Gulf News readers in favour of saving schemes

http://archive.gulfnews.com/articles/09/05/23/10315961.html
05/22/2009 | By Rabab Khan, Community Journalist

Dubai: When the global financial crisis struck, the primary concern for most people was to keep their savings in a safe place.

Bonds and fixed deposits are just some of the ways to achieve this and Gulf News readers shared their experiences with saving schemes.

Lim Norma, a Filipino expatriate, said she is grateful for the saving schemes available in the country.

She said: "Recently, I invested in saving certificates and I think it is a good offer. We keep our money safe and at the end of the day have a chance to win a large sum of money. Additionally, it is not about winning, it is about psychological satisfaction."

Norma believes that companies should consider using the schemes at a corporate level.

She said: "In the Philippines, some companies encourage employees to invest in bonds, which are not necessarily related to the company. There is a minimum amount and the dividends differ based on your contribution. Also, employees can withdraw their invested amount at any point."

Tripti Pathak, an Indian expatriate, feels that her money is secure when using fixed deposits.

She said: "It is a great way to be certain that part of our income is safe and will amount to a certain profit during the year, in the form of interest."

Pathak urges companies to start utilising saving schemes for the benefit of their employees.

She said: "If companies used the schemes, it would give some sort of security to their employees and help safeguard their money for the uncertainties in life. Additionally, it would be a great form of motivation for them."

Looking at the flip side of the coin is Nirmal Devasurendra, a Sri Lankan expatriate, who is sceptical about saving schemes.

He said: "I personally think it is not a sound investment, especially considering the global financial crisis. I would not want to allocate all my funds in one place. However, I do know somebody who received prize money after investing in one of the saving schemes, recently. It is a one-time shot and could be a good opportunity for some."

Mona Syed-Mirza, a British expatriate, agrees.

She said: "Before investing in one of the options, we need to analyse our personal situation and make an informed decision. In a stable environment, a fixed deposit might be a good idea, as it is a good way to earn a little money through interest. But, if you are in a time of need you can get unnecessarily tied up."