You had investible money, deposited it in a fixed deposit scheme, and have the lump sum maturity proceeds, now what? A lot of people in their early twenties or thirties plan on getting in on a fixed deposit scheme for a good return after a couple of years.
Once you have the maturity proceeds with you, is it best to simply add it to your savings, go on an expensive vacation or put the money forward in another scheme? Let’s find out more.
Getting Another FD Scheme?
It is likely that the FD schemes which you invested in and got your proceeds from, now offer a higher return scheme from other financial institutions, after a period of 10 or 20 years. The simplest way to get the highest return on FD possible is to look for a short-term plan now.
For example, if you have a maturity proceed of up to Rs 30 lakh, try to invest in two different schemes for the next five years. Look for the highest safety assurance, premature withdrawal of after three months of deposit made, and you are good to go.
A Post-Office Scheme
A post office scheme can get you an excellent deal. A post office monthly income scheme gets you around 7.7% of interest annually. If you qualify for the Senior Citizens Scheme, you can make use of the quarterly annual interest payouts, as well. This scheme can get you around 8.7% of interest annually, which is at par with the highest returns on FD you can get your hands on.
Income Schemes In Mutual Funds
If you are more on the conservative side of things and still hoping for a monthly income from your investment, a low-risk profile, stable returns scheme would be the way to go. Many financial institutions offer professionally managed funds.
Accrual funds with a short-term scheme are the best place to start with when investing money for the first time in a mutual fund. With such funds, you can get around 7% returns annually.
Systematic Investment Plans are also a great way to boost your FD maturity proceeds. These are very popular Indian mutual fund schemes. With this, you can keep a low-risk profile, as such schemes allow you to invest in a small amount multiple time periodically.
The investment procedure can be carried out weekly, monthly, or quarterly. When you go for a SIP, you can start with a quarterly or monthly to see how it goes, and then you can go ahead and start investing lump-sum amounts.
Risk takers can go for schemes that have higher capital appreciation with high-risk profile schemes and higher interest rates. It is better to play safe with low investment schemes when you have your FD maturity proceeds. But, if monthly income is a priority instead of long-term returns, its best to go with financial institutions that have lakhs of SIP accounts and are doing well.