Choose your investment plan wisely to get the highest interest rate

Shopping for an option to have the best returns? We advice you look for ones that offer high interest rate. If you have been visiting banks and surfing the internet then you would probably have realised that there are banks that claim to offer ‘highest interest rate’. They are not wrong in their claims, but banks offer different interest rates on varied investment programmes. And secondly, no bank can help if you are not a good saver yourself. 

Every investor wants to make investments that fetch them high returns as fast as possible. No wonder, why investors are always on the lookout for top investment plans where they can double their money in little time and with little or no risk.

1. Direct equity: This is a high-risk asset as it guarantees no returns. However, the investors stand a bright chance of getting higher than inflation-adjusted returns compared to all other asset classes. There are a lot of investors who invest in it and often bag the highest interest rate.
2. Debt funds: These are best suited for investors who look for steady returns. These are less volatile but invest in fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial paper and other money market instruments and the market return is indeed good.
3. National Pension System: It is a long term retirement-focused investment product and the highest interest rate for 1, 3, 5, years can be said to be around 9.5%, 8.5% and 11% respectively.
4. Check out online-only banks: These are definitely better than the traditional banks. This is because while traditional banks have too many overhead expenses like paying for utility like (electricity and water charges) salaries of bank personnel and other staff, rent/ purchase of building, infrastructure, maintenance and much more, online-only banks save on all these and channelize the amount to their customers in the form of interest.
5. Build a Certificate of Deposits (CD) ladder: CD ladders are a smart way of investing your money. It requires the candidate to split their money and invest them in different CDs for varying term lengths. This investment programme offers higher rate of liquidity than a single CD and allows you to earn a higher return rate than you would get with a regular savings account.  
6. Senior Citizens’ Saving Scheme (SCSS): This is a must-have choice for the elderly citizens. It can be availed from a post office or a bank by anyone who is above 60-years-of age. Though it has a fixed tenure, it can be extended by years once the scheme reaches maturity. So, you see even if they may not be the ones offering ‘highest interest rate’ they are definitely having the best bargain.