InvestorQ : Is there any business that can give minimum Rs.1 as an interest?
Riya Dwivedi made post

Is there any business that can give minimum Rs.1 as an interest?

Answer
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2 weeks ago


There are many ways to get more than 1-rupee interest on a daily basis. However, they involve accepting various levels of risk, which may not be palatable for you. However, you can definitely put the money in a fixed deposit and choose periodic disbursement of interest. You can choose a monthly payment of interest. You can receive an interest anywhere between 5%-6.5% depending upon the time period you choose.

Alternatively, you can also choose to invest the money in a liquid fund with the flexibility of encashing the funds anytime without any penalty as is the case with a fixed deposit. You can earn anywhere between 6.5-7.10% in a liquid fund. Do remember though, returns on a liquid fund are not fixed. 

Alternatively, if you are open to making investments periodically, there are various investment products that you can invest in that will give you the dual benefits of insurance and wealth creation. Unit Linked Insurance Plan (ULIP) is one such investment. ULIP is a combination of insurance and investment. Here policyholders can pay a premium monthly or annually.

A small amount of the premium goes to secure life insurance and the rest of the money is invested just like a mutual fund does. The policyholder goes on investing through the term of the policy – 5,10 or 15 years and accumulates the units. There are a lot of life and health insurance products that have similar options.

Furthermore, you can also invest in the National Pension Scheme (NSPS) periodically. This is a long-term investment and it gives the investor an option to choose an investment based on the level of risk they are comfortable with. Depending upon your risk profile, you can adjust your exposure equity, which also determines the potential returns you can earn. Additionally, investing in NPS also gives you certain tax benefits along with compounding advantages.