Both self and mi wife are Sr Citizens and are looking to invest significant amounts in long term (10 yrs and above) secure deposits for regular monthly/quarterly interest. A few years back I had invested in such a scheme with IDBI Bank. The scheme I had taken then gives me 9.5% annual interest payable every quarter and with no cancellation charges if the deposit is terminated before maturity. However nowadays similar interest rate is offered only by Fincare Small Finance Bank for a maximum of 3 yrs (interest payable quarterly). This tenure appears to be very short and a penalty of 1% is applicable if the deposit is terminated before tenure completion. I would wish to know from you two things (1) how secured are deposits made in Fincare Small Finance Bank, as I do not know much about this Bank, (2) are there any other entities who provide such secure returns like the one I am anticipating.
May I know, if both of you are highly dependent on the income generated from this lump sum corpus investment(s)?
Can you afford to take some risk? Do you have any other sources of income??
Thanks for your response. From a risk perspective, I would say that we are willing to take a risk of 20%. In other words, we are quite conservative and risk averse.
Thanks for your response. Though we would be quite dependent on the returns from the corpus, but not totally. I would say that we are willing to take a 20% risk on the returns of the capital. We do have some other investments but cannot depend on those returns totally. Hence we are looking to augment those returns with the said investment returns. Thanks & Regards
There are few investment avenues in fixed income category. You may kindly go through below article ;
Lump sum Investment options for Retirees/Senior Citizens | Where to invest my Retiral benefits to get Regular Income?
Thanks for a detailed and comprehensive response covering all aspects on the subject. However, I am still looking for answers to my other two questions viz, (1) your assessment of Fincare Small Finance Bank – is it as safe as deposits in other schedule banks like IDBI (where I already have a deposit) (2) is it prudent to invest in the FD plan they are offering viz. 9.5% for a 3 yr deposit. Thanks & Regards
Personally, I would suggest you to stick to popular names in banking space for your high ticket lump sum investments. Given the NPA turmoil in banking/NBFC space, advisable to avoid not-so popular Small banks (though they are well controlled by the Regulator).
Related article :
Bank Deposits: Are you aware of this interesting fact?