Top 5 investment options for everyone

Top 5 investment options for everyone

Perhaps, you are a young, energetic person who is looking to invest money for some return or an elderly person who is looking to have a struggle-free elderly life. Being sound financially is very important in life especially when you get older. As you get older, your income is expected to fall because of retirement and you may not be able to earn money anymore.It is very important to have a backup plan. Below are the 5 investment options with low or moderate risk.

Fixed Deposits

Fixed deposit is a contract between the banks and the investors which promises higher returns. Banks provide a higher rate of interest on a Fixed Deposit than a regular savings account.

But the catch here is that the fixed deposit contains a pre-determined maturity period. Maturity period is a fixed amount of time after which the deposit will be matured and available for withdrawal. The maturity period for a deposit can range from 7 days to 10 years.

Fixed deposit is one of the safest ways of investment. Banks offer an attractive rate of interest of up to 5.25% to 7%. Some banks may offer higher interest rates for senior citizens.In some cases, FDs can be withdrawn before the maturing period but will attract some early-withdrawal charges.It is always wise to go through the rate of interest offered by the banks and select the one which offers the highest rate.

Recurring deposits

Recurring deposit is similar to Fixed deposit but you deposit a small amount of money every month instead of paying a lump sum. It is a special kind of term deposit which offers the same rate of interest as the Fixed Deposit.RD is recommended for young investors or investors who have 5 to 10 years for their retirement.

On maturity, the investors will be paid the total investments along with the interest earned on them.One of the best features of RD is that it can be withdrawn before the maturity period. The interest will be calculated based on the tenure completed. Banks normally charge a fee for the premature withdrawal.It is always advised to select a bank which offers a high-interest rate and low penalty on premature withdrawal.

High-interest savings account

This option is especially useful for senior citizens. Senior citizens, after retirement expected to have a considerable amount of savings. Instead of depositing the money in a regular savings account, it is wise to open a high-interest savings account.Many banks offer high-interest savings account for senior citizens. Banks offer from 6.6% to 7.75% of interest per annum. This is one of the safe and easy ways to invest which has no restrictions like the maturity period or withdrawal charges.

Health Policy

Everyone should have a health insurance policy regardless of you are a young or elderly person. With the days of evolving technology, the cost of medications is going skyrocket. New diseases and health problems appear every day, so as the cure. Getting admitted in hospitals will cost thousands of dollars in a matter of days so it is always the best plan to get a health policy as soon as possible. If you are an elderly person with an amount of money saved, getting admitted in hospital for any reason without a policy can get you in trouble and may create money problem. It is always wise to get a health insurance policy as soon as possible which will cover your medical and surgical expenses. Quotes for 2020 advantage plans can be found here

Pension Plans

If you want to have a happy life after your retirement, pension plan should be included in your investment options. While you are employed, you deposit a pre-determined amount to the bank for a certain amount of time and you can get that money back after your retirement.  There are options to either get the money as a lump sum or a little amount every month exactly like a pension.