Owing to rise in interest rates in India, there are very good fixed income options available today. Few are discussed below:
Bank Term Deposits:
Few Banks are offering very good interest rates for deposits of more than a year duration. You can get more than 8.5% to 9% return on such investments.
Bank Term Deposits:
Few Banks are offering very good interest rates for deposits of more than a year duration. You can get more than 8.5% to 9% return on such investments.
- For Senior Citizens, it is 0.25% to 0.5% higher
- Some Banks don't even charge penalty in case of premature withdrawl.
- Some Banks provide monthly, quaterly, half yearly, yearly compoundedly, so the return can differ.
- Now, that there is tax benefit for 5 yrs+ Fixed Deposits under Section 80C gives lot of advantage to Fixed Deposits.
- Much safer option compared to Equities. Regular return with peace of mind.
Post Office MIS:
This is another good option for those who are interested in regular monthly income. This is very good and safe investment for senior citizens.
This is another good option for those who are interested in regular monthly income. This is very good and safe investment for senior citizens.
- Interest rate of 8.5% per annum payable monthly.
- Maturity period is 5 years.
- Minimum investment amount is Rs.1000/- or in multiple thereof.
- Maximum amount is Rs. 4.5 lakhs in a single account and Rs. 9 lakhs in a joint account.
- Premature encashment facility after one year at some penalty.
- Interest income is taxable, but no TDS.
- The Only Post Office scheme where monthly interest is payable.
Personal Provident Fund (PPF):
Popular investment and tax saving option. This scheme is a statutory scheme of the Central Government of India. This is for 15 years.
Popular investment and tax saving option. This scheme is a statutory scheme of the Central Government of India. This is for 15 years.
- The rate of interest is 8.8% compounded annually.
- Interest is totally tax free.
- Tax saving instrument under section 80C.
- Loan facility available from third year.
- Withdrawl after 7th year.
National Savings Certificate (NSC):
Another popular investment and tax saving option.
Another popular investment and tax saving option.
- Rate of Interest of 8.6% compounded half yearly for 5 year maturity and 8.9% for 10 year maturity.
- Lock-in of 5 years or 10 years.
- A Tax saving instrument under Section 80C
- Interest is taxable but no TDS.
Infrastructure Bonds:
The returns for such bonds are low ~7-8%. But they are the safest. But there are few which are for 10 year period and give good returns of >9%.
Company Deposits:
There are bonds which are issued by private and public companies. The return may be >10% but the investors should carefully invest in such issues as there is a higher risk associated compared to the above options.
Company Deposits:
There are bonds which are issued by private and public companies. The return may be >10% but the investors should carefully invest in such issues as there is a higher risk associated compared to the above options.
Nice Blog..
ReplyDeleteDidn't knew Barclays was offering such a high rate of interest..
I think even IDBI is offering high rate of interest, though things might have changed just like for HSBC