The Monetary Policy Committee of the Reserve Bank of India (RBI) has recently cut the repo rate by 25 basis points (BPS). , This will directly affect the fixed deposit (FD) i.e. the interest on FD will now decrease. In such a situation, there may be a problem for those senior citizens, which depend on regular income on them.
Increasing in this direction, Bank of India has announced its 400 -day special FD scheme (on which 7.3% interest was being received) from April 15. It has also cut the FD rates of several other periods. At the same time, HDFC Bank has reduced the interest rate on savings account from 3% to 2.75%.
What to do now senior citizens?
Senior Citizens still have many investment options. Preeti Jende, the founder and SEBI registered investment advisor of Apna Dhan Dhan Dhan, says Preeti Jende, “Senior citizens should now invest in small savings schemes, because the rates here are more than FD.”
- Senior Citizen Saving Scheme (SCSS) – 8.2% annual interest (quarterly payment).
- Post Office Monthly Income Scheme (POMIS) – 7.4% annual interest (monthly payment).
- National Savings Certificate (NSC) – 7.7% interest (Payment on Annual Compounded, Maturity).
According to Jende, ‘AAA-rated corporate FD of companies with some best track records can also be considered. These banks can pay more interest than FD and they also have the option of monthly payment.
Long -term fd also good option
Vishal Dhawan, founder of Plan Audes Financial Planners, says, “When the interest rates are expected to fall more now, senior citizens should invest in long -term FD instead of short term.”
He believes that a cycle of interest rate in India usually runs 2-3 years, and we are currently in that cycle of low interest. That is, interest rates may fall even more in the coming years.
Investing in equity market is also right
Financial advisors believe that despite the current instability of the market, senior citizens should also put a part of their portfolio in equity.
Zende says, ‘Do not go directly to shares, but invest in hybrid mutual funds or balanced advantage funds. They can turn 10-20% of their total capital, if they can take a little risk. ‘ Dhawan also has the same opinion and recommend options like large-cap funds and index funds.
No need to panic in interest rates
Dhawan says that there is no need to panic over the fall in interest rates. The decline in inflation is also the reason behind this policy, and this will also limit the daily expenses of senior citizens.
He says, “Instead of making decisions in panic or hurry, rebelting investment in a planned manner is the right way. This will give senior citizens a good value of their investment.
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