Personal finance

PART – 1

Investing doesn’t require a large sum of money to begin, you can start with what you have and slowly build a habit of investing with your savings.

Here are some of the best investment options for small savers

High-Interest Savings Account

It is the simplest and safest investment option. Choose a bank that offers higher interest rates than a traditional savings account and invest in it. It is the best option for first-time investors who looking for a safe place to invest.

Recurring Deposit

It is a secure and disciplined way of saving. A recurring deposit lets you invest a fixed amount monthly for a tenure ranging from six months to ten years depending on the bank.

It is a flexible and secure investment option as you can start investing with a minimum amount of a hundred rupees. It is best for goal-oriented and regular savers.

Choose a bank or post office with high interest rates calculate how much you can save monthly, select tenure, open an RD account and automate monthly transfers from your savings account.

Government-backed Savings Schemes

Government-backed savings schemes are the safest and most reliable investment options. They offer guaranteed returns, and tax benefits and are flexible for short, medium and long-term goals.

Here are some options flexible for Short-term term goals ( upto 5 years)

National Saving Certificate

It is the best option for Individuals having Short-term goals and the minimum deposit is ₹1000.

National Savings Recurring Deposit Account

The minimum amount is ₹100 and there is no maximum limit. The tenure is five years.

National Savings Time Deposit Account

The Minimum amount is ₹1000 and there is no maximum limit. The term is for five years.

Post Office Monthly Income Scheme

It is the best option for individuals seeking regular monthly income. The minimum deposit amount is ₹1000. The tenure is five years.

Investment Options for Medium-Term Goals

Sovereign Gold Bonds

These are government securities denominated in grams of gold. These are substitutes for physical gold. The minimum investment in the bond is one gram with a maximum limit of 4 kg for individuals. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.

Investment options for long-term goals

Public Provident Fund

It is the best option for individuals having long-term goals.The minimum deposit is ₹ 500 and the maximum deposit is ₹1, 50,000. The maturity period is 15 years. It is ideal for individuals with a low-risk appetite.