Several people invest a part of their income in their savings account. While the savings account is an excellent way to earn returns, it is certainly not the only way. In this write-up, we provide you valuable tips of the different schemes that you can have a look at and invest in.
It is a general practice among the middle-class families to set aside a certain portion of their income and keep it safe in their savings bank account. While it is a good practice, you must know that the bank savings account do no offer very attractive returns. So, if you are looking for different investment options that offer you good returns, you can consider investing in the following investment schemes:
Although it may sound quite a traditional method, the post office offers excellent monthly income scheme, which offers assured returns up to 8% per annum. The post office monthly investment scheme requires you to invest a certain amount of money for a limited period just like the recurring bank account. The investment period is usually five to 10 years; however, you can also invest for a longer duration. At the end of the term, you would get the principal amount, the interest accrued over the years as well as a 5% bonus.
It’s one of the most popular and common ways of investment. Under this investment scheme, you have to invest a lump sum amount upfront, and the money will be locked in for a given period. The rate of interest varies from bank to bank but it typically lies in the range of 7% to 9% per annum. The fixed deposit investment is probably the safest investment scheme and is best suited for people with low-risk appetite.
Senior Citizen Scheme
This scheme as the name suggests itself targets people of 60 years and above and is suitable for retired professionals. This investment scheme has a maturity period of about five years, which if need be can be extended for three years. The interest rate offered under the scheme is about 9%, and the interest is payable every three months.
SWP or Systematic Withdrawal Plan
Today, several Indians consider mutual fund schemes to be the most popular investment option. If your motto is to get regular monthly income, you can consider investing in debt or equity mutual funds by selecting systematic withdrawal plan. This plan is the exact reverse of SIP (systematic investment plan); under this plan, you can withdraw or sell a fixed number of mutual fund units in the market.
Long-term government bonds
A long-term government bond is one of the safest and the most secured investment option for people who wish to gain regular income. The government bonds typically offer about 7-8% returns half-yearly. However, these bonds have duration of 5 to 10 years, and at the end of the tenure, you get your principal amount as well as the interest. Another significant advantage of these bonds is that you can trade them in the secondary market as well as sell them off if you want to get rid of them.
Annuity from Insurance
Insurance is a necessity but what if you can get protection as well as earn income from your insurance. This is possible using annuity from insurance, but you need to know that it would take time to earn returns from annuity. The returns too vary depending on the duration of the pension and the option you chose while buying the product.