What is the Best Investment Option for Retirement?
After retirement, you will lose your regular income and then it may be difficult for you to continue and maintain the same standard of living. So, you need to invest in a proper channel to get higher returns on investment. Some of the best options are:
Fixed Deposit
A fixed deposit acts as the best asset for retirement plan as it provides stable and reliable returns and the rate of interest is also high. The tenor of FD ranges from 3 months to 10 years. Corporate FDs are better than bank fixed deposits, as corporate FDs provide up to 8.40% ROI and 0.35% more to senior citizens FD. Senior citizens can also avail tax benefits under Section 80 C of the IT Act. They can even calculate returns in advance using an FD Calculator and avail a hassle-free process.
Provident Fund
A provident fund is good because you can invest as low as Rs. 500, and the maximum amount is Rs. 1.5 lakh each year and avail tax benefits under Section 80C. You may notice fluctuations in the returns as the rate of return on the public provident fund (PPF) is dependent on the average bond yield in the previous year. You can open an account at a post office, bank, as well as online.
National Pension Scheme
A National Pension Scheme (NPS) is a long-term investment, that allows investing in a mix of stocks, bonds, government securities, etc. The best part is the tax benefit of Rs. 50,000 under Section 80C of the IT Act is possible.
