March 7, 2013 10:35 am
Dear manish, are you sure that same high interest rates ‘ll be available to you after 3Y when the renewal time ‘ll arrive? There lies the answer. I’m locking the current high interest rates which may not be available after few years down the line.
Dear Manish, As on date PO MIS return is poor than bank FDs as being Sr. Citizen, depending upon which bank your father is dealing with, he may get interest anywhere from 9.25% to 9.75%. Whereas PoIS is ofering merely 8.5% ROI.
Thanks Ashal, Can u tell that how much interest rate he recevied on FDs? At present my father invested in Post Office(Monthly Income Scheme) in joint account. How is this ?
My father is of the same age and is getting pension from state govt. At the time of retirement, he got some amount in lump sum and consider his age, I suggested him to go with Post Office MIS (Monthly Income Scheme). For any emergency I can take care of him and for medical, he is given post retirement medical facility so he invested 3 lakhs in MIS and getting about Rs.2000 as monthly interest.
I heard there are Bank FDs as well which gives interest on monthly basis, though I have not checked the same myself. He has also put in an FD of 50,000 for 1 year with his bank for any immediate requirement for his and keeps on renewing it depending on rate of interest and time period. Being a senior citizen, he gets 0.5% extra as per bank offerings.
May be this can be of some help to you.
Dear Manish, as he is Sr. Citizen, he is eligible for extra interest. Please ask him to invest in 10Y bank FDs & he may start receiving interest on mly basis.
Reference your response, I have noticed that some of the banks (e.g. HDFC Bank) gives lesser interest rates on 5-10 years as compared to 1-3 years. Considering this wouldn’t be a better idea to do the FDs for smaller periods and renewing it (leaving aside the trouble of renewing it offline).
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