Investors who don’t want to invest their money in high-risk instruments tend to opt for small saving schemes such as fixed deposit plans, recurring deposits, post office saving schemes, PPF, etc. to keep their investments safe from market risks. However, the safety of capital should not be the only criteria to invest in any instrument as capital appreciation is also equally important. Therefore, we have brought these 5 best saving schemes in India that also ensure surplus returns:
National Pension Scheme
NPS or National Pension Scheme is a pension scheme run by the government of India. It invests your money further in liquid funds, corporate bonds, fixed deposits, etc. and offers high returns at maturity.
You can start investing in NPS from an early stage so that you save enough money in it till retirement. Around 60% of the interest accrued corpus is paid after retirement and the remaining 40% goes into an annuity that will provide a monthly pension. However, it is a long-term saving scheme and its withdrawal policies are not flexible.
PPF
Public Provident Fund or PPF is another government-backed saving scheme that provides a high interest rate and sufficient returns at maturity. It comes with a lock-in tenor of 15 years which means that it is not an ideal investment scheme if you are looking for short term investments.
SCSS
If you are above 60 then you can invest in SCSS i.e. Senior Citizen Savings Scheme as it provides a lucrative interest rate and comes with a lock-in period of 5 years. The interest that you earn is fully taxable but you will be eligible for a deduction of up to Rs. 1,50,000 as per Section 80C of the ITA, 1961.
SDP
If you are planning to invest in RDs but also wish to have the flexibility of FDs then you can think of the SDP i.e. Systematic Deposit Plan of Bajaj Finance. As per this deposit scheme, you only need to deposit Rs. 5000 every month for 6 to 48 months as per your financial limitations and needs.
You can pick the same tenor of up to 60 months for every deposit or choose a single date of maturity to receive all the maturity proceeds at once. This is a happening investment option if you have just started earning or don’t want to commit a lump sum amount in an FD.
Fixed deposits
Fixed deposit schemes offered by finance companies can prove to be more profitable as bank FDs are not offering high interest rates these days. For instance, Bajaj Finance FD is providing an FD interest rate of up to 7.25% that is the highest in India today. Also, it is a safe instrument as credit rating agencies have given it high ratings when it comes to providing stability to the investor’s deposits. The benefits that make it one of the best investment options in India are explained below:
Higher FD rate to senior citizens – Senior citizens are eligible for a 0.25% higher interest rate than regular investors. This means that their returns will be slightly better than others. If you don’t qualify for this additional FD rate then you can opt for the online application process via an online FD form to earn a 0.10% extra FD rate.
NRI FDs – Even NRIs and overseas citizens can invest in this FD scheme now as Bajaj Finance is offering a high interest to them as well. If you qualify under these categories then you will have to invest via an NRO account and you will be eligible for an interest rate of up to 7%.
Tenor flexibility – A flexible tenor ranging from 12 to 60 months will allow you to pick a tenor that suits your investment plans. With the multi-deposit feature, you can deposit in multiple FDs to obtain better liquidity and you may also get the opportunity to club returns of more than one FD in a higher paying FD in the future.
RDs, post office saving schemes, PPF, NPS, etc. are some of the best saving schemes in India. However, if you are looking for a better option, then fixed deposits offered by the Bajaj Finance FD scheme can come in handy. This is due to the high interest rate and flexible investment options that help you to plan your finances smartly.
Even NRI FDs are available for non-resident Indians and the higher FD rate to senior citizens make it a profitable option to individuals above 60. You can also invest in Bajaj Finance’s SDP that enables you to avail the benefits of FD with the flexibility of investment that an RD provides.