Saturday, 24 September 2011

High Income from safe and secure investments

Investors are looking for getting high income from their investments and at the same time the investment must be safe and secure. This is the right time to invest your hard earned money in safe high income investments.

The Reserve Bank of India is controlling the money market to control inflation; the banks are trying to get maximum benefit out of it. They are increasing the interest rate. But the common man who has taken bank loans such as home loans, personal loans etc. are really in trouble form the increasing EMI (Equated Monthly Installments) or extending number of installments of their loan repayment.

But when the bank rate is increasing the interest rate of bank investments including fixed deposits also will be increased and this is a good chance to the investors those who like to invest in safe investments. Bank fixed deposits are the safest and secure deposits which can earn a good interest income at present.

The volatile stock market and uncertain mutual funds confuse the investors and at the same time they reduce the wealth of investors. But here in bank fixed deposits, there is no such volatility and uncertainty. You will get the same interest they offered at the time of opening a fixed deposit. At present the rate of fixed deposit is very high and you can enjoy maximum benefit from your investments.

Long term fixed deposits offer highest interest rate and one can deposit for a long term to get maximum benefit for your investments. Retired persons and serving people can get benefit from the current situation. IF you are a person who get a regular income like salary or rent also can start a recurring deposit with bank and can get benefit from this situation. If you invest Rs. 500 per month in recurring deposit for 10 years you can make around Rs. 1 lakh from the total amount of Rs. 6000 you have deposited in 120 months.

Both this recurring deposits and fixed deposits have liquidity also. Whenever you need money, you can withdraw these deposits with a small percentage of penal interest or reduced interest rate. You need not wait to raise the market.

Interest from bank fixed deposit it taxable and if the interest is Rs. 10000 or more, bank will deduct TDS (Tax deducted at source). If you have not taxable income for the financial year (income of Rs. 180000 for gents, Rs. 190000 for Ladies, Rs. 250000 for senior citizens- 60 years and above and Rs. 500000 for Very Senior Citizens – 80 years and above) you should submit Form 15H or Form 15Hg as the case maybe form not deducting TDS from your interest income.

This time of increasing bank rate avail maximum benefit from this special situation by investing in bank deposits.

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