- By Aditya Pratap Singh
- Thu, 24 Oct 2024 08:49 AM (IST)
- Source:JND
Risk-Free Investment: Investing can often feel risky, particularly due to the frequent changes in the stock market. However, there are several stable investment options where investors can get guaranteed and risk-free returns. These options provide consistent returns, making them perfect for those seeking both security and a steady income. Some of the finest safe investments that guarantee returns and provide various advantages are listed below.
1. Bank Fixed Deposits (FDs)
Bank fixed deposits (FDs) are one of the most trusted and popular investment choices. Interest rates are determined at the time of investment, ensuring stable returns. Your investment is safeguarded by the government, up to Rs 5 lakh. This feature makes FDs a popular choice for risk-averse investors seeking security and guaranteed returns.
2. Recurring Deposits (RD)
Recurring deposits (RDs) are an excellent approach to gradually build wealth. With RDs, you deposit small amounts regularly, and over time, they add up to a significant sum. RDs provide higher interest rates than regular savings accounts and help you to develop disciplined saving habits. This is an excellent option for those with modest incomes who want to save consistently while earning consistent returns.
3. Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a long-term, tax-saving investment scheme backed by the government. It pays an annual interest rate of 7.1% with a maturity period of 15 years, and contributions are eligible for tax deductions. Both the principal and interest are tax-free after maturity. PPF is a good option for those seeking a secure retirement and consistent, long-term returns.
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4. Post Office Monthly Income Scheme (POMIS)
The Post Office Monthly Income Scheme (POMIS) is worth considering if you are seeking a steady monthly income. It provides a guaranteed investment with regular payouts, with an interest rate of 7.4%. This makes it an excellent choice for retirees or anyone seeking a steady income while protecting their initial investment.
5. RBI Floating Rate Savings Bonds
The RBI’s floating rate savings bonds are a reliable option for those interested in government-backed bonds. The bonds mature in seven years and provide an appealing interest rate of 8.05 per cent. There is no maximum limit on the amount you can invest, and you can start with Rs 1,000. It’s a safe and flexible choice, especially for long-term investors seeking stability.
6. National Savings Certificate (NSC)
National Savings Certificates (NSCs) are another government-backed investment that provides both security and consistent returns. NSCs currently provide an interest rate of 7.7% and come with tax benefits under Section 80C of the Income Tax Act. Certificates have a fixed maturity period and guarantee virtually risk-free returns, making them a reliable investment choice.
