We are in the middle of the financial year 2015-16. So you might have already done or are looking for the best tax saving & risk free investment options in India.
Many of us have done huge investments in LIC policies, Bank FDs and many other tax saving financial products to save tax at last moment. With this kind of practice, sometimes we have to take some decisions which we might repent later on.
So for the next year financial planing, you can start planning from the beginning. If you simple research on the available financial products in current market where you can save tax and also investment will be safe and secure then there are couple of options.
Here we are going to discuss about the Bank Fixed Deposit schemes. These are one of the most secure & risk free Investment Options in India. This tax saving product provide you a fixed income for a fixed tenure term.
Bank Fixed deposits: Risk Free Investment Options in India
In these kind of schemes, you can invest maximum of 1 lakh amount in any bank. Mostly you will get an average interest rate of 9% per annum. There is a locking period of 5 years. You can pay the amount on monthly basis, quarterly or yearly basis also. You can even start a Fixed Deposit scheme with joint names but only the first holder will get tax benefit.
You can save tax under section 80C up to maximum Rs 1 lakh. If you are in 10% bracket then you can save up to Rs 10,000/-, if you are under 20% bracket then you can save 20,000/- etc.
Disadvantages of bank fixed deposit
There are also couple of limitation of such investment but it will hardly matter if you look for secure and a long term result. You cannot exit from such schemes before 5 years maturity. This is a fixed locking period. Some banks also offer 10 years period. Also, you cannot take any loan against these schemes. In case your investment options get matured, you have to invest freshly further. Means it will not get renewed or continue after the specific tenure.
Top 10 Latest Bank Fixed Deposit Interest Rates in India
So if you love to do things on time and with perfect planning and also you are a low risk investor then Bank Fixed Deposit schemes are the Best Tax Saving & Risk Free Investment Options in India for you. You can start planning for them right now for the next year income tax planning.