123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Low Risk Investments You Need To Be Aware Of

By Author: Aishwarya Mahurkar
Total Articles: 291

First time investors can tend to be wary of investing in the financial market as most investments do pose a high risk. Opting for such high risk investments may not be beneficial for them. Hence one of the best options available for any new investor is fixed deposits. FD’s are one of the few investments which offer a relatively low risk investment for individuals. The features of this type of an investment are:


This type of an investment enables the investor to get a higher rate of interest on the funds they have invested.


Such an investment allows the investor to only deposit an amount once on which interest is calculated.


If the interest amount each year is higher than ten thousand rupees, TDS is charged on the interest earned.


What makes a fixed deposit an ideal investment option is the guarantee of returns. Being a safe and low risk investment option, one can expect to get interest on the amount they have invested with a financial institution.


Currently most financial institutions offer a variety of fixed deposits to meet the needs to investors. Some of the most popular types of FD’s are:


Standard FD


This is a regular FD which is offered to all investors. Such an investment offers a duration period from ten days to ten years. The interest rate is decided in advance and remains fixed during the entire duration of the investment.


Special FD


This type of an FD was designed to allow investors to invest an amount for special periods. Such an FD allows individuals to deposit amounts for periods such as 190, 290, 390 days, etc. What makes it different from a standard FD is the fact that the interest rate offered is comparatively higher.


Tax Saving FD


Most FDs allow the investor the option to withdraw their deposited amount at any point of time. In the case of the Tax Saving Fixed Deposit, the deposited amount is locked in for a minimum 5 years to 10 years. Since interest incurred which is higher than ten thousand does have TDS deducted from it, the tax saving fixed deposit helps the investor avoid this charge.


Floating Rate FD


In most fixed deposits, even the interest rate charged remains fixed. In the case of floating rate FDs the interest is not fixed and changes according to the changes in the reference rate. This type of FD allows the investor to take advantage of the potential changes in the interest.


As a first time investor, a fixed deposit is an ideal safe investment option which will guarantee you high returns.


Author Bio :

An experienced writer on finance topics, the author articulates of investment choices such as fixed deposit products in India & recurring deposit schemes. She writes about a variety of topics including the benefits of recurring & tax saving fixed deposit and how to make the right investment choice.

Total Views: 84Word Count: 473See All articles From Author

Investing / Finance Articles

1. The Borrower Should Remember The Repayment Sum
Author: Martina Smith

2. Best Way To Fulfill Your Housing Needs: Home Loans
Author: Chandani Jawar

3. How Benchmarking In A Business Helps In Reducing Labour Hire Costs
Author: Dylan Munro

4. India Inc May Need To Change Rating Agencies Every 3 Years
Author: Suraj Pratap Malik

5. Bitcoin Workshop | Bitcoin Seminar | How To Buy Bitcoins
Author: AB Web Technologies

6. Online Financing - The Modern Way Of Investment
Author: wealthcarreindia

7. Selling Assets Versus Sme Loans: Which Is The Better Option?
Author: Manish Damani

8. Equity Research Report
Author: Chetan Rathod

9. Personal Loan Calculators Explained
Author: Arwind Sharma

10. Importance Of Having A Bank Account In The Digital World Today
Author: Sushant Singh

11. Step By Step Guide To Gst Registration Of Your Business
Author: Amol Kale

12. Forex Trading Techniques And Strategies For Beginners In Forex Market
Author: Sophia Mason

13. Are Tax Accountants The Most Important Hires For Your Small Business?
Author: John Panayis

14. Personal Loans - All You Wanted To Know
Author: bookmypersonalloan

15. How To Ensure Your Internet Banking Is As Safe As Traditional Banking?
Author: Neha Sharma

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: