invest options for senior citizen

POSTED BY Srinivasan Jambunathan ON September 5, 2012 7:38 pm COMMENTS (3)

Dear Forum members,

I am seeking your advice for investing approx. 5 Lakhs of my father’s (aged 70) amount.

I would like to split this into say 2 Lakhs as Liquid and 3 Lakhs for slightly longer term (2) yrs.

He falls in the Zero – 10% (max) tax slab category.

Look forward to your advice.

Thanks,

Srinivasan

3 replies on this article “invest options for senior citizen”

  1. Deepak R khemani says:

    Hi,
    in case of urgent need of money there will be a deduction of 1.5% if you break prematurely as the period is 5 years. Do not invest the full amount in the SENIOR CITIZENS SCHEME only.
    The Interest Rate of this scheme now is 9.3%
    HDFC Limited is giving 10% to Senior Citizens for a period of 33 months and 9.5% for 5 years
    It makes sense to break it up into multiple FD,s as suggested by Arshal for the advantage mentioned by him

  2. Dear Srinivasan, My take for a simple solution – go for 5 FDs of 1L Rs. for a period of 6-7-8-9-10 years in the bank where he already has a SB account. The reason of such split. In case of need of liquidity, he w’d need to break only one or 2 Fds of 6-7Y term. Rest ‘ll keep on earning interest for him.

    Thanks

    Ashal

  3. Why do you want to complicate it , Just put that in senior citizen saving scheme . He will get 9% interest .

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today