Bajaj Finserv
Bajaj Finserv

Smart ways to gain returns up to 9.10 percent on your investment

ANI | Updated: Apr 30, 2019 17:00 IST

Pune (Maharashtra) [India], April 30 (ANI/BusinessWire India): Choosing the right investment schemes can help with long-term wealth creation. While there is no dearth of investment options available, investors often struggle to choose the right avenues that are dovetailed to their needs. If you’re looking to boost your net gains and make profitable investments this year, here are some golden tips to get started.
Make contributions to a Voluntary Provident Fund
A Voluntary Provident Fund works as an extension of a regular Employee Provident Fund. To sustain a VPF account, you need to make contributions above and beyond the 12 per cent that goes towards your EPF. If you have just received a salary increment, this is a great way to invest surplus amounts as your contributions get invested even before you get your salary.
This is also an excellent tax saving instrument as it enjoys all-round EEE tax benefits. This means that your contribution, principal, and interest are all exempt. Finally, the interest you earn is the same as what you get on your EPF, which is currently, 8.65 per cent.
Keep a close eye on the Interim Budget
While you may want to get all your tax planning done right at the start of the financial year, you are better off stalling some of it until you know if the proposed interim budget tax changes become a reality. The full-year budget is due to be rolled out in July, post the general elections.
For example, if the tax rebates on gross incomes up to Rs 5 lakh are approved, and you fall in the bracket, then instead of investing in tax-saving instruments, you can invest in investment options offering higher returns, such as Bajaj Finance fixed deposit.
Similarly, if the TDS exemptions on bank FDs of up to Rs 40,000 for regular citizens and up to Rs 50,000 for senior citizens get approved, then you can reduce your tax liability by submitting form 15G or 15H to your issuer.
Invest your finances in a high-interest fixed deposit
If you want to steer clear of market fluctuations, then investing in a fixed deposit is the best option for you. Recent research has shown that FD was the best performing asset class in 2018, yielding returns at an average of 6.25 per cent, especially as returns by market-linked investment instruments continued to dwindle.
The average rate of returns are higher for company FDs, as you can get rates of up to 8.75 per cent for new customers and up to 9.10 per cent for senior citizens on Bajaj Finance fixed deposit taken for at least 3 years with interest payout at maturity. Since the returns are assured, you can compute them and plan your finances well by using Bajaj Finance fixed deposit calculator online.
The RBI had recently cut repo rates by 25 basis points and lowered them to 6 per cent. Being the second repo rate cut 2019 has seen, you can expect FD rates to take a dip sometime in the future. So, if you are seeking to open an FD then its best that you start your FD investment online while the interest rates ride high.
This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article. (ANI/BusinessWire India)