There are various benefits offered by banks for investment in different banking schemes and policies. Some of the major expert points for banking investment in various schemes and policies are mentioned below:
- Fixed deposit schemes helps us to save tax and ensure great returns with high interest rates and there will be a lock in period of 5 years and you can invest minimum of INR 100 to maximum of INR 100,000. There are two types of deposits offered under this schemes the first one will provide quarterly compounded/reinvestment of interest. The second one will provide quarterly payout of interest to the depositor.
- Recurring deposit help people to deposit fixed amount who have regular income. Depositor can also avail loans against collateral of Recurring amount. The rate of interest will be similar as in Fixed deposit schemes. TDS is not applicable to RDs. However, income tax must be paid on interest earned on Recurring Deposits.
- Saving accounts allows customers to set aside liquid assets while earning a return. Withdrawals from a saving account are costlier and time consuming. It has limited number of free transfers and transactions.
- Current account deposits does not offer interest and mainly used by business people for doing any number of transactions.
- Portfolio investment scheme is offered by all the federal banks throughout India. An NRI Customer can purchase and sell shares through stock exchanges.
- Monthly income scheme account offered by post offices in India. It is well suited for retired employees and senior citizens. Rate of interest will be 8.40% and maturity period will be five years. There will be no bonus on maturity. You can open two types of accounts first one is single and the other one is Joint with a min of RS 1500.
- Public provident fund account ideally suited for both salaried and self employed customers. NRI’s are not eligible for such schemes. Investment of upto RS 1,00,000 per annum qualifies for rebate. There will be yearly rate of interest of 8.7%.