Safest Investments With High Return On Investment

Whenever choosing any investment options, following 3 things are important to be considered in order for your money to provide you highest return on investment:

• Present financial status
• Inflation
• Associated risks
• Rate of Interest

While every investment gives you good ROI, there are some safest investments with highest return and lesser risk which secure your financial future. These are as follows: (Remember, risk free investment options generally yields less returns):

Savings Bank Account:

This is considered to be the safest investment option with best yield and most importantly it is a risk free option.

Where can you open a/c:

Almost every bank offers this viz.

• Public sector
• Private sector
• Co-operative
• Regional
• Rural

Advantages:

• Minimum to zero balance required.
• Balance in your account is directly proportional to the return. So good amount of balance will yield you higher return (For e.g. Rs.10, 000 kept in savings bank a/c with State Bank of India yields Rs.200 with 4% interest. For next half year, it will fetch interest on Rs.10, 200 , and you’ll get Rs.204 as interest and so, on)
• Money can be withdrawn at any given point of time.

Best Recommended For:

• Salaried individuals
• Persons with limited source of income.

Risks:

• No risks. Since your money is safe with bank. 

Certificate of Deposit (CD):

This is also one of the safest investment option with higher return on investment but is best suitable for short to medium term investors. It is different from savings bank a/c, where you have to invest a large amount for specific period, starting from few months to few years and for specific rate of interest.

Where can you get CD?

• Public and Private Banks
• Loan Institutions

Advantages of CD:

• Offers high amount of returns for large sum of money kept.

Best Recommended For:

• Short term investors

Risks of CD:

• In case of premature withdrawals you lose on interest.
• Few service providers may penalize you when money is withdrawn prematurely. (Tip: Always read terms and conditions of your investing company)
• Money is under arrest for certain amount of period.
• Yields poorly when length of period for which money is kept is increased.
• Investments are taxed.