Investments are inevitable in recent times as we have to manage funds for all our major life goals like child’s education, marriage, buying property and more. We also wish to save enough money for family trips, festivals, and other social occasions. One of the most important goals for investing is to ensure that we save enough for our postretirement life. However, while selecting the investment avenues we often get confused due to the wide range of options available in the market.
Investment products can be categorized into two types viz. non-financial and financial assets. Non-financial assets include investment in real estate, gold, etc. where we purchase a commodity at given market value and sell it when we feel that its value has reached a certain high where we can earn a profit. Financial assets can be categorized into stocks, equities, etc. which are market-linked investment instruments and fixed deposits, government bonds, etc. which are fixed income products.
Banks, financial institutions and even the government offers numerous investment schemes that allow us to lock-in our money for a definite time period and earn surplus returns either periodically or when they mature.
Let us have a look at seven best saving schemes in India:
- Fixed deposits
- Fixed deposit
areone of the safest investment instruments offering high, assured returns. Investment terms can be customized as per your requirements.
- With tenor flexibility ranging from 7 days to 10 years, it also offers periodic interest payout options. You can opt for one-time payout at the time of maturity with cumulative FDs, or you may choose the periodic payouts (monthly, quarterly or six-monthly) as per your preference.
- It is a low-risk investment and therefore can be used to balance other riskier investment options in your portfolio like mutual funds, stocks, etc.
- ELSS (Equity Linked Savings Scheme)
- ELSS allows you to invest in equities a minimum of INR 500 with no maximum cap.
- It also allows a tax deduction of up to INR 1, 50,000 from your total annual income as per section 80C of the Income Tax Act.
- The investment tenor of ELSS is three years.
- Mutual funds
- A mutual fund is an investment fund managed by professionals that pools in money from multiple investors to purchase securities.
- It is a good option to diversify your profile since it gives you an opportunity to earn high returns. But it also comes with significant market-related risks.
- Beginners can start by investing small amounts through SIP (Systematic Investment Plan) and can also invest in stocks through mutual funds.
- NSC (National Savings Certificate)
- NSC is an investment scheme which is backed by the Government of India. You can invest in NSC with any post office in India.
- You can start with an investment of INR 500, and there is no cap on the maximum investment.
- NSC offers interest rates up to 8 percent which ensures surplus returns on its maturity after five years.
- Recurring deposits
- Recurring deposits is a safe investment method by which you deposit a fixed amount of money in a recurring manner every month. Banks and NBFCs offer RDs.
- It attracts a high-interest rate of up to 8 percent, and the investment tenor can be set between the range of 1 to 10 years. However, RDs offer less overall returns as compared to fixed deposits (due to the effect of compounding available in FDs). The returns are significantly less when compared with the returns offered by a company FD like Bajaj Finance Fixed Deposit.
- NPS (National Pension System)
- National Pension System helps you to accumulate a huge corpus until your retirement.
- It is backed by Government of India and is run by Kotak, HDFC, LIC, etc. who have also registered pension fund managers of this scheme.
- You can make a minimum contribution of INR 6000 per year to get an annuity that provides you with a fixed income after retirement.
- High-interest savings account
- Many banks and NBFCs offer a high-interest saving account which allows you to earn almost twice than a regular savings account.
- It is a secure form of saving with easy liquidity and guaranteed returns.
More than 95% of Indian investors prefer fixed deposit over any other investment instrument as it offers guaranteed returns, irrespective of market fluctuations. Bajaj Finance Fixed deposit is one of the best options as it offers high FD rates up to 8.75% for regular FDs. FD interest rates for senior citizens are further higher (up to 9.1%). Moreover, it is also credited for its safety and stability by reputed organizations like ICRA and CRISIL. Visit the online portal of Bajaj Finance, choose an FD according to your requirements and enjoy features like online access, auto credit and much more!