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One of the most important question which comes to a persons mind is what to do with money in my bank account? Many people with white collared job starts investing money in stock markets(which is a risky affair) and after loosing couple of thousands in stock markets they are again at ground zero with same question haunting them - What to do with money in my bank account?
In this post I would list 10 of the safest options available to people for investing their money for a long term perspective, Investing money for a 5 year plus term would be beneficial wrto tax saving under 80c.
1.Public Provident Fund (PPF): Public provident fund investment are long term investments which are tax free and spread over a term of atleast 15 years. currently money deposited in PPF account gets interest of 8.5 - 9 percent annually. It is probably best of the option available.
Other Related must read posts:
All time great investors
Binary Options vs day trading
Top 5 android apps for Indian stock markets
Intraday Trading tips for beginners
2.National Saving Certificate (NSC): National Saving certificates have an investment duration of 10 years and give an annual return of 8-9 percent currently. It is one of the safest option available to people and is better then keeping money in saving accounts as money in saving account attract interest of just 4 percent annually.
3. Saving scheme for Senior citizens: SCSS or Saving scheme for senior citizens is money investment scheme for senior citizens and attracts interest of over 9 percent annually, which is highest among all the 10 money investment options available. Money invested in SCSS falls under 80C investments and is for a duration of ten years. Interest earned by a person is however taxable under normal tax slabs for senior citizens.
4. Recurring Deposit: Recurring deposit is another safest option for investing your money and get good returns of 8-9 percent annually. Another merit of putting your money in recurring is that money goes in form of installments per month and hence is less burden on account. You can invest for a period ranging from 6 months to 5 years in recurring deposit. Interest earned through recurring deposit is taxable if it is over 10000 INR per annum.
5. Savings account: This is probably last option which one would choose if he has money for investing. Keeping money in savings account earns least interest of mere 4 percent per annum. Interest earned in taxable and this option doesnot fall in 80C declaration. Some of the banks like Kotak gives interest of 6 percent on savings account provided you maintain minimum of 100 thousand rupees balance in your savings account.
6.Fixed deposits with bank: Keeping money in fixed deposits or FD's is most common method which is used by people to earn more interest then savings account. Interest earned is taxable under normal tax slabs. Another advantage with fixed deposits is that you can liquidate part of the investment if you want money for some purpose. In this case bank would give interest earned till the time of liquidating part of fixed interest by applying just 1 percent of penal interest. Fixed deposits is best option for small investors as you have lot of flexibility for the time duration which ranges from just 7 days to 10 years.
7.Tax saving FD: tax saving fixed deposits is for a tenure of 5 years and fall in category of 80C investments. Money is locked for 5 years and you cannot liquidate it before full tenure is over. You can declare money invested in Tax saving fixed deposit under 80C limit of 150,000 INR tearly. Interest earned is similar to normal FDie 8-9 percent depending on bank in which you have account.
8.Post office monthly investing scheme: You can also invest your money in post office schemes which generally have interest rates that are similar to normal FD deposit. ie ou can earn between 8-9 percent annually. Income earned from interest is taxable under normal tax slabs rates.
9.Systematic investment plans (SIP): Mutual funds investing is linked with stock markets, hence there is uncertainity involved. If you donot want any uncertainity about the returns then SIP is not for you.
10.Fixed deposit funds: FDF's are similar to Mutual funds investing and have a tenure of 1 year or above. Interest earned is more then FD, but there is slight risk involved
Hence concluding this post: It is quite evident from these ten investment options that if a person wants zero risk on return of investment then he/she can chooe any of one from first 8 options. These are the safest investment options available to person as these investments are not linked to volatile stock market investments. It's for those who want complete peace of mind and doesnot bother earning 2-3 percent less(compared to Stock markets average yearly returns).
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HAPPY INVESTING!
One of the most important question which comes to a persons mind is what to do with money in my bank account? Many people with white collared job starts investing money in stock markets(which is a risky affair) and after loosing couple of thousands in stock markets they are again at ground zero with same question haunting them - What to do with money in my bank account?
In this post I would list 10 of the safest options available to people for investing their money for a long term perspective, Investing money for a 5 year plus term would be beneficial wrto tax saving under 80c.
1.Public Provident Fund (PPF): Public provident fund investment are long term investments which are tax free and spread over a term of atleast 15 years. currently money deposited in PPF account gets interest of 8.5 - 9 percent annually. It is probably best of the option available.
Other Related must read posts:
All time great investors
Binary Options vs day trading
Top 5 android apps for Indian stock markets
Intraday Trading tips for beginners
2.National Saving Certificate (NSC): National Saving certificates have an investment duration of 10 years and give an annual return of 8-9 percent currently. It is one of the safest option available to people and is better then keeping money in saving accounts as money in saving account attract interest of just 4 percent annually.
3. Saving scheme for Senior citizens: SCSS or Saving scheme for senior citizens is money investment scheme for senior citizens and attracts interest of over 9 percent annually, which is highest among all the 10 money investment options available. Money invested in SCSS falls under 80C investments and is for a duration of ten years. Interest earned by a person is however taxable under normal tax slabs for senior citizens.
4. Recurring Deposit: Recurring deposit is another safest option for investing your money and get good returns of 8-9 percent annually. Another merit of putting your money in recurring is that money goes in form of installments per month and hence is less burden on account. You can invest for a period ranging from 6 months to 5 years in recurring deposit. Interest earned through recurring deposit is taxable if it is over 10000 INR per annum.
5. Savings account: This is probably last option which one would choose if he has money for investing. Keeping money in savings account earns least interest of mere 4 percent per annum. Interest earned in taxable and this option doesnot fall in 80C declaration. Some of the banks like Kotak gives interest of 6 percent on savings account provided you maintain minimum of 100 thousand rupees balance in your savings account.
6.Fixed deposits with bank: Keeping money in fixed deposits or FD's is most common method which is used by people to earn more interest then savings account. Interest earned is taxable under normal tax slabs. Another advantage with fixed deposits is that you can liquidate part of the investment if you want money for some purpose. In this case bank would give interest earned till the time of liquidating part of fixed interest by applying just 1 percent of penal interest. Fixed deposits is best option for small investors as you have lot of flexibility for the time duration which ranges from just 7 days to 10 years.
7.Tax saving FD: tax saving fixed deposits is for a tenure of 5 years and fall in category of 80C investments. Money is locked for 5 years and you cannot liquidate it before full tenure is over. You can declare money invested in Tax saving fixed deposit under 80C limit of 150,000 INR tearly. Interest earned is similar to normal FDie 8-9 percent depending on bank in which you have account.
8.Post office monthly investing scheme: You can also invest your money in post office schemes which generally have interest rates that are similar to normal FD deposit. ie ou can earn between 8-9 percent annually. Income earned from interest is taxable under normal tax slabs rates.
9.Systematic investment plans (SIP): Mutual funds investing is linked with stock markets, hence there is uncertainity involved. If you donot want any uncertainity about the returns then SIP is not for you.
10.Fixed deposit funds: FDF's are similar to Mutual funds investing and have a tenure of 1 year or above. Interest earned is more then FD, but there is slight risk involved
Hence concluding this post: It is quite evident from these ten investment options that if a person wants zero risk on return of investment then he/she can chooe any of one from first 8 options. These are the safest investment options available to person as these investments are not linked to volatile stock market investments. It's for those who want complete peace of mind and doesnot bother earning 2-3 percent less(compared to Stock markets average yearly returns).
Found this post helpful? Like us on facebook Facebook page
HAPPY INVESTING!
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