The global epidemic has surely taken a toll on the economy and the market. The current scenario has absolutely made it a dicey choice to invest. Due to that, investors are inclining towards investing in schemes which involve lower risks and good returns with high rates of interest. Such schemes help in riding out the present volatility in the market and are even considered to be most suitable if you are a beginner in investing field, so we have presented the best of the investment options involving lower risks in this article.
- Bank Fixed Deposit (FD)
Bank Fixed Deposits are considered to be a safe investment option involving lower risks and give good returns with high rates of interest. Usually, FDs provide tax benefits under Section 80C of the Income Tax Act. Often, the minimum period considered for investing in FD is considered to be 7 days and a maximum period for investing an FD is considered to be around 10 years.
- Public Provident Fund (PPF)
Public Provident Fund (PPF) is one of the most popular schemes among people. PPF is a long-term investment of around 15 years. PPF is known to generate a steady flow of income. The minimum amount considered for opening a PPF account is Rs. 500 and the maximum amount considered for opening a PPF account is Rs 1.5 Lakhs. The account can also be opened on behalf of a minor.
- Recurring Deposit (RD)
Recurring Deposits are known to be offered by banks that help investors to invest monthly in a fixed amount for a certain period of time. The minimum period considered for investing in RD is six months and the maximum period considered for investing is ten years. Tax Deducted at Source (TDS) is valid for Recurring Deposits.
- National Pension Scheme (NPS)
National Pension Scheme (NPS) is offered by the Government of India and is regulated by Pension Fund Regulatory and Development (PFRDA). It is specifically designed to facilitate financial concerns of people after retirement. There is also the availability of Income Tax benefits under certain sections under Income Tax Act 1961.
- Postal Savings Schemes
Indian Post Offices provide different schemes for investors that offer secure returns and high rates of interests. Such schemes usually provide Income Tax Benefits under different sections under the Income Tax Act 1961. Accounts opened under such schemes are transferrable from one post office to another over the nation. Some of such schemes are mentioned below:
Savings Account
Sukanya Samriddhi Scheme
Senior Citizen Saving Scheme
National Savings Certificate
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