Let’s quickly see what makes non-bank deposits useful:
Best options - FDs are one of the best options for investing your surplus money.
No taxation on FD – Tax saving Bank Fixed Deposits are those FD schemes in which the returns are good and they are not taxed. Investments of specific amount of up to Rs. 1,00,000/- needs to be done for availing such benefits for a minimum of 5 years. Such an investment is insured by a coverage of up to Rs. 1 lakh.
Options to choose from - Not only banks but NBFCs and co-operative banks also offer you to invest in FDs. Sometimes NBFCs offer a higher interest rates than banks. But make sure you invest in a reputed NBFC.
Returns on FD maturity - You can get your returns after the maturity of your fixed deposit according to the period structure you have chosen for monthly or quarterly basis and you may reinvest your amount.
If you are looking for higher returns which is more than savings account or PF account or if you don’t want the hassles of investing in equity then tax saving FDs is one of your best option.
Want to know more about it? Read here: http://gettingmoneywise.com/2017/06/what-is-non-bank-fixed-deposits.html
Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms.