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  • Category: Miscellaneous

    What is the safe place for them?

    This is the most worried point these days for the common people. There are many retired people who worked in private organisation. They will get their retirement benefits in the form of PF and gratuity. They will generally keep this money in the banks and spend their days with the interest that is being come monthly to them. The EPF pension they will be getting is very minimum.
    But recently the scams that are getting revealed in the banking sector and the way the interest rates are coming down is unexplainable. So these retired people are very much worried. Earlier days everybody is having a feeling that banks are safe. But that concept also going away these days. By giving to private parties there is no guarantee of the original amount also getting back. Now for them, it is a big puzzle to decide on the safe and reasonable returns. Any suggestions from the members?
  • #627394
    Yes I am also having a feeling for the senior citizens who want to stand on their own financially even after retirement and as they want to live with interest on fixed deposit from public sector banks. But the interest rate is very less when compared to private banks and thus there is confused notion in their minds as to where to park the funds. Moreover the recent scams has jolted the very belief of saving in the banks as the investment is not safe. I think seniors can go for the post office savings bank, which is now giving good interest and also the ATM card for withdraw from various ATMs of the banks.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #628102
    With all the news about the banks failing on its loan books and huge sums of money, it is tough for the private employees to hope to get a good return on the traditional instruments of savings. Heath and family needs would be difficult to be addressed to without much in hand. So, for such people, it is better to spread their savings into different places and fulfill their pending responsibilities.
    If something bad happens to the pension funds or FDs, although the banks can ignore the situation of the pensioners, the Government certainly cannot. It would step in to help the public.
    One thing is becoming more and more clear, traditional most people used to feel,once they retire life would be easy without much stress, now, it is not going to be that easy. It is better to be prepared by having an health policy, some savings, some gold, some MFs and other investments. People would start using a reverse mortgage, more frequently if cash in hand is less during retired life.

  • #628136
    I think one should not worry much in investing the retirement proceeds in banks. There appears almost no possibility of getting investments lost due to type of bank scams we hear from time to time. Of course, the rate of interest on fixed deposits in the bank are diminishing but one has to select either of 'security' or 'higher rate of interest'.

    There are other options also like Senior Citizens' Saving Scheme (SCSS) etc. I recommend mutual funds also provided the same are bought in consultation with a trustworthy financial advisor.

    Any investment which promises returns @ more than 10% is viewed suspiciously by me.

    Let us encourage each other in sharing knowledge.

  • #628209
    Surely a matter of worrisome. But the thing to be noted is that these scams have been a part of the establishment since the starting but never got so alarming that those came to surface & was closed. I am saying this as we were completely dependent on one news channel only. Now as the competition has been increased the means of providing updates has also been created that any news can reach to you within a minutes of its happening with no boundation of where the incidence have taken place.

    The integrated ERP software along with less paperwork add to the efficiency & processing of jobs in a most transparent manner.

    Even in the atmosphere of such improvements the shifting of the blame games & the authority ship must be checked to every step & if found guilty then should be punished in order to control such occurring in the future that banks are still the safest place to keep our hard earned money.

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