Show me the money, honey. No, actually, give me the money! On a practical note, with petrol, gas and real estate prices rising, salary isn’t always enough to survive. With the help of loan and accounting knowledge that he has, at my age, my father started investing in our dream house and 2 years later, we were living in a beautiful 2 storey bungalow on the main road but I can’t even think about it. However, I also realised that if I knew how to make the right investments as much as my father did, I would be able to fully use my salary.
I, then, went ahead and did some research about investments that we can easily make before we turn 30 so that in the time of need, we actually have a substantial amount. Some options were so convincing that I only regretted not investing earlier. But it’s never too late, so I found some easy-to-make investment options I would like to share with you as well.
We are often worried if an investment we are making is safe or not and I understand that feeling so here are some low-risk investments you can make.
MIS is risk-free and helps us get decent returns. With this scheme, the income is fully taxable, hence the returns are lower than other schemes but it doesn’t attract any TDS. At the moment, the interest rate of the Post Office Monthly Income plan is 7.3 per cent, which is good. This is one of the safest options for Indians as it is backed and guaranteed by the government of India.
PPF is one of the favourite investments made by individuals on salary. Out of its many advantages, the most important one is that it saves tax on your salary. Secondly, it provides tax benefit under Section 80C of Income Tax Act. In short, it helps you save for retirement.
At the moment, the interest rate for this one is 7.6 per cent. So that’s great.
This fund, however, has a few limitations. There’s a lock-in period to the amount submitted, which means you don’t have the liberty to withdraw the money anytime. You’ll have to let it be for at least six years. In case of premature withdrawal, you can lose up to 50% of the amount. Another issue is that the government changes the interest rate quarterly.
It’s safe and offers a good interest rate. It offers an interest rate of 8.5 per cent on its 12 to 24 months deposit. If you opt for a 24 to 36 months deposit, you can get an interest rate of 8.75 per cent. As compared to other banks that are offering 6 to 7 per cent of interest rate, this one is pretty decent and safe.
Backed by the government of Kerala, this investment allows you to earn up to 8.25 per cent interest over the period of 1, 2 and 3 years. However, the only issue here is that the investors need to courier their form to Kerala as the company doesn’t deal through brokers. The deposits are safe and the bank has plenty of branches in Kerala. For a short-term investment, this is one of the best options.
Over a tenure of 33-40 months, these FDs offer the high-interest rate of 8.75 per cent if you apply online and are completely safe. For a period of 15 months, the deposit interest rate drops to 7.95 per cent. Smaller the bank, the higher the interest rate which can go up to 9.50 per cent depending on your State.
Now you know it, go and save people!
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