Top Fixed Return Investment Options in India: Compare & Choose Which Suits Your Best

There is no denying that every one of us wants to earn high returns in a short period of time. This is the reason why we are on the lookout for investment options that can give us optimum returns. But the fluctuating markets today have made it extremely difficult to find an investment plan that offers minimal risk along with essential financial security.

If you are someone who is not willing to take risks and prefers fixed returns, then going for a guaranteed return financial instrument can be the best choice. Fixed deposit is one of the most sought-after schemes when it comes to secure investments. FDs are quite popular, and probably need no elaboratintroduction, but there is smarter version of know as—Max Life Smart FD or Max Life Smart Fixed-return Digital Plan.

What is Fixed deposit?

In the case of fixed deposits, one needs to open an account with a bank where a fixed rate of interest is paid for keeping money in the scheme for a specific period. Investing in this scheme is one of the easiest ways to earn returns from your funds lying idle in your savings account.

Most banks offer this scheme with certain withdrawal restrictions. The interest offered depends on the bank and the period of deposit. Once the fixed deposit reaches maturity, the principal amount along with the interest earned is transferred to the investor's account. One can also choose to opt for the autorenewal feature, where the bank will renew your FD at the then prevailing interest rates for the same tenure.

Benefits of FD

A fixed deposit scheme comes with many benefits that can help achieve the financial goals of the masses. Here are some of the key advantages of investing in FD:

• Fixed Returns

By putting your funds in an FD, you can receive guaranteed returns. The rate of return offered remains constant throughout the investment tenure

• Power of Compounding

If you choose to renew your FD or opt for reinvestment option, you can benefit from the compound interest, which means that you will earn interest not only on the principal amount but also on the interest earned.

• Hassle-Free

An FD account can be opened in a matter of clicks if you already have a saving account. Once opened, you need not worry about it till the completion of tenure.

• Tax Benefits

In certain types of FD (tax-saver FD with 5 year lock-in), you can benefit from tax exemptions offered only under section 80C of the Income Tax Act of India.However the interest earned is taxable for an investor as per your income tax slab.

Now that we have enlightened you about fixed deposits, let's understand Smart FD/Smart Fixed-Return Digital Plan in depth – a smarter and more competitive version of FD.

What is Max Life Smart Fixed-return Digital Plan?

Smart FD/Smart Fixed-return Digital Plan offered by Max Life is a simple saving plan that can help you prepare for your future financial goals. The reason why this plan stands out is that it offers the benefit of attractive guaranteed returns in a shorter span of time along with the protection of life cover. By investing in this plan, you will be able to build a large corpus. All you are required to do is pay the premium regularly or as lumpsum as per the plan and get the returns that can help meet your financial objectives.

Benefits of Max Life Smart Fixed-return Digital Plan

Here's why Smart FD/Smart Fixed-Return Digital Plan stands out as a new age guaranteed tax free return financial intrument:

• Guaranteed Tax-free returns

With Max Life Smart Fixed-return Digital Plan on your side, you will not have to worry about how the market is operating as this plan provides guaranteed returns at the time of maturity. The returns are also tax-free. The tax benefits offered under this plan are applicableto premium payments as well as the maturity benefits. Investors are eligible for tax deductions of up to Rs. 1,50,000 under section 80C of the Income Tax Act. Moreover, the maturity benefit is also free of tax as per the provisions under section 10(10D).

• Returns in Just 5 years

Max Life Smart Fixed-return Digital Plan requires policyholders to pay the premium for only 5 years. The maturity can happen at the end of 5 years or 10 years as chosen by you.At the time of maturity, a lumpsum amount is paid.

• Life cover

If you are the sole breadwinner of your family, you must be worried about your family's financial future in case you are not around. Having a life cover would mean that your family stays secure. This plan is similar to a life insurance product where you can also choose suitable riders to enhance the benefits.

• Guaranteed interest rate of ~7%*

For instance Max Life Smart FD will generate guaranteed returns (IRR) of 7.21% for a 30 year old male paying Rs. 20,000 per month for 5 years with a policy term of 10 years.

In case of a female with the age, premium amount, payment and policy term remaining same as above, Max Life Smart FD will generate guaranteed returns (IRR) of 7.28%.

Best FD rates in India 2022 vs. Smart FD/Smart Fixed-return Digital Plan

Which is the Right option for you?

Choosing the right investment that best suits your requirements is not an easy task. There can be a lot of confusion, but it's not something that cannot be sorted out. All you need to do is compare the benefits offered under the plans to see which benefits can help you gain more returns in the long term. In the case of Fixed Deposits vs Max Life Smart Fixed-return Digital Plan, the latter seems to weigh more in terms of features and benefits offered.

Looking at the above table must have made clear that the plan offered by Max life offers a significantly higher rate of interest than fixed deposits. Not only that, but you also get a life cover along with guaranteed tax-free returns that standard fixed deposits do not offer. We do have a clear winner here – Max Life Insurance's Smart Fixed-Return Digital Plan.