I wish to give X amount to my parents for their monthly expense. Giving this amount on a monthly basis doesn’t help as it will not fetch much interest. I plan to open an Fixed Deposit in my parents name and keep myself as the secondary FD owner. The interest earned on this will be deposited to a savings account where my parents will be the primary account owner and I will be the secondary owner.
My understanding is that the interest earned here will be taxable to my parents and not to me. Considering they are senior citizens and with no other income, they save on tax and can use the entire interest for their expenses.
Is this a correct?
Thanks & regards
Vijay