How can you Invest your Savings for a Better Future

Savings for a Better FutureWorking in a nine to five job, often there are times when we think of the ways that can get us multiplied income. The fact that our salary doesn’t last more than a month bothers us so much that we look for jobs with a better salary. We all expect leisure in life but pull our hands back as our salary doesn’t satisfy our needs. These are the problems faced by each and every individual who belongs to a middle-class family.

To make things better and purchase basic luxuries in life such as buying a motorcycle or a TV, we start saving, but as we all know very few people actually end up buying them. The accumulation of funds through savings can take a really long time, on the other hand, if you consider investing your money, you would be able to multiply your income and at the same time get the purchasing power to be able to buy whatever you want.

There are sources that can give you faster returns, and at the same time, there are sources that can make you a millionaire overnight. The dream of becoming a millionaire overnight seems good, and this dream can be achieved, but for that, you might have to take big risks. A risk where you might gain a little first, but also you might end up losing your entire capital. This risky investment is called as mutual funds. To invest in mutual funds, you need to have extensive knowledge about the market and its ups and downs; it is recommended that you look for other safer and better options.

Fixed Deposits are one of the best investment options that you would find in the Indian market. They offer benefits like a guaranteed income, invested capital safety and most of all high returns. Before investing in Fixed Deposits, you need to know that there are service providers in the market other than the banks. There are organisations which are called as Non-Banking Financial Companies (NBFCs) that also offer Fixed Deposit Schemes with perks that are much better than the banks. They are also called as Company FDs.

How are Company FDs better?

The returns that you gain from Fixed Deposit are calculated on the basis of the interest rate offered by the service provider. The banks give you the entire capital with the gained profit at the time of maturity; such is not the case with Company FDs. NBFCs offer flexible compound period on the amount invested which means you can choose the duration when the interest rate will be compounded and added to your savings account. Here is where you play smart and do the math. You can add the monthly compounded interest amount in your FD account. Doing this will increase your invested capital amount which will increase the amount that you will gain on the next compounded interest. For, eg. If you invest INR 50,000 in Company FDs, with a compounding period of 1 month at 8 percent interest rate. Your yearly income will be INR 4000, but at the same time your monthly income will be INR 333, if you reinvest this amount every month for 12 months then at the end of the year your returns will be INR 4633.

The Company Fixed Deposits can increase your income monthly, quarterly, half yearly or annually depending on the compounding duration of the Fixed Deposit interest rates you choose. It can also help you save on taxes.

Summary: The Indian market is a playground for investments, as there are various sources that you can invest in. If you are looking for investment sources that can give you better returns without hurting your invested capital, then you must invest in fixed deposits.

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