Plus and minus points of various debt investment products and whom they will suit


With banks slashing fixed deposit (FD) rates, investors are looking for alternatives.

However, while chasing higher returns, you should not ignore safety or tax implications.

ET Wealth explores various debt products to help you choose the one most suitable.

1. 5-year bank fixed deposits

12-1


Caution: Smaller banks offer better rates. However, weigh the risks before investing.

2. Tax saving fixed deposits

12-2

Caution: Smaller banks offer better rates. However, weigh the risks before investing.

3. 5-year company deposits

12-3


Caution: Risk increases with smaller banks, but risks multiply with smaller and weaker companies. So, restrict investments only to AAA rated companies.

4. Senior Citizens’ Savings Scheme

12-4

5. Sukanya Samriddhi Yojana

12-5

6. Public Provident Fund

12-6

7. National Savings Certificate (NSC)

12-7

8. Voluntary Provident Fund

12-8

9. Listed tax-free bonds

12-9

10. RBI bonds

12-10

11. Debt mutual funds

12-11

12. Pradhan Mantri Vaya Vandana Yojana

12-12

Note: Though a pension plan, this works like an FD; Invested amount returned after 10 years or at the death of insured.

Click here to download ET Online’s guide to everything personal finance in the times of Covid-19





READ SOURCE

READ  The shift away from Libor could threaten stability

LEAVE A REPLY

Please enter your comment!
Please enter your name here