Saving Avenues: Fixed Income Investment Options

Female hand putting coin into piggy bank closeup
Small modern safe on shelf to indicate how fixed income investment options are safe havens
Fixed income investment options are the safe lockers which keep our earnings secure and help us to earn some returns on them too
Concept of power of compounding where the principal earns interest and gets added back to the principal.
Albert Einstein rightly called the principle of compounding the eighth wonder of the world

The different fixed income investment options available in India

1. Bank fixed deposits

  1. Interest payout: Cumulative (the option which reinvests the interest) or non-cumulative (pays out interest at predefined intervals: monthly, quarterly, annually)
  2. Tax saving or regular: In a tax-saving FD, the amount gets locked-in and we cannot withdraw early
Jar with a label that says 'Fixed Deposit' with a clock to indicate the term. Fixed deposit is one type of fixed income investment option.
Bank fixed deposits are best for people who can put aside a stipulated amount for a fixed period which can be long term or short term

2. Recurring deposits (monthly investment instrument)

3. The Public Provident Fund (PPF)

Public provident fund or PPF, a low risk Indian investment choice, tax exempt concept highlighted through Indian rupees and coins in a steel utensil, a calculator, and pen.

4. The National Savings Certificate (NSC)

5. The Sukanya Samriddhi Yojana (investment instrument for girl children)

A little girl smiles as does her homework in the study room. The image indicate the investment option available for girl children.

6. The Senior Citizen Saving Scheme

7. The Post-Office National Monthly Income Scheme (monthly investment instrument)

Choose the fixed income investment option best suited to your needs

Bag of Indian money with Indian rupee sign in green background. The image indicates investment in fixed income investment options.
It is also always important to pay attention to the taxation benefits, rate of return, and lock-in period while making a choice of fixed deposit options

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