A reader asks,

I work for a multinational and my wife works for the Government. We normally use my salary for day to day expenses while my wife’s salary remains almost untouched. Where can we save/invest her income while keeping our peace of mind (not keen on the equity markets).

Here’s what I read from your situation: A steady and fixed monthly cash surplus that you’d like to save in non-equity instruments.

Now, what are your options?

I’d strongly recommend the 5-year Post Office Recurring Deposit scheme. Given the stability of Government employment, the lock-in period plus the requirement to make a deposit each month shouldn’t be a concern for you. At the end of 5 years, should you be in a position to do so, you can extend the account for a further block of 5 years.

I’d also recommend that you split your savings into multiple deposit accounts. For example: Suppose you plan to save Rs 20,000 each month, open 2 deposit accounts, each for Rs 10,000. Provides a degree of financial flexibility.

What do you think?