Every common man must worry that where to keep your money that the funds should be safe and also grow. When it comes to reliable and safe investment, three names come to mind first, including banks, post offices and LIC. But the question arises that which of these options will give you the most profit? Let’s understand…
Investment in bank: how much returns, how much security?
The most common method of investing in bank is Fixed Deposit (FD) and Savings Account. Nowadays most banks are giving returns ranging from 7% to 8% in bank FDs. That too when you FD for a period of more than 3 years. If the FD period is short, the interest rate can be even lower. At the same time, ordinary savings account gets interest ranging from 2.5% to 4.5% and some private banks can pay a little more interest on high balance, but that too is not too much.
Post Office Schemes: Low Risk, Fixed Return
Post office plans are good for those who want their money to be safe with government guarantee and got fixed returns. Post office plans are fully supported by the government, so there is no danger of drowning in them. There are many schemes of the post office in which excellent interest is received.
7.7% interest (for 5 years) is available in the National Saving Certificate (NSC). Talking about the Kisan Vikas Patra (KVP), the money doubles in about 115 months i.e. about 7.5% annual interest is available. Apart from these, 7.1% interest and tax free returns are available in Public Provident Fund (PPF). At the same time, the senior citizen saving scheme gets interest up to 8.2%, but this scheme is for those above 60 years of age. Sukanya Samriddhi Yojana gets more than 8% interest on investment in the name of daughters and it is also tax free.
Benefits of investment with LIC insurance
LIC i.e. Life Insurance Corporation of India does not only give insurance, but also gives you returns on investment. Especially for those people who want their money to be used in their life insurance as well as future planning. LIC’s Jeevan Anand Policy gives the benefit of returning money on maturity with insurance plus bonus. At the same time, moneyback policy gets money every few years and in the end a large amount is also available.
The return of LIC is not completely decided because it also has a roll of bonus. Usually an estimated return of 5% to 6.5% per annum, which changes according to the scheme and time. LIC is a government insurance company and your policy is considered completely safe in it.
Where is the return at a glance?
Who should choose LIC, bank or post office?
What will be better for you in LIC, bank or post office depends on your purpose, age and ability to take risk. If you just want safe and fixed returns, then post office plans (NSC, KVP, PPF) are suitable for you. On the other hand, if you want some investment along with insurance, then LIC’s plans will be correct. Apart from this, if you want to withdraw money quickly, or you need liquid funds, then the bank FD and savings account will be better.