My Mom who is 51 years is a housewife. She saves INR 500 a month and wants to make the best use of it. Where can she invest this money to get the maximum benefit? she wants this money at 60.
It’s very necessary for a housewife to be financially savvy and at least have a bank account. Whatever money she saves from the monthly budget, she can deposit in this bank account. Your Mom is saving INR 500 a month and having her own bank account might persuade her to save more. She might get some money as gifts from relatives which she deposits in this bank account. Your mother can then invest INR 500 each month in a recurring deposit (RD) of a major bank and earn good interest, slightly less than fixed deposits. Recurring deposits have a term between 6 months to 10 years. Your mother can invest INR 500 each month in the RD and withdraw this amount with interest earned on it, close to 60. This is a disciplined way to invest and meet her financial needs at 60.