Safe Investment Tips: Many times people invest money directly in Bank Fixed Deposit (FD) to protect their hard earned money. But nowadays the returns from normal bank FDs have become quite limited. As for the country’s largest bank, State Bank of India (SBI), here the common man is getting only 6.05% to 6.40% interest per annum on 1 to 5 year general FDs (while it remains in the range of 3.05% to 6.40% throughout the tenure).
If an investor shows some wisdom he can earn a handsome annual profit of up to 8.20% through government or banking schemes without any credit risk. These plans are 100% safe. There is no risk of losing even a single rupee in this. From SBI special schemes to post office or RBI options, there are 4 great schemes that can grow your savings much faster than a normal FD.
SBI MOD Scheme for sudden cash needs
Generally, when one needs money suddenly, he has to break his entire FD. Banks also charge penalty for premature break of FD. To avoid this pitfall, SBI’s Multi Option Deposit (MOD) scheme is a great option. This is a term deposit that is directly linked to your SBI savings account. In this, excess money beyond a certain limit is automatically converted into FD through auto-sweep.
Its biggest feature is its high liquidity. Whenever you need money you can withdraw money directly through ATM or UPI. By doing this, your entire FD is not destroyed, instead only small chunks (like in multiples of Rs. 5,000) come out as needed. On the balance in the account, you get full interest from 6.05% to 6.45% like regular FD. This is the best way for those who have an emergency fund.
Amrut Vrishti Yojana to get more profit in less time
If you want to park your money in a safe place for around one and a half years, SBI’s ‘Amrut Drishti’ scheme can offer more benefits than a normal FD. This is a special fixed deposit scheme of SBI for 444 days. Compared to normal FDs of 1 to 2 years, the bank is offering higher interest to the customers in these. Under this scheme common citizens get a fixed interest of 6.45% per annum. While for senior citizens the rate is 6.95% per annum. In addition, senior citizens above the age of 80 years are given an excellent return of 7.05% per annum. In this only standard FD rules for liquidity apply.
8.05% return on investment in RBI Bonds without limit
Floating Rate Savings Bonds (FRSB) of the Reserve Bank of India (RBI) are a strong option for those looking for long-term risk-free fixed cash flows. These are sovereign bonds issued by the Government of India, with 100 percent government guarantee. That means the risk of default remains absolutely zero.
The interest of this scheme is linked to National Savings Certificate (NSC), with 0.35% additional interest available at the rate of NSC. Its interest rates are revised every 6 months. Currently, this bond is fetching a bumper interest of 8.05% per annum. This is two percent higher than SBI’s 5-year FD (6.05%). The lock-in period of this bond is 7 years, though some relaxation is given to senior citizens. The best part is that there is no maximum limit to invest in it.
Interest up to 8.20% with tax exemption in post office schemes
India Post’s Small Savings Schemes are always trusted to provide the highest guaranteed returns with a secure investment. While SBI’s 5-year FD pays only 6.05% interest, Post Office’s 5-year Time Deposit (TD) pays 7.50% per annum. Along with this, the individual also gets the full benefit of tax exemption under Section 80C of Income Tax. There is also a facility to withdraw money after 6 months with certain conditions.
At the same time, the Post Office Senior Citizen Savings Scheme (SCSS) is considered to be the country’s best risk-free scheme for senior citizens at home. In this government scheme, senior citizens are getting an interest guarantee of 8.20% per annum, which is much higher than the normal FD of any major bank.
