Saving money is a habit that each one of us should practice. There are various options available in the market for you to invest your money in. To do that, you should carefully read all the terms and conditions of the investment scheme and then invest your money. In which do you invest your money also depends on the term period for which you want to invest it and the guaranteed return you get on it. Rather than keeping the money in the bank account, you should invest it with so many opportunities available. Here we take a look at the some of the most fruitful investment options available in the market.
- Fixed Deposits: Investing money in a fixed deposit account is one of the safest investment options out there. The term period for a fixed deposit account ranges from 6 months to 10 years. The rate of return also varies accordingly and as per the bank. Different banks offer different rates of return. It also varies depending on whether you are a regular citizen or a senior citizen. Usually fixed deposit accounts offer a higher rate of return than your usual savings account. The rate of return generally varies from 4%-7%. The amount earned as interest is payable by the financial institution 3 months from the date of deposit.
- Recurring deposits: Recurring deposit is one of the safest investment options out there. If you want to invest your money in a scheme periodically with guaranteed returns, recurring deposit scheme is for you. The rates of returns offered by the financial banks on this scheme is also usually greater than the recurring deposit account. To receive the maturity amount, the depositor has to deposit the money periodically. If the depositor fails to make payment, there is a penalty charge levied by the bank or the financial institution. The term period for a recurring deposit account ranges from 6 months to 10 years. Tax Deducted at Source (TDS) is applicable for recurring deposit accounts. You can check Bankbazaar to know more about Recurring Deposit
- Liquid funds: Liquid funds are a type of mutual funds in which the depositor’s money is invested in treasury bills, government securities and call money. These investment opportunities have the least risk involved. The maturity period of these type of mutual funds is 91 days. Some of the advantages of investing money in liquid funds are as follows:
- In liquid funds, the money is invested in mutual funds that have high credit rating. This means that the returns are almost guaranteed.
- The Net Asset Value (NAV) of liquid funds is not volatile and does not change frequently.
- They also different from ultra short term funds because they have a maturity of over three months.
4. Exchange Traded Fund (ETF): Exchange Traded Fund investment plan is a combination of
stocks and mutual funds. This plan protects the people who have invested in it from the
inflows and outflows of investors. It is an investment plan with high returns and if your
Predictions are accurate, you could get huge returns.
