What are the best risk-free investment options available?
Curious about risk-free investment
In India, some of the best riskfree investment options available are:
1. Public Provident Fund (PPF): It is a longterm investment scheme with a lockin period of 15 years. The current interest rate is 7.1% per annum, and the investment is eligible for tax deductions under section 80C of the Income Tax Act.
2. National Savings Certificate (NSC): NSC is a governmentbacked investment scheme with a lockin period of five years. The current interest rate is 6.8% per annum, and the investment is eligible for tax deductions under section 80C of the Income Tax Act.
3. Fixed Deposits (FDs): FDs are one of the most popular riskfree investment options. Banks and post offices offer fixed deposits with different tenures and interest rates. The interest rates on FDs range from 4% to 7.5% per annum.
4. Government Bonds: Government bonds are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. They are considered a safe investment option as they are backed by the government. The interest rates on government bonds range from 5.85% to 6.8% per annum.
5. Senior Citizen Savings Scheme (SCSS): It is a governmentbacked scheme for senior citizens with a lockin period of five years. The current interest rate is 7.4% per annum, and the investment is eligible for tax deductions under section 80C of the Income Tax Act.
It is important to note that while these investments are considered riskfree, they may not offer high returns compared to investments with higher risk.