It always been said that plan your today well and don’t think about tomorrow because of its uncertainty. And the current situation of the pandemic in the world was even impossible to anticipate. No one had ever visualized the current situation which the masses are going through. The adversity which everyone is experiencing was never been in anyone’s wish list. This is the time where economies in the world are facing a crisis, business growth is slow down, people are losing jobs, social environment is disturbed, educational institutions are closed, families are relocated and people are deprived of basic amenities.
This pandemic has created various difficulties in the life of many people. A liquidity crisis is one of them. The emergence of a liquidity crisis was natural because of job loss and salary cuts. Now the people are going after their savings and pulling out money from their investments which they have made in the past. But the problem arises for people who did not have the nature of saving money and never invested money to secure their future. But as and when the situation resumes to normal, everyone should cultivate the habit of saving money. It is always good to save some portion of your income for future purposes. Some people invest their money in different forms to earn some additional income rather than keeping in a it safe at home. Because “Saving funds is a best practice but investing funds is a clever choice”
Here I will explain to you some of the investment avenues where you can invest money and earn some passive income.
| Investment Title | Minimum period of holding | Interest Rate
& Period of interest payment |
Taxability of Interest | Characteristics |
| i) Saving Account | No Holding Period | Between 2.75% to 4% credited in account quarterly, half-yearly, or annually depending upon bank policy. | Interest received up to Rs. 10,000 is not taxable. |
|
| ii) Fixed Deposit
|
7 days to 10 years | Between 2.5% to 5% credited in account quarterly, half-yearly, annually or on maturity depending upon bank policy. |
|
|
| iii) Public Provident Fund | 15 years | Interest rates range between 7% to 8.75% and interest will be credited annually in the account. |
|
|
| iv) Sukanya Samriddhi Yojana | 21 years (but investment has to be for 15 years only) | Latest Interest rate Is 8.4% |
|
|
| v) Sovereign Gold Bonds
|
8 years | 2.5 % Annually.
Interest shall be paid half-yearly |
|
|
| vi) Direct Equity Investment | No holding period | The dividend is paid annually, depending upon the company’s financial performance |
|
|
Conclusion: There are many more investment schemes available like equity mutual fund, debt mutual fund, National Pension System, real estate investment, Senior Citizen’s Saving Scheme. But one cannot invest blindly his hard-earned money in every scheme due to the pros and cons of each scheme. So, it is advisable to choose investment wisely in consultation with a professional advisor. So that money and future both shall remain secured.
****
Disclaimer: The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
Author Bio
