Investments that promise fixed returns are an attractive solution for you when you’re seeking stable returns and regular payouts. If you have a low risk appetite, then investing in such vehicles is the ideal way to see your money grow consistently. Additionally, many of these schemes offer you tax benefits under various sections of the Income Tax Act.
Whether you are seeking a safe way to invest your money or just looking to diversify your investment portfolio, here are 4 investment schemes you don’t want to miss out on.
Public Provident Fund
Introduced in the country in 1960s, PPF remains to be one of the most popular investment options as it functions both as a saving and tax-saving instrument. It is an extremely safe investment and will help you build a good retirement fund.
To open a PPF account visit a Post Office, a nationalised bank like SBI or any authorised financial institution. To start, you need a have an opening balance of Rs.100 and maintain a minimum investment of Rs.500 per annum, with Rs.1.5 lakh as the maximum investment per year.
PPF is also an excellent choice as it offers you the Exempt, Exempt, Exempt benefit. This means that the investment amount is tax-deductible under Section 80C, and the maturity amount and interest earned are tax-free as well.
Opening an FD is a good option for you if you are seeking an investment that has low risk and offers special benefits to senior citizens. Apart from offering tax benefits, FDs also come as a boon during a cash crunch because you can use them as collateral to get a loan.
While FDs are available through banks, NBFCs offer you a higher rate of interest, making them the better selection. You can choose cumulative or non-cumulative FDs as per your financial needs and secure growth for your corpus.
Bajaj Finance is one such NBFC that is not only safe, with the highest ICRA and CRISIL ratings, but also offers you some of the best FD interest rates in the country. You need just Rs.25,000 to open an FD here and can earn interest up to 8.75% if you hold a cumulative FD for at least 36 months and up to 9.10% as a senior citizen. Additionally, you can use the FD calculator to forecast your returns from a Bajaj Finance Fixed Deposit.
National Savings Certificate
Introduced by the Government of India, you can invest in a National Savings Certificate by visiting any Postal Service branch. All resident Indians can avail this scheme and you can choose a tenor between 5 and 10 years. The current interest rate for a 5-year NSC is 8% compounded annually, paid to you at maturity. This investment too offers tax benefits under Section 80C and there is no ceiling on the maximum amount you can invest.
7.75% Savings (Taxable) Bonds, 2018
You can invest in this Government of India bond by walking to the nearest SBI branch or one of the other 23 receiving offices and fill out the onboarding form. The minimum investment amount is Rs.1,000, there is no upper limit on the investment amount and as the name implies, you earn returns at an interest rate of 7.75%.
Bonds are issued to individuals and HUFs in demat form and have a maturity of 7 years. These bonds are issued in cumulative or non-cumulative format. If you go for a non-cumulative bond, you will get half yearly pay-outs. On the other hand, if you choose a cumulative bond, interest will be paid at maturity. Though taxable under the IT Act, 1961, the bonds qualify for wealth-tax exemption under the Wealth Tax Act, 1957.
With these safe investment schemes you are sure to see your money earn handsome returns. So without further delay, start the new year with a smart and secure investment in one or more such instruments!