Outlook Money
Diwali gifting traditionally includes cash, gold and other valuables. Financial gifts offer additional options, from savings deposits to insurance coverage and investments for family members.
Gold and silver coins are traditional festive gifts, particularly during Dhanteras. They are available in different weights and denominations, offering options across different gifting budgets.
A fixed deposit can be opened jointly or in an eligible recipient's name, subject to bank procedures. It offers predetermined interest for a selected investment tenure.
Mutual fund units can be gifted through prescribed transfer facilities. Alternatively, an investment can be started in the recipient's name, subject to applicable account requirements.
A health insurance policy can be purchased for an eligible family member. The coverage, sum insured, exclusions, premium payments and renewal conditions should be considered.
A life insurance policy can provide financial protection to eligible family members. Policy ownership, nominee details, premium commitments and coverage conditions should be checked before purchasing.
The choice depends on the recipient's age, financial needs and preferences. Consider liquidity, investment tenure, insurance coverage, tax implications and applicable rules before gifting.