Traditionally people in India have been investing in FDs for a long time for the future of their children and to meet their financial goals. Investment in FD is absolutely safe and there is no risk of drowning. Earlier, people used to get 8 to 9 percent interest in FD, but in the last few years this interest rate has come down to 5 percent, which is also 1 to 2 percent less than the current inflation rate.
On the other hand, if seen on the other hand, there are many more options available in the market as safe as FD. One of these is the Guaranteed Return Plan, it gives you the option of a safe investment without any risk and also provides you with insurance. The biggest feature of this plan is that like FD, a fixed amount is available after the completion of the plan’s term.
Anyone in the age group of 18 to 60 years can take the Guaranteed Return Plan. However, the premium amount varies according to age. It helps in fulfilling your financial goal like FD. This plan is offered by many private insurance companies.
This plan has the same flexibility as FD, you can decide the amount and tenure of investment according to you. In this, you can deposit a minimum of Rs 2,500 to Rs 2 lakh every month. At the same time, its duration can be up to 5, 7 and 10 years. There is also an option to invest large sums of money in it. Along with this, it also offers an insurance cover equal to 10 times your annual premium.
On investing in this plan, you also get an exemption of up to Rs 1.5 lakh under Section 80C of Income Tax. Along with this, you also get exemption under section 10 (10D) on maturity, which makes it a much better option than FD.