Higher Return Investments On Small Savings For Women


Usually it is seen that women tend to save more in their bank accounts but are not good investors. They feel that being financial wizard is a man’s forte, so it is their spouse who will handle the investment part. But now it’s time to change let us check out some tips and easy ways of investments which will give you higher returns on small savings.Higher Return Investments On Small Savings For Women

With some relaxation in the rules of investments and savings by the government we can expect good results from our meagre savings. Let us check out what all these options can be and especially for women. The reason being if you will leave them in your bank account, you will tend to spend it. So why not invest these small savings and get higher returns on them.

Good Returns On Public Provident Funds

According to the latest investment schemes announced by the central government , they are going to raise the returns on the small savings like provident funds .if we calculate the return the PPF will give 20 basis points more return on the small savings( 100 basis points = one percentage points).

Thus the PPF, which is the most famous investment scheme in India, will see a rise interest rate from 8 % to 8.2%. On the other hand the senior citizens will see a rise up to 8.95% annually. But a decline is expected in the five year senior citizen’s scheme which will be hit by 30 basis points this year.

Variations In The Interest Rates For PPF’s And NSC’s

Monthly Income Scheme  (MIS) and the National Savings Certificate(NSC) the rate of interest will remain the same , but their tenure of term of deposition will decrease from six to just three years. The rates might get affected if the new formula, which is based on three year average rate on comparable government bond, is applied to these financial instruments. These schemes like NSC and MIS will carry the rate of interest according to the year of purchase.

So if the rate of interest this year is 8% and you purchase NSC this year you will get this rate of interest only , however if you purchase the NSC next financial  year and the rate is 8.5% you will get 8.5% interest. But in case of Public Provident Fund the interest rate payable will remain the same which has been fixed at the start of the financial year just like Employee Provident Fund.

This way these rates of interest will ensure greater returns on the small savings which you will invest in these instruments. Except for these here are few short term and long term investment options available in the financial market which will help you in getting good returns over a short or long period of time .These are real good investment options especially for women.

Top Most Short Term Investments

Invest In Buying Shares

Shares are official form of your investment in any company. Here the amount of shares you buy, that amount of capital is invested in the company and depending upon the profits the company earns you will get your share in the profit too in the form of dividends.

Higher Return Investments On Small Savings For Women

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If you want to purchase the shares at the lowest price, then you should buy them when the company is in its formative stage or when the stock market is down. It takes time for the share prices to rise and after few months you will start getting good returns from the shares you have purchased.

Deposit In Fixed Or Recurring Deposits

If you want your money to be in the safe hands and get good returns too, then a bank is the right place to invest your money. Banks are reliable and easily accessible financial service. Here the growth might not be the same rather a bit slower but it will be steady. If you are planning to invest small amount of money in the bank then better go for recurring deposits. But if you are planning to invest large sum of money then Fixed Deposit is a good option. In case of these deposits you will get a minimal rate of interest of 6% but you know that the money will be in safe hands.

Invest In Mutual Funds

In order to invest in a mutual fund you need a smart Fund Manager who will design a nice profitable portfolio for your saving by combining stocks, bonds and securities etc. This professionally managed portfolio will give you better returns and cover all the short term as well as long term investments in a balanced form. The main job of fund manager is to maintain a right balance between the equity and the bonds. Usually they invest 65% in equity like stocks and 35% in government bonds.

Top Most long Term Investments

Insure Yourself With Life Insurance Policy

They give you the dual benefit of not only securing your money with better returns for a long period, but they provide a financial security to your family too. There are many more benefits attached to Life insurance policies, like you just have to pay small amount every month or every year and you get a life time bonuses and get tax benefits too. With these policies not only you but your family gets a financial protection and you can avail loan benefits too against these policies.

Buy Government Bonds

Since they are being issued by government, so they are risk free investment options. Government are the most secure instrument to invest money as the government will always return your money from the taxes it earns and secondly the rate of interest on government bonds is very high which is guaranteed over the time. Thus this is the best and most secure option for women to invest.

Invest In Real Estate

Investment in real estate is a good option as they give you very high returns and the best part is that you can pay money in instalments. But the only risk here is that real estate is market driven, so you have to be aware of the upswings in the market and sell your property when it appreciates.

Thus by knowing all the options available in the market women can choose and combine bets short term and long term options and get the best returns on their investments.

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