As the interest rates on fixed deposit have gone down by around 2.5 percent, senior citizen can keep their money growing by investing in equity.
If a person was earning Rs 20,000 per month from his FD, a reduction of 2 percent in the interest rate is a reduction of 20 percent from his income. That means he will now earn Rs 16,000 per month.
According to experts, the move towards a lower interest rate economy, while great news for the economy, is of little relevance to older, retired people. Lower inflation and interest rates, better fiscal management and higher economic growth carry no benefit for them because they are no longer in the earning and accumulative phase of their lives, reports ET.
The best way to keep your money growing is to invest in equity in a measured, de-risked and tax-efficient way.
Click here to read the full story.