Whenever it comes to savings, the name of bank’s fixed deposit (FD) comes first. Investment in FD is safe and you also get guaranteed returns. But do you know that apart from FD, there are many investment options, where you can get good returns by investing money and at the same time the investment is also safe? Let’s know about some such fixed income instruments:
Recurring Deposit
Recurring Deposit (RD) is an investment option in which you deposit a fixed amount every month. This is a good way to get big benefits from regular small savings. RD gives more interest than a normal savings account.
Public Provident Fund
Public Provident Fund (PPF) is one of the popular small savings schemes in the country. It is a scheme that gives good returns in the long term. Currently, this scheme is giving interest at the rate of 7.1%. The most special thing about PPF is that it is included in the government’s EEE scheme. EEE means Exempt, Exempt, Exempt. That is, the money deposited in it, the interest received and the amount received on maturity are completely tax free.
Post Office Monthly Income Scheme
Regular income can be arranged through Post Office Monthly Income Scheme (POMIS). Currently, it is giving interest at the rate of 7.4%. After making a lump sum investment in this scheme, interest starts coming from the next month itself. In this scheme, you can open an account with an investment of just Rs 1,000.
National Savings Certificate (NSC)
National Savings Certificate (NSC) is a fixed income investment scheme. In this government scheme, you can open an account with a minimum deposit of just Rs 1000. This scheme matures in 5 years and you get the benefit of compound interest in it. Talking about the interest received by the investor opening an NSC account, it is currently 7.7%.
Benefits of investing in these schemes
Safe investment: These schemes are backed by the government, so the investment is safe.
Guaranteed returns: These schemes offer fixed interest rates.
Tax benefits: Some schemes offer tax exemption.
Long term investment: Good returns can be obtained in the long term.
Apart from FD, these investment options can also be considered. These options are safe and also give good returns. However, before investing, keep in mind your financial needs and risk tolerance.