When it comes to investing, many people seek options that offer both safety and a guaranteed return. Below are three such investment ideas that provide risk-free and assured returns, making them attractive for conservative investors.
| Investment Name | Interest Rate (Income on Rs 10L) | Taxation | Lock-In Period | Maximum Investment |
|---|---|---|---|---|
| RBI Floating Rate Bond | 7.70% + 0.35% (Rs 80,500/Yr) | As per income tax slab | 7 Years | No Limit |
| Monthly Income Scheme from the Post Office | 7.4% (Rs 74,000/Yr) | As per income tax slab | 5 Years | Rs 15 Lakhs |
| Senior Citizen Savings Scheme | 8.2% (Rs 82,000/Yr) | As per income tax slab | 5 Years + 3 Years | Rs 30 Lakhs |
As of July 2024
The RBI Floating Rate Bond is a government-backed investment that offers an interest rate of 7.70% plus an additional 0.35%, resulting in an annual income of Rs 80,500 on an investment of Rs 10 lakh. The interest rate is subject to changes, as it is linked to the prevailing interest rates. The bond has a lock-in period of 7 years, making it a long-term investment option. There is no upper limit on the amount you can invest in these bonds. The income earned from this investment is taxable as per your income tax slab.
The Monthly Income Scheme (MIS) from the Post Office provides a fixed interest rate of 7.4%, yielding an annual income of Rs 74,000 on an investment of Rs 10 lakh. This scheme is designed to provide a steady monthly income to the investor. It comes with a lock-in period of 5 years. The maximum amount that can be invested in this scheme is Rs 15 lakh. Like the RBI Floating Rate Bond, the income from this scheme is taxable as per the investor’s income tax slab.
The Senior Citizen Savings Scheme (SCSS) is tailored for senior citizens, offering an attractive interest rate of 8.2%, resulting in an annual income of Rs 82,000 on an investment of Rs 10 lakh. The scheme has an initial lock-in period of 5 years, which can be extended by an additional 3 years. The maximum investment limit for SCSS is Rs 30 lakh. The income earned from this scheme is also subject to taxation according to the income tax slab of the investor.
These investment options provide a safe and guaranteed way to earn a steady income, making them suitable for those looking for low-risk investments.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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