When it comes to investments, a large number of people look for safe or risk-free investments that guarantee capital protection. A safe investment is one that has little or zero risks. It’s ideally suited for investors who are more concerned about the safety of their finances, rather than capital growth. The investment options listed here are ideal for retirees and conservative investors who cannot afford risks. When you park your funds in low-risk investments, you don’t have to worry about the fluctuations of the market. The returns from these high return investment in India are generally guaranteed.
1. Savings Account offered by Banks
All commercial banks offer savings accounts for customers to park their hard-earned money. While a savings account is a necessity to manage your finances like for shopping online, using a credit card/debit card, paying utility bills, it’s not the best option as an investment. This is because the returns generated from a savings bank is usually around 4% per annum.
However, if you’re looking to park your money and make frequent withdrawals safely, then a savings account is the ideal choice.
2. Fixed Deposits
Fixed deposits are undoubtedly the most popular and high return investment in India option for Indians. For decades, it was the go-to investment option for families looking to park their surplus funds securely. Fixed deposits are offered at all banks and offer guaranteed returns on maturity. It’s risk-free, and you know the amount you receive on the maturity of the deposit.
Fixed deposits can be opened for tenures ranging from one month to ten years or more, depending on the bank that offers it. The interest rates start from 6% and go up to 8.35% depending on the type of fixed deposit, amount invested and tenure.
Most banks offer several types of fixed deposits like:
Standard fixed deposits with a fixed tenure
Cumulative fixed deposits
Non-cumulative fixed deposits
Senior citizen fixed deposits
Tax-saving fixed deposits
Premature withdrawal is allowed on most fixed deposits. However, you may have to pay a small early withdrawal fee or forfeit the interest earned for a particular period, when you withdraw it before maturity. Also, you can get credit cards and loans against fixed deposits.
3. Recurring Deposits
A recurring deposit is similar to a fixed deposit. However, in an FD, the investment is made as a single deposit. In an FD, the investment is made as fixed amounts at regular intervals – say once every month.
Like an FD, recurring deposits offer guaranteed returns. The interest rate is fixed and does not change for the entire tenure. The interest rate ranges from 5.9% to 8.0% depending on the bank, the amount invested and tenure. Generally, premature withdrawals are not allowed in a recurring deposit. However, nowadays, several banks offer early withdrawal by levying a penalty.
These are some of the high return investment in India ideas that one should opt for if you are looking for higher returns for the investments you do. But you need to carry a lot of patience under you to get the results shown.
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