| BANK DEPOSITS |
OTHER INVESTMENTS |
- Bank deposits are one of the safest
investments and risk of default is minimal
|
- Investments in equities, company deposits,
debentures, mutual funds etc. is more risky. However,
investments in RBI Bonds, Government Securities are even more safe.
|
- Banks deposits give an almost assured,
fixed and uninterrupted returns
|
- The returns from equities, mutual funds is
not assured. The company deposits and debentures may stop
servicing of interest any time due to losses. However,
investments in RBI bonds, PPF, Government securities give assured returns.
|
- It is easy to choose a deposit scheme at a
Bank as they are simple and can be understood by a layman
|
- The investments in equities and mutual
funds is much more complicated and complex for a layman.
|
- There are no rebates available under Income
Tax for deposits in Banks, except under special schemes now floated by
Banks for availing the income tax rebates.
|
- Deposits in schemes like NSC, PPF,
Infrastructure allows rebates in Income Tax.
|
- Bank deposits give lower rate of returns
|
- Company Deposits, debentures, equities can
give higher returns, but have higher degree of risk.
|