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How to get 8% interest rates on your investment post demonetization?


Demonetization brought forth a challenge for all the investors. The share market went down drastically and the interest rates of banks are expected to go down due to the huge inflow of money into the banks. Is there any investment in the near by future where the interest rates are not volatile to the changing economy?

The investment plans like FD and RD gives us the opportunity for getting returns at the interest rates during the time of our deposit. Let’s look into the interest rates provided by the SBI on Term deposits.

In the year 2012 we can see the interest rates provided by SBI in the below table.

 Likewise we can see the rates for the year 2015. From these tables we can say that the interest rates are not constant and are liable to change at any period of a month.



Currently the interest rates provided by SBI are given in the above table. This was updated in November 2016. From these tables we can say that the rates are decreasing year by year. Is there a way to get interest rates above 8% by investing now? Yes.

LIC provides an investment plan where you can get higher returns. Hurry! Now is the time to apply or enquire about the NEW ENDOWMENT POLICY. Let’s see what is this Endowment policy? What are the benefits of the policy?

NEW ENDOWMENT PLAN is a pure investment plan with high bonus and liquidity facility incorporated. The Sum Assured along with accrued Bonus and Final Additional bonus (if any) will be paid at the end of the policy term. The policy term is from 12 years to 35 years. You can choose term for investment say 16 years or 20 years. The policy term depends on the age of the person taking the policy.

Let’s say you are planning an investment of Rs. 10,00,000 over a span of 16 years. For this plan, you will be required to pay a premium of approximately 65,000 (inclusive of tax) per year or a half yearly premium of Rs. 33,000 or you can pay quarterly or monthly payment also. Now at the end of 16 years you will be paid a lump sum of around 17,32,000 to 20,04,000.

The perks of this policy apart from yielding high interest are

1.     Tax exemption for the premium paid.

2.     Tax free Maturity benefit: Basic sum with bonus + Final addition bonus (for policies with term above 15)

3.     Loan facility

4.     Accidental death and disability benefit rider available.



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