011), thats why i ruled out ELSS and started saving for down payment for house purchase.

   So please guide me in which instrument i should invest, PPF or FD or ELSS again.
   Eg. 50K in one instrument and 50k(for my wife) in other instrument.

   I am going to allocate all the 80C investments every year for retirement corpus.

   1. If i invest 50k this year in PPF, do i need to invest 50k every year or it could be a one time investment for next 15 years ?
   2. current int rate is 8.8% pa, would my returns after 15 years get affected if govt revise the interest rate in future ?
   3. What is your advice on investing 50k in canara robeco equity tax saver fund, if ELSS is a better choice ?

   Please advice me which is the best one…

   Thanks
   Dinesh

   Reply
   1. Ramesh says:

      January 4, 2013 at 3:02 pm

      Have you thought about the return which your ELSS gave you in the last one year?

      Regarding your queries:
      1. You need to put a minimum of 500 every year in each PPF account.
      2. The rates will get revised every year and correspondingly your total returns will change.
      3. Better to go with an ELSS with consistent management team, like Franklin or HDFC.

      Reply
3. Ashal Jauhari says:

   January 4, 2013 at 5:53 am

   Dear JD Kumar, are you going to retire in 2018 or 2019? that’s the time frame your tax saving FDs ‘ll mature.

   Please answer.

   thanks

   Ashal

   Reply
4. Free Financial Calculators says:

   January 3, 2013 at 10:54 pm

   He says “Or any option other than PPF,NSC and ELSS”

   ps call me pattu

   Reply
5. Bond Bhai says:

   January 3, 2013 at 9:55 pm

   Pattu sir, I did not understand this you said “You want to save to save tax, you dont want PPF,NSC and ELSS.” He is not against PPF i guess.

   PPF is a good option, only issue it gets locked up for a long time. ELSS is a better option and it gets locked for 3years.

   Reply
6. Ramesh says:

   January 3, 2013 at 7:18 pm

   Read up this.

   http://www.subramoney.com/2013/01/my-pension-hamper/

   Reply
7. Free Financial Calculators says:

   January 3, 2013 at 7:02 pm

   you want an investment for creating a retirement corpus. You want to save to save tax, you dont want PPF,NSC and ELSS.

   While your choices questionable and certainly debatable let me stick to answering your question:

   You have two choices as I see it
   1. Ulips which is a terrible choice. Might as well put it in FD

   2. UTI Retirement Benefit Plan and Templeton India Pension Plan. These are retirement plans offered by mutual funds will a little equity component.
   They will beat FD PPF and NSC returns but will not match equity returns.
   There several rules on lock-in which you need to refer to the fund brochure
   Both are NOT great choices but if you dont mind the lock in 2 is a reasonable option but certainly not ideal for retirement

   Reply

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