It is a sad commentary on the financial knowledge of the educated people in India that many of them are still not aware of the many advantages that the finance world has to offer. An individual must make smart investment moves to secure one’s future and have a strong financial backup.

Here are some of the smart investment moves that one must make.

1. Shifting The Loan rate From Basic To MCLR

Due to lack of knowledge, a lot of home loan customers are paying a higher interest as their loans are either linked to the base rate or the benchmark/retail prime lending rate.

They can decrease their EMI by switching to the Marginal Cost of Lending Rate (MCLR). Switching to MCLR is recommended if the difference between your existing rate and the new rate is at least more than 50-60 basis points. As the banks have been filled with demonetised deposits, MCLR has fallen further.

At the moment,  home loan rates have been cut but a customer should always be aware of the different interest rates being provided.

2. Investing in Public Provident Fund

It’s common knowledge that investing in PPF is the safest investment option that one can procure. Why many people don’t apply for it is still unfathomable. It’s, in fact, more beneficial for those who fall in the higher tax bracket.

Minimum investment of Rs.500 and a maximum investment of Rs.1,00,000 (if you’re considering tax deduction under 80C), tax-free interest and maturity amount, the high-interest rate among fixed income entities and also free from creditors, loan sharks, and court attachments.

3. Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is something every middle class or of a lower category in terms of finance should invest.

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The scheme has started with the aim of saving for one’s  daughter’s long-term future whether it is for marriage or education purpose or anything.It provides a high-interest rate @ 9.2 % usually. It shows how important is the scheme in the government’s plans. One can open maximum 2 accounts one for each daughter.

4. Yes Bank Savings Account

The Yes Bank Savings Account is something every youngster should look out for.  Bank deposits usually fetch an interest rate of 6 percent, whereas the savings account of Yes Bank provides an interest rate of 6 percent, which is the same as the SBI deposits.  Ere

Here comes where Yes Bank Savings Account is superior over the SBI ones. The fixed deposits are liable to tax, while savings bank interest is tax-free up to a sum of Rs 10,000. So, while the interest is the same, the service and other aspects make Yes Bank savings account an ideal safe long-term investment. The fundamentals of the bank are quite strong and hence it is one of the best long-term investments.

Image Credits: Google Images

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