Best places to invest ₹50,000 to ₹1 lakh | Fusion - WeRIndia

Sometimes, when people find that they have a surplus from about ₹ 50,000 to ₹1 lakh, they prefer to invest it instead of spending it.

This is a relatively small amount of money that would not raise too many taxation concerns in investment.

However, some people do not know the best places to invest this surplus money.

These are some of the best ideas for investing this amount of money in the short term.

One place to invest ₹50,000 to ₹1 lakh is in Ujjivan Financial FDs, which allows people to get an interest rate of 8% on a 1-year deposit.

Ujjivan Financial FDs is a small finance bank that is regulated by the Reserve Bank of India (RBI). The interest rate would still be at 8% for a 2-year deposit as well.

However, the interest that is earned on these deposits is fully taxable.

The IDFC Bank (Infrastructure Development Finance Company Bank) is one of the few banks that has been granted a commercial bank license.

For a 366-day deposit, the IDFC Bank offers an interest rate of 7.5%, which is a far better rate than most Indian commercial banks.

The bank compounds interest every quarter, and the interest that is earned is fully taxable.

The Suryoday Small Finance Bank is another small finance bank that was granted license by the RBI.

For deposits between 24 months and 36 months, the bank offers an interest rate of 8.75% on any amount less than ₹1 crore.

The Suryoday Small Finance Bank also offers a savings bank interest rate of 7.25%.

Another good place to invest ₹50,000 to ₹1 lakh is the Kerala Transport Development Finance Corporation (KTDFC).

The KTDFC offers an 8.25% interest rate on a 1-year deposit. The interest rate also stays at 8.25% for a 2-year deposit.

Since the government of Kerala guarantees up to ₹ 2,000 crores of deposits, there is very little risk to investments in the KTDFC.

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