FD vs Gold vs SGB vs Mutual Funds-Where should you invest your Diwali bonus this year?
- It is advisable to keep your temptation aside and consider investing your Diwali bonus in wealth-generating assets.
- If you are a risk averse investor, term deposits are one of the best options for you.
- This holiday season is considered the best time to buy physical gold in India, especially during Dhanteras and Diwali.
New Delhi: This is the time of year when most employees receive Diwali bonuses from their employers. While most employees use this amount for party shopping, if this amount is invested every year, it can grow into a big longer-term body of work and help you achieve long-term goals like retirement, retirement, retirement. child rearing and marriage. It is therefore advisable to put aside your temptation and consider investing your bonus in wealth-generating assets. Here are some options for investing your Diwali bonus.
If you are a risk averse investor, term deposits are one of the best options for you. Currently, banks are offering between 5% and 6.5% on longer-term fixed deposits. However, before you decide to put your bonus in an FD, it is always best to compare the interest rates offered by banks and post offices.
SBI latest FD rates
SBI FDs with a maturity of between 7 days and 10 years now give from 2.9% to 5.4% to general clients. Seniors will get an additional 50 basis points (bps) on these deposits. These rates are applicable from January 8, 2021.
Latest FD rates from HDFC Bank
HDFC Bank offers interest ranging from 2.50% to 5.50% on deposits with a maturity of between 7 days and 10 years. For seniors, it offers interest rates of 3% to 6.25% on FDs of 7 days to 10 years.
Latest FD rates from ICICI Bank
ICICI Bank gives interest rates ranging from 2.5% to 5.50% on deposits with a maturity of 7 days to 10 years.
Latest interest rates on Swiss Post term deposits
Post office term deposit systems are currently the most attractive, offering higher interest rates and a sovereign guarantee. Post offices offer term deposits ranging from one to five years. For a period of one to three years, postal deposits offer an interest rate of 5.5%. For a five-year post office term account, investors can get an interest rate of 6.7%.
Gold and SGB
This holiday season is considered the best time to buy physical gold in India, especially during Dhanteras and Diwali. People prefer to buy gold coins on these occasions. However, experts say that if you are buying gold for investing, it is better to invest in gold sovereign bonds (SGBs) rather than buying physical gold. There are many advantages to buying SGB as the transaction cost is zero and you get 2.5% interest on the investment amount. In addition, if you hold SGB to maturity, no capital gain is imposed.
The minimum authorized investment in SGB is 1 gram of gold. The subscription ceiling will be 4 kg for individuals, 4 kg for HUFs and 20 kg for trusts and similar per financial year.
Experts say this is the best asset class to invest for the long term if you have the courage to put up with market volatility. Equity mutual funds are more volatile in nature than debt mutual funds. But equity MF systems have the potential to generate returns above inflation over the longer term. So if you are saving for a longer term goal, you can invest your Diwali bonus in equity MF programs. For starters, you can choose index funds, which are less volatile.