Yes you read it right, and this is the advice that I gave a person who was willing to invest….

Obviously, there is a catch.

This is about a 86 year old widower who has a couple of million Rupees lying around in his life. He has a pension which is 2X of his monthly expenses – which allows him to make 1-2 SIPs at this age too.

So he has been bombarded by mutual fund agents, life insurance agents, bank relationship managers….all badgering him to invest. He had about Rs. 600,000 in his SB account and Rs. 25L in his PPF account apart from a couple of million in his bank FDs.

He asked me ‘should i keep money in a mutual fund or in a bank fixed deposit – which is better’. I said NEITHER. Let is be in your savings bank account earning less than FD -not an issue.

He said ‘this cannot be you’ – in your blog you say money should not be lying in the savings bank account…..and now…!

I said ‘Your son has a huge house, net worth, one earning daughter (the grand daughter of the 86 year old man and about to get married), tons of money…’ so whether you leave him X or Y or Z may not really matter. Earning a better return is a good thing, but it is NOT the only thing that money should do. It should also give you peace of mind. As you do not need the money ….leaving it in the savings bank account is not such a bad idea. At least you do know that every thing is concentrated and in one place. No Tax, no tds….stay cool.