Saving money can be tricky especially when you are in a dilemma – to save or to spend? How much should you spend? How much should you save? Saving money, indeed, is an important part of life so that you can invest it and earn better returns to tick-off all the wishes you have planned for yourself, when you retire. As you start saving, planning about investing it in different investment options is equally vital.

Money must be invested sensibly so that it can earn you higher returns, gather cash for emergency purposes, and to keep your hard earned safe from any market fluctuations or inflation. The sole aim behind investing is dependent on setting a definite goal for which you want to save and earn higher returns. These could be plans for your retirement, travel plans etc.

Here are some of the ways in which you can invest your money sensibly:

Investing for Higher Returns

Investing in Fixed Deposits earns you higher returns as compared to any other investment instruments like mutual funds, stocks or bonds. The interest rate on Fixed Deposits is usually between 7% to 7.75% and is offered by many banks and NBFCs. FD offered by companies gives you a higher interest rate of 7.40% per year on a minimum amount of Rs. 25000. The rates vary according to your chosen tenor which can be anywhere between 12 months to 60 months. The interest pay-outs can be paid in monthly, quarterly, half-yearly or yearly basis.

Investing for Flexibility of Paying

It can become difficult for choosing between which time period or duration you must select. You might not be able to decide how many Fixed Deposits you should open, or should there be only one account for investing all your money? Fixed Deposits have the flexibility to provide a tenure which is based on your preference and the amount of liquid cash flow you need for your daily and monthly requirements. In NBFCs you can choose your tenure and get that cumulative or non-cumulative interest on income earned. You can also divide your all your money among different and small duration FDs. You can invest in them again, as they start getting closer to their maturity. This leaves you with many options from which you can withdraw cash whenever you need.

Safety and Security of Funds

Investing sensibly also includes making sure that your invested funds are secured and even provide you tax benefits. NBFCs offers a great tool to compute your FD interest rates depending upon the duration, the amount and the type of FD you want to open. The FD calculator helps you calculate the interest you would be getting by just filling out some minor details. The principal amount, the amount at the end of maturity and the interest earned on your income – everything would be right in front of your eyes. This would help you in getting an idea about how much amount you are ready to invest, the number of FDs you want to keep, depending upon your savings and budget, and how much amount you would want to invest in future.

Company also offers a special tenor scheme of FD for 15 months on a minimum amount of Rs. 1 Lakh which can be earned cumulatively at the rate of interest of 7.85% and is also available in non-cumulative periods divided from monthly to yearly pay-outs.