Invest in mom's future: 5 best financial gifts for Mother's Day
fixed deposits are at multi-year highs. Most banks are offering interest rates in the 7-8% p.a. range.
Some small finance banks are offering interest rates in the 8-9% p.a. range. There are good interest rates, higher than the inflation rate.
Your mother can get the additional benefit of 0.25% to 1% if she is a senior citizen. If your mother is a senior citizen, you can consider opening an account under the Senior Citizens Savings Scheme (SCSS) for her. It has a tenure of five years, and the current interest rate payable is 8.2% p.a.
On maturity, the account can be extended for another three years. The interest rate is announced for every quarter before the start of the quarter. For example, the interest rate applicable for the quarter from 1st April 2024 to 30th June 2024 is 8.2% p.a.
The SCSS pays out interest quarterly. Thus, it can create a steady income stream for your mother. If your mother loves accumulating gold regularly with her savings, you can start a systematic investment plan (SIP) in a gold mutual fund.
With a monthly SIP, she can contribute a specified amount on a specified date every month for a specified period. She will benefit from the upside in gold prices during the investment period. Gold mutual funds take care of purity, storage, insurance, etc., without additional costs for the investors.
She can redeem the gold mutual fund units whenever she wants to buy physical gold. With the redemption proceeds, she can buy her favourite gold jewellery. A retirement fund gives financial freedom during the golden years.
You can start an SIP for your mother to build a retirement fund. If the investment time horizon is more than seven years, you can choose an equity fund for investment. You can look at
. Read more on livemint.com
