Mother’s day is approaching and all of us are busy finding the best gifts for our mothers to tell her how special she is. But all these conventional gifting ideas only last for a moment in time. Why not give your mother greater spending power this Mother’s Day, or something that can last her a lifetime while giving her financial independence and security. Here are six financial gifts you can consider for your mother that will truly surprise her this Mother’s Day:
1) Financial advisor: If your mother doesn’t already work with a financial professional, consider gifting her the services of one. A financial advisor can help your mother manage her financial portfolio and help her move towards her retirement goals by putting her money to better use.
2) Stocks/mutual funds: If your mother has an interest in investing, then gifting her a piece of her favourite company can be a very interesting idea. Even if she is not a keen investor, good quality equity stocks can give high returns in future. You can gift the shares by transferring them directly to the recipient’s demat account. The recipient in turn has to fill out a receipt instruction with relevant details and submit it to his depository participant.
Mutual funds units are not transferable. So, in order to gift MFs, either redeem the mutual fund units and gift the proceeds to your mother on this Mother’s Day, or transfer funds to her account and buy the funds on her behalf.
3) Gold bonds: Gold bonds, instead of physical gold, are a smarter way to invest in the yellow metal if you are looking for a real rate of return. Its value is likely to appreciate given that global uncertainties would push up gold prices further. Also this has sovereign guarantee of payment and no chance of default at the time of redemption. Moreover, as per the sovereign gold bond scheme, the bonds can be gifted or transferred to anyone who meets the eligibility criteria. So, gold bonds can make an idea gift for your mother on Mother’s Day.
4) Health insurance: Gifting a health cover to your mother assures her of best medical care when needed without any strain on her finances. Indian market currently abounds with options on healthcare plans, with many insurance providers also offering family floater healthcare plans specifically designed to include senior members of the family. However, the options tend to limit down if the age of your mother is more than 50. But the good news is that many companies are now coming up with mediclaim policy specifically designed for senior citizens, so you can opt one such, too.
5) Fixed Deposit: A fixed deposits (FD) is one of the most common financial gifts due to the government assurance of returns and being safe in the market. Though, the rate of interest in this section is falling every year, with the current rate of interest somewhere around 8%. These have a tenure period of minimum one year to 10 years. An additional 0.25 – 0.5% interest is also given to senior citizen fixed deposit investors.
6) Senior Citizen Saving Schemes (SCSS): If your mother was working and is aged above 60, then you can also gift her benefits of the Senior Citizen Saving Schemes (SCSS). SCSS is a government-backed savings instrument offered to Indian residents aged over 60 years. The deposit matures after five years from the date of account opening but can be extended once by an additional three years. The SCSS interest rate for January to March 2019 has been set at 8.7%. This is the highest interest rate among the various small savings schemes in India. SCSS is available through public /private sector banks and India Post Offices. Depositors are allowed to make a lump sum deposit with minimum deposit of Rs 1000. Deposits greater than Rs 1000 have to be made in multiples of Rs 1000.The maximum SCSS limit deposit is Rs 15 lakh. SCSS can also be opted by those who have attained 55 years of age provided they have retired under applicable superannuation or VRS rules. In such cases, the account should be open within one month of the receipt of retirement benefits.
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