Investing in Bank FDs Results in Lesser ROI

Banks Fixed Deposits have always been considered safe as banks cannot ran away and you are likely get your money back one day or the other. But, the most ironical fact here is that Bank FDs can negatively affect your savings over a certain period of time.

Fixed Deposit Interest Rates:

Fixed deposit interest rates offered by banks is very low as compared to Non-Banking Financial organizations or other financial institutions. After investing in a fixed deposit plan in bank you can get about 8.5% before tax and around 7% after tax. Although subjected to market risk, the return on investment from equities and mutual funds is tax free. Whereas ROI obtained from bank Fixed Deposits are taxable. The higher your income, the lower your FD return will be. 

That leaves an important question unanswered. "If bank fixed deposit plan is not a good way of investing all your money, where else should you invest your money?"

Non-Banking Financial Companies:

Although bank fixed deposits offers you lesser ROI, fixed deposit rates extended by Non-Banking Financial Companies are really lucrative and free of any tax. Money invested in a Non-Banking Financial Company’s fixed deposit plan not only provides the security, but also professional management of money along with good performance over time. This type of plan is also very tax efficient and is highly recommended if you want to create a financial back up or grow your money at a faster pace over a stipulated period of time.

Thus, if you want your investment to bless you with regular monthly income of interest, Non-banking Financial Fixed Deposit plans are better than bank fixed deposit plans due to tax efficiency and 100% assured return at the highest rate possible.

A Non-Banking Financial Company fixed deposit plan serves as an innovative and reliable platform for smart investing!