I have a savings of Rs 25 lakh, which was sitting in MIS where the returns have been falling every passing day. This has impacted my planning with fixed income stream that I had created in this manner at the time of my retirement in 2014. Please advise suitable alternatives. I am 65 and cannot take too much risk with this sum.
Abheek Barua, Kolkata
If this is the only source of retirement income that you have, you are in a tough spot. The interest rate on monthly income schemes are falling because of changes in the economy impacting the rates. If you do not need a monthly income and as risk taking is not for you; consider the Senior Citizen Savings Scheme, which you could open with your spouse. This scheme currently provides 8.4 per cent interest per annum, and the interest amount is paid every quarter. As this is a government of India scheme, there is practically no risk investing money in this scheme. The scheme comes with tenure of five years, which you can extend for a further period of three years.
