These 5 Medium-Term Investment Options Have A Return Of 6-7%

Post Office Monthly Income Scheme

It is a great medium-term investment option for an investor who is looking for monthly income. As the name says, it offers a monthly income that is interest earned on your investment. It is a type of investment that guarantees the investor returns at a rate of 6.60 percent per annum, and these profits can be taken as a regular monthly income. This scheme is backed by the India Post, a government undertaking. It guarantees the investor 6.60 percent annual returns in the form of a set monthly dividend. It protects your wealth, generates higher returns than debt instruments, and provides a predictable monthly income.

 

National Saving Certificate

The NSC scheme is available at all post offices, and it is promoted by the Indian government. It is yet another saving scheme offered by the India Post, it is a post office saving scheme. The scheme has been quite popular in India due to a large number of post offices. The reason is it offers simple access to these post offices spread across India. The scheme is preferred secured as the investment in the scheme is backed by the government of India. Because the plan was designed primarily for people, NRIs and HUFs are not eligible to invest in this scheme. Individuals of any age can obtain a certificate because there is no age restriction. Investments can be made with the help of a second adult. 

Kisan Vikas Patra

Kisan Vikas Patra is yet another saving scheme offered by the India Post and backed by the government of India. According to the most recent update, the scheme's tenure is now 124 months (10 years and 4 months). The scheme offers a high return i.e, 6.9% on the investment. An investor can start investing in the scheme with Rs. 1000, and there is no limit to how much you may invest. The name comes from the fact that it was created for farmers to help them save for the future. It is now open to everyone. You must show income documents for deposits of Rs. 10 lakhs and higher. It's a low-risk savings platform where you can put your money to work for you for a certain length of time.

Corporate Fixed Deposit

Many corporates and non-financial banking firms, like banks, allow for the collection of fixed deposits for a specified period of time at a pre-determined rate of interest. Corporate fixed deposits are the name for these types of accounts. Corporate fixed deposits, like bank fixed deposits, offer flexibility in terms of duration and assured returns. Furthermore, these FDs pay a greater rate of interest than traditional bank FDs. However, as compared to bank FDs, the risk is larger. Corporate fixed deposits have a term range of one to five years, and as an investor, you have the option of choosing any length within this range. The interest offered by the Corporate FDs is between 5-6%, depending on the Corporate house.

Senior Citizens Saving Scheme

It is another scheme that offers a great return on investment, but as the name says, it is designed for senior citizens only aged 60 and over. It is a government-sponsored savings program for senior citizens of India. Investors of this scheme will be eligible for guaranteed interest payments on a quarterly basis. As mentioned above the investor of this scheme must be an Indian citizen. NRIs, PIOs cardholders, and HUFs are not included in this scheme. If you area retirees, aged between 55-60 years, and have chosen VRS also eligible to invest in this scheme, however, there is a catch, you have to apply within one month of receiving retirement benefits. This scheme gives investors a good return on their investment. Talking about tax, Under section 80C, investments under this scheme are eligible for a tax deduction of up to Rs 1.5 lakh. The interest earned, however, is not tax-deductible. It gives you the option of extending the tenor. You can start with a 5-year tenor and extend it up to 3 years at maturity.