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Post Office, LIC or Bank, where do you get more benefit by depositing money, how much return do you get
While investing, it is important to keep in mind not just the interest rate but also the safety, duration, tax exemption and financial goals. LIC, post office and banks all have investment options that can meet your different needs. Let us know which of these can be better for you.
Every common man is worried about where to keep his money so that the funds remain safe and also grow. When it comes to reliable and safe investment, three names come to mind first, which include banks, post office and LIC. But the question arises that which of these options will give you the most profit? Let's understand…
Investing in a bank: How much return, how much security?
The most common way of investing in a bank is through Fixed Deposit (FD) and Savings Account. Nowadays, most banks are giving a return of 7% to 8% in bank FDs. That too, when you make an FD for a period of more than 3 years. If the period of FD is less, then the interest rate can be even lower. On the other hand, in a normal savings account, interest of 2.5% to 4.5% is available and some private banks can give a little more interest on high balances, but that too is not very high.
Post Office Schemes: Low risk, fixed returns
Post office schemes are good for those who want their money to be safe with government guarantee and also get fixed returns. Post office schemes are fully backed by the government, so there is no risk of sinking in them. There are many schemes of post office which give excellent interest.
National Saving Certificate (NSC) gives 7.7% interest (for 5 years). Talking about Kisan Vikas Patra (KVP), the money doubles in about 115 months, i.e. about 7.5% annual interest is received. Apart from these, Public Provident Fund (PPF) gives 7.1% interest and tax free return. Senior Citizen Saving Scheme gives up to 8.2% interest but this scheme is for those above 60 years of age. Sukanya Samriddhi Yojana gives more than 8% interest on investment in the name of daughters and it is also tax free.
Benefits of investing with LIC insurance
LIC i.e. Life Insurance Corporation of India not only provides insurance but also gives you returns on investment. It is especially good for those people who want their money to be used for their life insurance as well as future planning. LIC's Jeevan Anand policy gives the benefit of money back on maturity along with insurance plus bonus. Money back policy gives money every few years and in the end a big amount is also received.
The return of LIC is not completely fixed because bonus also plays a role in it. Usually, the estimated return is 5% to 6.5% per annum, which varies according to the scheme and time. LIC is a government insurance company and your policy is considered completely safe in it.
Comparison at a glance: Where and how much return?
|
Investment Options |
Name of the scheme |
Estimated Returns |
Special Benefits |
|
Bank |
Fixed Deposit (5 years) |
7.0% 7.5% |
Liquidity, Safe |
|
Bank |
Savings Account |
2.5% 4.5% |
Instant cash withdrawal facility |
|
Post Office |
National Security Advisory Board |
7.7% |
Tax exemption, assured returns |
|
Post Office |
K.V.P. |
7.5% |
double the money in given time |
|
LIC |
Life Enjoyment |
5% 6.5% |
Insurance cover, bonus benefits |
|
LIC |
Endowment Plans |
5.5% 6.5% |
Insurance + Return Plan |
Whom to choose LIC, Bank or Post Office?
What will be better for you, LIC, bank or post office, depends on your objective, age and risk taking capacity. If you only want safe and fixed returns, then post office schemes (NSC, KVP, PPF) are suitable for you. On the other hand, if you want some investment along with insurance, then LIC schemes will be right. Apart from this, if you want the facility of withdrawing money quickly, or you need liquid funds, then bank FD and savings account will be better.
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