It's that time of year when your savings accounts a healthy balance, with Diwali bonus. Do you just blow money on clothes and biscuits or make it last longer? Here are some investment opportunities to collect more money.

Deal first with the short-term loans such as personal loans or credit card bills with the bonus money. Given the high interest rate you pay now will be on these loans, investments, before you settle the loan can be a drain on your savings.

SAFE TAX HAVENS"
You may know that his cousin, as his salary is taxed. So, what do you get the tax paid by the security investment tax saving options? Take a look at the option of traditional national savings certificate. Although this would result in blocking six years, is one of the most tax efficient and secure with maximum performance. After allowing for tax savings, the interest rate of 8 % compounded annually, resulting in effective yields to 14.3 % for those in the tax of 30 %. Even in the court of the 10 % tax will earn a reasonable return of 9.9 % after the tax benefits and deductions.

The interest component by way of being automatically reinvested (as interest is accrued), gets deduction under Section 80C every year. Hence, only the interest earned in the final year is taxed. If you can lock in your savings for a longer period, then the humble Public Provident Fund (PPF) account can be a silent wealth builder. Consider this: If you invest Rs 50,000 now, the amount would more than treble to Rs 1.6 lakh in 15 years.

You will, however, have to keep this account alive with an investment of at least Rs 500 every year. You can invest up to Rs 70,000 a year. Regular investment in this account can work wonders, given the dual benefit of tax deduction under Section 80C if you invest every year and tax-free interest income. Added to this, you can apply for a loan against your PPF account after the end of the third financial year and can withdraw sums from the seventh financial year.

If you invest Rs 50 000 FPPs for each year, you end RS 14.7 lakh after 15 years if the current rate, there is 8 %. Consider at least a portion of the bonus each year in this low-profile performer.

The five years of tax savings offered by commercial banks also give the deduction Section 80 C. But the tax on interest makes this. A less profitable compared to the previous two, however, the low blocking period and security (deposit account and savings balances up to RS 1 lakh are insured) make it a good opportunity to invest your bonus.

If you do not care to save taxes, or have already gone through a tax efficient investment frontier RS ​​1 lakh, then the normal long-term bank deposits are good reasons for parking. Balances with banks currently offer interest rates between 9.75 % and 10.25 % of deposits in 1-3 years. Remember, however, that the post-tax interest of investors 30 % tax bracket, the range of 6.8 to 7.1 %. This opportunity may not last very long the deposit interest rates have already risen a little 'to their minimum.

Medium risk Options:
If you are game for a slightly higher risk, therefore the company fixed deposits and non-convertible bonds of companies with credit ratings are good ways to get higher returns. The interest rate is said to be near its maximum, it can be a good time to lock in 1-3-year deposits by companies such as HDFC and Sundaram Finance. Always insist on knowing the credit received by the company for its debt issue. While the convertible bonds and fixed deposits of non-banking financial companies they rate explicitly that many other companies, deposits increased not publish it with your application.

Do not invest in corporate deposits, if you do not have such information, or do not know the company's financial position. What rating, instrument in three dimensions is considered safe enough for small investors. Double AA rated issue, though a notch below, is also acceptable.

Another option in the medium risk category are bonds issued by companies in infrastructure financing infrastructure. Investing in these bonds receive a tax deduction under section 80CCF income tax up to 20,000 rupees. They may be called medium-risk option, as there is no guarantee for the interest or principal.

They have a lock-in of five years and a much longer period.

Although rates vary among issuers offer a coupon of 8.5 % that is currently available, the return of after-tax return of 14 %. Again, go to Triple A-rated issues.

LIQUIDITY:

If you are not ready to block your money and can take more risks, there are many investment opportunities. Monthly income plans and other debt-oriented funds with equity exposure wee-bit may provide that extra bit of performance, the traditional instruments of pure debt may not be able to offer.

Proceeds from the show that 12 to 15 % compounded annually for a period of three years, these funds can be redeemed at any time.

They are also tax-efficient compared to the accumulated deposits. Dividends are tax exempt in the hands of investors.

Although capital gains in the short term if sold within one year, subject to your regular tax slab, are the most-term capital gains taxed at 10 % without indexation.

We will, however, the rate they are a bit risky choice for two reasons: first, exposure to loads of them with equity risk generally asset class actions. Two, unlike deposits, there is no guarantee for the payment of dividends or capital gains.

Source: Business Line