Every common man is worried about where to keep his money so that the fund remains safe and grows. When it comes to reliable and safe investments, three names come to mind first, which include banks, post offices, and LIC. But the question arises, which of these options will give you the most profit? Let's understand…

Investment in a bank: how much return, how much security?

The most common ways to invest in a bank are a Fixed Deposit (FD) and a savings account. Nowadays, most banks are giving a return of 7% to 8% on bank FD. That too, when you do FD for a period of more than 3 years. If the period of the FD is shorter, then the interest rate can be even less. On the other hand, in a simple savings account, interest of 2.5% to 4.5% is available, and some private banks can give a little more interest on a high balance, but that too is not very high.

Post Office Schemes: Low risk, fixed returns
Post office schemes are good for those who want their money to be safe with a government guarantee and also get fixed returns. Post office schemes are fully backed by the government, so there is no risk of losing money in them. There are many schemes of post offices in which great interest is available.

National Saving Certificate (NSC) gives 7.7% interest (for 5 years). Talking about Kisan Vikas Patra (KVP), the money doubles in about 115 months, i.e., about 7.5% annual interest is available. Apart from these, the Public Provident Fund (PPF) gives 7.1% interest and a free return. On the other hand, the Senior Citizen Saving Scheme gives up to 8.2% interest, but this scheme is for those above 60 years of age. In the Sukanya Samriddhi Yojana, investment in the name of daughters gives more than 8% interest, and it is also tax-free.

Benefits of investing with LIC insurance
LIC, i.e., Life Insurance Corporation of India, does not just give insurance, but also gives you returns on investment. It is especially good for those people who want their money to be used for their life insurance as well as future planning. LIC's Jeevan Anand policy gives the benefit of money back on maturity, along with insurance plus bonus. On the other hand, the back policy gives money every few years, and in the end, a big amount is also received.

LIC's return is not completely fixed because the bonus also plays a role in it. Usually, an estimated return of 5% to 6.5% per annum is available, which changes according to the scheme and time. LIC is a government insurance company, and your policy is considered completely safe with it.

Comparison at a glance: How much return where?

Investment option Scheme name Estimated return Special benefits
Bank Fixed Deposit (5 years) 7.0% 7.5% Liquidity, safe
Bank Savings Account 2.5% 4.5% Facility to withdraw money quickly
Post Office NSC 7.7% Tax exemption, fixed return
Post Office KVP 7.5% Money doubles in a fixed time
LIC Jeevan Anand 5% 6.5% Insurance cover, bonus benefits
LIC Endowment Plans 5.5% 6.5% Insurance + Return Plan

Which to choose, LIC, Bank, or Post Office?

Which will be better for you in LIC, bank, or post office depends on your objective, age, and risk taking capacity. If you only want safe and fixed returns, then Post Office schemes (NSC, KVP, PPF) are suitable for you. On the other hand, if you want some investment along with insurance, then LIC schemes will be right. Apart from this, if you want the facility of quick withdrawal of money, or you need liquid funds, then bank FD and savings account will be better.

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