A lot of people nowadays look for different investment options apart from the standard bank accounts. This is because they want to earn more money in less time by getting better interests on their investments, which is not possible on the regular bank accounts.
Let me tell you that there are a lot of investment options in India. Among these, not all are safe. Thus, we have jot down the 5 safest investment options in India in which you can invest your money without any worries.
- Bank fixed deposit
A bank Fixed Deposit (FD) account is one of the safest investment options in India. This is because in this type of deposit, the RBI has directed the bank to take the deposit insurance. You can put your money in a fixed deposit account for 7 days to 10 years. The rates of return on a fixed deposit are known and fixed, without any uncertainty.
The expected rate of interest that you will get on a fixed deposit account is 8 to 9 per cent. The income from this type of investment is taxable at the investor slab. In order to avoid TDS on your FD, you can submit 15H/15G form. A fixed deposit investment is best for small investors and offers moderate returns.
- Recurring deposit
A Recurring Deposit (RD) is a special type of deposit, where a specific amount of money is deposited every month. In simple words, it is like making a fixed deposit each month. However, the return that you receive in a fixed deposit is slightly higher than what you receive in a recurring deposit.
This is because in a recurring deposit, you make your investments in installments. Recurring deposits are made for a period of 6 months to 10 years. They offer an expected return of 8 to 9 per cent. There is no TDS by bank on recurring deposits, but the interest is taxable at investor slab.
- Tax saving fixed deposit
Tax saving fixed deposit is one of the other safest investment options available in India. This is a type of fixed deposit, wherein you can save your tax. However, in this type of fixed deposit, your money is locked away for a period of 5 years. This means that a tax saving fixed deposit is for a period of 5 years.
You can receive an expected return of 8 to 9 per cent on your tax saving fixed deposit account. The investment amount in this type of deposit is deducted from the taxable income of the person with up to Rs. 1 lakh. However, the tax is applicable on the income received on the interest of a tax saving fixed deposit account.
- Public Provident Fund
A Public Provident Fund (PFF) is one of the other safest investment options available in India. It offers very good returns. However, it locks your money for a period of 15 years. This means that a public provident fund is made for 15 years with an expected return of 8.8 per cent.
In this type of investment, the investment amount is deducted from the taxable income of the person that is up to 1 lakh. There is no other fixed investment option that can match the returns that you get from a public provident fund. Moreover, the return that you get in this type of deposit is tax free.
- Monthly Income Scheme
A Monthly Income Scheme (MIS) is a post office scheme that is suitable for senior citizens or retired employees. In this scheme, you can invest any amount ranging from Rs. 1,500 to Rs. 4.5 lakh. It is one of the safest investment options in India, as it is directly managed by the Indian government.
This investment type is made for a period of 5 years. The expected return that you get in this type of deposit is 8.4 per cent. The income that you receive from the interest on monthly income scheme is taxable. Moreover, the income that you receive as the interest on a monthly income scheme account can be withdrawn by the investor on monthly basis.
These are the 5 safest investment options in India. You can invest your money in any one or more of them and thus get good returns on your investment.