Safe Investments for Seniors

Safe Investments for Seniors

If you want to sale any Financial product in India than add a pre-fix “Safe” on the name of that financial product and people will buy it. The word “Safe” is a Magic Word. You can sell any Investment product to literally anyone in India by applying a pre-fix “Safe”.

This shows the lack of Financial Literacy countrywide. Senior citizens are also targeted. The market is full of financial products like “Safe Investments for Senior Citizens”. Now, the question is that, how Safe the “Safe Investments” for Senior Citizens are?

Well, almost every financial product ultimately divert your money towards the equity or at least part of the money towards equity and part of it in a debt. Well, see. Growth is not at all possible without Equity.

Now, what my argument is that, if you are a senior citizen and want to invest your money than why not invest that money in starting your own Business? I know that you will now tell me that but it’s risky and I am looking for Safe Investments.

Well, owning your own Business is the Safest Investment in the world. This is because you have a management control over that business. Say for Example take the example of this Blog. This blog is my Internet Business and it’s my safest investment than the mutual fund investments or fixed deposits in my bank. This is because I have a full control on the management of this Business.

I can hire and fire “N” number of writers and Internet Marketers for this Business. And not only this but this business runs even without my presence if I hire a team of writers for it. So I think that my own Business is the safest Investment for me in this world.

And so is for you. Remember, your own Business is the safest Investment for you in this world because you have a full control over that business. So according to me the Safe Investment for Seniors is – Your Own Business.

Premature Encashment Rule 16

Premature Encashment Rule 16

Are you the holder of any of the government savings scheme like KVP, NSC, MIS or anything else? Than the Premature Encashment Rule 16 is very important for you to understand. Here is the rule.


Sub-Rule: 1 - Notwithstanding anything contained in rule 15 and subject to sub rules (2),(3)and (4), a certificate may be prematurely encashed any time in any of the following circumstances namely:-

(a) On the death of the holder or any of the holders in case of joint holders.
(b) On forfeiture by pledge being Gazetted Government Officer when the pledge is in conformity with these rules; or
(c) When ordered by a court of law.

Sub-Rule: 2 - If a certificate is encashed under sub-rule (1) within a period of one year from the date of certificate only the face value of the certificate shall be payable.

Sub-Rule: 3 -If a certificate is encashed under sub-rule (1) after expiry of one year but before the expiry of three years from the date of certificate, the encashment shall be at a discount. On the encashment of the certificate, an amount equivalent to the face value of the certificate together with simple interest shall be payable. Such simple interest shall be calculated on the face value at the rate applicable from time to time to single accounts under the Post Office Savings Account Rules, 1981, for the complete months for which the certificate has been held. The difference between the aforesaid simple interest and the interest accruing under rule 15 shall be deemed to discount.

Understand the above rule so that it can help you to understand the premature encashment of your certificate.