Investment in Bank FD is now an old thing! Here you are getting much more returns

 

Fix Deposit (FD) has gained a lot of popularity in our country due to being a more secure investment option, but now people are less attached to FD. The main reason for this is declining interest rates. For the last one or two years, interest rates on FDs have come down by three to four per cent. Earlier, where major banks used to pay more than seven per cent interest on FD, they are now offering less than five per cent. In such a situation, people are looking for other options for investment.

 

FD is considered a small-time investment option. Most customers prefer to invest in FDs for two to five years. There does not seem to be any more secure high-return investment option in this period. One option we can see is debt mutual funds, but here too the returns have been reduced from previous months. Therefore, experts believe that now if customers want a more secure investment option, they will have to invest for a longer period.

 

There are many options available in the market for investors seeking higher returns with greater security. Today we will talk about these major options. The first is the Voluntary Provident Fund (VPF) and the second is the Senior Citizen Saving Scheme.

 

Voluntary Provident Fund (VPF)

 

Every month 12% of the basic salary and DA from the salary of salaried employees is deposited in the Employees Provident Fund (EPF). At the same time, the employer also deposits the same amount in the EPF account of the employee. If employees invest more than 12 per cent of their salary in the PF fund, then it is called Voluntary Provident Fund (VPF). VPF also gets interest at the same rate as on PF. As per the rules, any salaried employee can deposit his basic salary and DA up to 100 per cent in VPF. The VPF is currently receiving an annual return of around 8.5 per cent. Like EPF, VPF also has the benefit of tax exemption.

 

Senior Citizen Saving Schemes (SCSS)

 

It is also a government-backed investment scheme. This scheme is for people above 60 years of age. The scheme currently offers interest at the rate of 7.40 per cent. In this scheme, a maximum investment of Rs 15 lakh can be made in multiples of Rs 1,000. The interest in this scheme is payable every quarter, so it can be used as regular income. The SCSS account matures in five years, after which it can be extended for a three-year block.