Dear Comrades,
Sitting cross-legged outside the senior citizens counter in the head post office in Mylapore is 63-year-old D.Santhanam, a retired postal department staff. “No transactions are needed as my sons take good care of me,” he says referring to his personal finances. “I like to sit here at times. How long can I keep watching TV at home?” he adds.
Inside the post office, however, there is a lean queue of senior citizens who are there to update their passbooks. In absolute terms, the number of accounts for the postal savings scheme which offers nine per cent interest rate payable every quarter continues to see a steady growth, says M.S.Ramanujan, Postmaster General, Chennai City Region. “But because banks offer a higher interest rate there is some form of migration going from postal savings to the banks based on market fluctuations,” he says.
Investment consultant, Uma Kalyanam, who has several clients who are senior citizens, says postal savings schemes are currently the least preferred option. “Senior citizens are choosing to invest in banks rather than the post office for the simple reason that banks offer a higher interest rate,” she says.
“Following this are the fixed deposit ,” she adds. It is very rare that senior citizens opt for riskier options such as mutual funds or invest in the stock market, says another investment consultant, whose majority of clients are senior citizens.
The Hindu 27.9.11
