As a woman, you need to build a corpus for your future while managing your short-term financial goals. You must also invest in the instruments that provide easy liquidity in times of need. Considering the wide range of investment options available in India, select only those options that go in alignment with your investor profile and investment objectives.
Here are some investment alternatives that we think are profitable for women:
Investing in an NPS scheme is a wise decision as it allows you to accumulate a considerable corpus till retirement. It offers a monthly pension and benefits like the flexibility of allocating the investment, portability, and compounded returns. However, it falls short in terms of ease of investment and liquidity options.
PPF not only allows you to grow your investment steadily but also provides tax benefits as per section 80C of the IT Act. It comes with a tenure of 15 years and the annual investment can range from Rs. 500 to Rs. 1,50,000.
However, a partial withdrawal is permitted only after completing 5 years. The benefits of the PPF scheme apply to both homemakers and working women. The high interest rates associated with this investment scheme let you earn a considerable amount over its long tenure.
Both the above-mentioned instruments are suitable for attaining your long-term investments goals. Also, they come with rigid rules for premature withdrawals. These drawbacks can be covered by investing a part of your income in FDs. Also, the wide tenor options offered by FDs will allow you to execute your short-term investment plans with ease.
Post Office Time Deposits
Post office Time Deposits can prove to be ideal for earning considerable returns over a shorter tenor as they offer tenor options ranging from 1 to 5 years. However, premature withdrawals are approved only if certain conditions are met.
Corporate FDs like Bajaj Finance FD not only offer a high FD interest rate but also come with easy liquidity and a simple online investment process. It also lets you choose the tenor and number of deposits you want to invest in. Therefore, it can prove to be the best fixed deposit for women.
The returns of bank FDs, post office time deposits, and Bajaj Finance FDs are given below if a capital of Rs. 40,00,000 is locked-in for 3 years:
|Fixed Deposit Plan||Invested Amount||Tenor||Rate of Interest||Interest||Maturity Amount|
|Bank FDs||Rs. 40,00,000||3 years||5%||Rs. 6,43,018||Rs. 46,43,018|
|Postal FDs||Rs. 40,00,000||3 years||5.5%||Rs. 7,12,273||Rs. 47,12,273|
|Bajaj Finance FDs||Rs. 40,00,000||3 years||6.75%||Rs. 8,68,905||Rs. 48,68,905|
The difference in returns is huge enough to generate enough interest income. As a mother, you can utilize these higher returns for securing your child’s future. If you are an entrepreneur, the higher returns can be reinvested for executing your business strategies.
Apart from high returns, you also get the flexibility of withdrawing your deposits to manage unexpected circumstances. Your deposits need to complete 3 months from the deposit date to be eligible for premature withdrawal. A loan against deposits is provided if you don’t want to stop your deposits from growing.
Up to 75% of the FD value can be availed as a loan and that too without submitting any collateral. The multi-deposit feature lets you invest varying amounts in several FDs at once. Their tenors may also vary and you are permitted to invest in both FD types simultaneously. The liquidity options can be maximized by investing in multiple FDs.
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If you are older than 60, invest in Bajaj Finance FD and earn a 0.25% higher interest rate. However, non-seniors qualify for a 0.10% extra FD rate on investing in this FD scheme via a seamless and convenient online process. Therefore, it also proves to be an ideal senior citizen fixed deposit scheme. Bajaj Finance FD is a safe investment proposition as it has been recognized as a stable instrument by CRISIL and ICRA.