Whether it is bank deposit, or National Savings Certificate, it is very important for you to put your down payment money in a safe financial environment.
When you have money to invest, there are many avenues where you can put in your money, but it is always advisable to invest in a safe manner, where your money grows and at the same time provides growth for your portfolio. We are compiling a few of the best down payment options available in India.
Bank Fixed Deposits :
This is one of the safest methods to invest and usually provides over 8% rate of interest which is taxable at the investor’s slab. As experts believe, there is transparency in this method as an individual can know the rates up front.
However, on the other hand, this option is taxable so taxes can harm your returns though, especially if your portfolio comes in the high tax bracket range. But even then a FD that compounds quarterly and done for a long maturity will yield good benefits to an individual.
Public Provident Fund :
This is usually done for 15 years time period and delivers 8.8% rate of interest. The best part with Provident fund is that the amount you invest here is eligible for 80C deductions and the returns are tax free as well. and yes, this is again a very save investment option, specially for individuals in the 30% tax bracket.
NSC IX Issue :
National savings certificate or more popularly known as NSC is another very meaningful and one of the safest investment options where your investment is done for 10 years at 8.9% Interest, the income is taxable, though. This option is available with all the post offices in India.
Senior Citizens Savings Scheme :
Here the investment is done for 5 years where an individual can get 9.3% interest which is taxable. The investment amount is eligible for 80C deduction. This is specially designed for senior citizens and hence can be a great option to park your investment in that age.