How Is Fixed Deposit As Pension Income For Retired
Administrator 01-09-2017 01-12-2017
These are one of the favourite investments of individuals of India. These are considered to be one of the safest investments, although a lot need to be checked before buying this product from institutions other than bank and highly secured institutions. These are considered to be very safe investment instrument in INDIA as it offers the fixed rate of interest. The name fixed deposits itself suggests that everything is fixed into fixed deposits like fixed investment period, fixed returns & fixed amount. These can be taken from:-
FD gives you safer returns if taken from bank or safe institutions. It may give you higher returns if you have taken from risky institution. The major benefits provided by FD are their safe & guaranteed returns. As it gives you the fixed rate of return you can estimate the growth of your investment. Another benefit of FD is their availability. FDs are available at Banks so if you want to park your funds you can easily find the bank nearby your located area .There can be secured bonds known as debentures, these are more secured than bonds. When the financial institution (Govt or non-govt) requires money they make the agreements in terms of bonds & offers fixed interest to the bond holder till he holds the bonds.
There is no tax benefit attached with this product. Only Tax saving fixed deposit is there to give you tax benefit of 1.5 lac with lock in period of 5 years. The returns from the scheme are taxable in the hands of individuals.
There are some Tax free bonds in the market which help you in maintaining your purchasing power. These bonds give you Tax free returns. Most of the times Government introduces some tax free bonds like bonds of REC, NHPC, NHAI, NTPC, and HUDCO. These tax free bonds offered by Govt. Not gives you any taxation benefits just the interest earn on the investment will be tax free.
No plan is good or bad, only the situation of individual decides whether he or she should buy the product or not.
You should not buy any plan without planning your need at retirement. This product gives you money for expenses and hardly adds any value to your purchasing power. In general the real return after Tax and inflation is negative for individuals. If you need to invest for a very short period, these can give you good results.
The answer is comprehensive customized life planning, this makes you plan your life with approximately all the domains of life with long horizon.
To carry out all your responsibilities you need to plan your life.
Before doing any investment into any product first of all you must know the Pros & cons of that product.