Scared of losing your money? Here are 100% safe options for investment
Amidst the ongoing issue of PMC bank fraud, the issue of safety of money in the banks has once again emerged. Though depositors have a backup inform of “Deposit Insurance”, it is limited to 1 Lakh per depositor only. Read our detailed article on “Deposit Insurance” here.
Thankfully there has not been any
instance in last 2 decades where a scheduled commercial bank had collapsed and
depositors had lost their money. There were instances of bank failures but they
were merged with other banks and thus no depositor lost their money. Even in
PMC bank case, amount that can be withdrawn was raised to Rs 40000 now which
will cover more than 80% of depositors and about 90% of retail depositors.
However, if you are looking for
100 per cent assurance and safety of the entire principal invested, then there
is no option but to go for government-backed investments schemes.
1. GOI 7.75% Bonds
Government of India issues 7.75
per cent Savings (Taxable) Bonds with a tenure of 7 years. Note as RBI is reducing
rate each quarter, from last 1 year, this investment option may appear
attractive to long term investors. The interest is paid either half-yearly or
on maturity and is taxable in the
hands of the investor. An investment of Rs 10 lakh invested would become Rs
17.03 lakh in 7 years, under cumulative option.
2. Post office schemes
RBI has cut interest rate for 5th
time in a row this month. However, the government has kept the Post office
small savings interest rate unchanged for the quarter ending December 2019. Refer
article on “Interest rates for Small Saving Scheme here.
This gives an opportunity for
investors to lock-in funds at competitive rates for a longer duration.
Incidentally, India Post has recently introduced mobile banking facility for
post office savings account holders through which they can invest in PPF, Time
Deposits etc. Read more on mobile banking here.
You can read on one of the post scheme “Sukanya Samriddhi”
here.
3. Government securities
Government securities by definition
are backed by sovereign guarantee and thus are entirely safe. This, however, is
subject to the condition that the investor holds them till their maturity. G-
Sec can be bought or sold in the secondary market i.e. through NSE platform and
may result in loss or gain depending on the price of the bonds. Once held until
maturity, the investment is 100 per cent safe for the investor.
4. Pradhan Mantri Vaya Vandana Yojana (PMVVY)
PMVVY is offering a guaranteed
return of 8 per cent for 10 years and one can get a regular income on a
monthly, quarterly, half-yearly or on a yearly basis. The PMVVY scheme is
government-backed and is available only with LIC. The last date of PMVVY is
March 31, 2020. Note the total amount of pension under all the PMVVY policies
allowed to a family cannot exceed Rs 1.2 lakh per annum
About Us
We are a neo advisory firm that believes in Goal based investment. We offer advisory services in Mutual Funds and retirement/ Life insurance domain. For any clarification / investment needs call us on +91 9325295502.
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