Fixed or Term Deposit
Although fixed deposit is not for high income households but still we have mentioned it here. Term Deposit or fixed deposit is the safest way to invest your money. The interest rate that you earn on your investment is much higher than a saving account. Countries like United States, Japan, Germany gives very low interest rates for saving bank account and fixed deposits. If we talk of India then the investment period can start from 7 days (15 days, 45 days) and go up to 10 years. The return on investment can be around 4% to 7.50% depending upon your investment time period. However the returns on fixed deposits are taxable. Banks deduct the TDS on interest if the interest amount for a Fixed Deposit is greater than Rs 10,000. The tax rate is 10% if you have a Pan Card and without Pan Card they deduct 20%. So if you are looking for long term safe investment for 10 years with 7% to 8% return then Fixed Deposits are the best.