8 Best of Fixed Income investments to deal with

By | February 8, 2018

If you are worrying about falling bank rates, FD rates, stock share marking fall and falling of mutual funds & other small saving schemes of Government of India then here are some of the best plan options that you can consider to avail fixed monthly/yearly income.

Investment Options

Investment Options

8 Fixed Income Investments to acknowledge

Interest Rate Investment Tenure Age Factors Money Invested Taxation Best for
Voluntary Provident Fund  (VPF) 8.65% Same as EPF No limit As per salary 80C benefit available, Tax Free interest Accumulating long term wealth with NO Risk
Listed PSU Banks (SBI Bond) 8.55% 8 years No limit No limit Taxable interest and capital gain Investor who need regular income & are in lower tax brackets
Senior Citizen’s Saving Scheme (SCSS) 8.3% 5 years but can be extended for 3 more years Above 60 years (55 for early retires) Rs. 15 lakh or money received as retirement benefit, whichever is lower 80C benefit available, but Interest is taxable Senior citizen who need regular income
Sukanya Samriddhi Yojana (SSY) 8.1% Deposit till girl age of 14 and maturity at 21 0 to 10 years Max Rs. 1.5 lakh a year 80C benefit available, Tax Free Interest Long term gain for girl child without any risk
Pradhan Mantri Vaya Vandana Yojana (PMVVY) 8% 10 years Above 60 years Upto Rs. 7.5 lakh per family No 80C benefit, Taxable pension Senior citizen who need regular income
Savings Bonds (RBI bonds) 7.75% 7 years No limit No limit No 80C benefit, Taxable interest Investor who need regular income
Public Provident Fund (PPF) 7.60% 15 years (can be extended via 5 years blocks) No limit Max Rs. 1.5 lakh per year 80C benefit available, Tax Free Interest Accumulating long term wealth with NO risk
Listed PSU Bonds 6.29% 9 years No limit Coupon rates will be 25 bps lower if holding in each series goes above Rs. 10 lakh Taxable capital gain, but Interest is Tax Free Investors who need regular income and are in higher tax brackets

 

Points to consider while investing in FIXED income Options:

  1. Liquidity
  2. SLR Rule
  3. Safety
  4. Capital Gain
  5. Coupon Rate and Yield
  6. Returns

So if you want regular fixed income and don’t want to take any rink while investing you money then you can choose any of the above fixed income option to proceed.

 

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