Almost everyone wants to retire young and rich. That’s why most people want to start investing so that they get a high return on the money that they have. This lets the money to continue to flow in. You can choose banks or financial institutions for this purpose. Here are some of the pros and cons of investing in conventional methods like Bank fixed deposits, versus financial institute mutual funds.
Fixed Deposits
Fixed deposit is an investment plan where you invest a sum of money in a bank for a set period (tenure) with a specific rate of interest. This is one of the most common investment approaches with banks.
Pros:
Low risk
The safest investment with a bank is a fixed deposit. It gives steady growth and provides maximum security to your principal amount.
Assurance
When you open a fixed deposit, the interest rate is predetermined and remains the same throughout the term. This means that the growth of your principal isn’t subject to any other influencing factors.
Tax benefits
You can get tax benefits when you start a fixed deposit. Your taxable amount will be deducted according to the deposit you’ve made.
Cons:
Lower earnings
When compared to other investment plans, these have a very low rate of return. Although it’s risk-free, the earnings are mediocre at best.
The effect of inflation
When compared to inflation, FDs don’t offer returns good enough to beat the inflation. They’re just a decent investment that offers security at most.
Taxable
In spite of having tax benefits, FDs don’t entirely save tax. The returns you get after maturity are taxable. This means you won’t get the full benefit of your investment. That’s a major drawback.
Low liquidity
FDs come with a lock-in period. This takes away flexibility in your investments.
A premature withdrawal has two side effects. First, you’ll be charged a fee for pre-closure. Second, the interest rate reduces. Both are losses that should be avoided.
Mutual Funds
Stock or equity is the ownership of shares in a company or business.
Pros :
Highest returns
From all investments option, equity/stocks are the best when it comes to returns. If invested properly, the average returns ranges from 12-15%. Some good investors can even reach numbers of up to 20%.
Liquidity
Another advantage with stock investment is that you can withdraw your money anytime you want.
This flexibility works better in the long run since it lets you keep control of your money.
Tax-free Dividend
Many companies give regular dividends on stocks. That’s a great way to generate an alternate income. The best part is that is that it’s not taxable.
Defeat Inflation
With returns being high, stocks are a great option to beat inflation significantly.
Cons:
Highest Risk
Equity is the least secure investment you can make. With some strategic planning and proper management, this can be avoided to an extent.
Reallocation
Equity funds don’t perform all that well when you leave them to mature like FDs and PFs. They need to be monitored regularly.
According to market fluctuation, certain funds might not perform well. In those times, you should reallocate these funds to a more profitable organisation. This isn’t easy and needs you to monitor the market regularly.
Whether you’re investing with banks or financial institution, both have their own merits and demerits. You should take a call based on your current status and financial goals that you’ve set.
-
10 anticipated Cyber Monday 2022 deals on internet services
Read moreReliable and fast internet is one of the basic requirements for every household. People of all ages rely on the internet for their daily personal and professional requirements. Cyber Monday sales are ideal for getting 5G internet services or a new home WiFi connection at a discounted price. Good data plans offer crucial perks, such as unlimited internet and high-speed connection. Based on past years’ sales, here are some noteworthy Cyber Monday internet services deals.
- Frontier
This company has something for everyone. Some of the features offered in its Fiber plans are symmetrical downloads along with an upload speed of approximately 500 Mbps. The installation price is $45, along with perks like an AutoPay discount. For the upcoming sale season, Frontier is offering a $100 gift card to sweeten the deal. - Google Fiber
With a starting installation price of $100, this provider’s 2 Gig plan promises unlimited internet and other features like a download speed of around 2000 Mbps. For Cyber Monday, the provider could include equipment in the installation cost for new users. - Verizon
Verizon is could offer several deals on its Fios plans during the upcoming sale season, such as a gift card worth $200 and a $50 e-gift card for Xbox. You should check out their home WiFi plans, as Verizon Fios could waive the $90 installation fee this holiday season. You can also opt for Verizon 5G home internet as 5G internet is becoming extremely popular. Verizon could offer good deals on 5G services that include unlimited data and a free modem along with an additional 50% off for qualifying Verizon mobile users. - Quantum Fiber
This internet provider could waive the fee for the equipment during the sale season. Besides unlimited internet, Quantum Fiber offers a speed of approximately 940mbps for its plans. - RCN
This company is a leading internet service provider. During previous holiday season sales, RCN offered $100 Visa gift cards for new customers and free installation when customers enrolled for RCN plans. Looking at last year’s deals, RCN’s Internet Gig plans could have a Cyber Monday coupon code you can use during checkout. - Cox
This provider’s StraightUp prepaid internet plan comes at a starting price of $50 and promises a download speed of 100 Mbps. Prospective customers could get a three-year guarantee on price as part of a special offer. - AT&T
Those who sign up online for At&T’s home Wi-Fi service could get gift cards of up to $200. Some of the features of the plans offered by this internet provider are an upload limit of 5000 Mbps and unlimited internet. - Optimum
You can find several deals on Cyber Monday intended for new customers of Optimum. Some of them could include free installation, a free one-year subscription to HBO Max, and a Wi-Fi extender. These deals could vary depending on the plan you choose. - Xfinity
Xfinity offers high-speed internet services, and for this upcoming sale season, users could get 6x faster internet at the same price they are now paying. If you choose to get a new mobile line with your plan, you might be eligible for additional discounts. For new users, the internet provider could also offer a Visa gift card worth $300. - Hughesnet
This internet provider is available on virtual platforms all across the country. During the 2022 sale season, this internet provider could offer a discount of $99 on installation along with a $5 discount on equipment.
WiFi and mobile internet are vital services today, and with such great shopping season deals anticipated this year, you can get unlimited internet at affordable prices. The above-mentioned deals should be able to help you plan and shortlist plans before the sale day.
- Frontier
-
4 effective tips to find relevant coupon codes
Read moreEvery shopper’s dream is to shop a lot and save money while they are at it. Though sales are an incredible way of saving money, it is obvious that you cannot always wait for a Black Friday sale or a Cyber Monday sale to buy a laptop or some other household appliance. This is where coupon codes come in handy. You don’t have to wait for a particular time of the year to save money on the things you buy. Almost every popular shopping sites, irrespective of what they sell, offer coupon codes to its valued customers in a bid to maintain customer loyalty or to attract new customers.
The serial shopper knows the value of coupon codes, but if you are a novice to using coupon codes, you will definitely need help in finding relevant coupon codes online. Here’s how you go about the process.
- Though retailers do offer coupon codes on their websites like free shipping or discount codes, which are useful in saving money, these aren’t the best deals for you. The coupon codes on the retailer’s website aren’t the only place where you’ll find discount codes. You can opt for the traditional way of finding the right coupon codes. This method involves going through magazines and newspapers and cutting out the coupon codes for using them at a particular store.
- You can find coupon codes in three ways: through search engines, by using automated shopping tools, or by directly visiting coupon code sites. If you wish to find several coupon codes, then the search engine is the right place for you to begin with. All you have to do is type “coupon codes” or “promo codes” in the search bar and hit enter. You will have a wide variety of coupon codes at your disposal.
- You can even use automated shopping tools like aggregate coupon tools or price comparison tools to look for relevant coupon codes. As these tools are automated browser add-ons, they display coupon codes automatically when you visit the retailer website or go through an online checkout. In fact, these automated shopping tools are one of the easiest ways of finding relevant coupon codes spread across the web and save your time and money.
- If you wish to cut the chase and find coupon codes without putting in a lot of effort, you can visit coupon code sites where there are a plethora of coupons to choose from. This method works the best if you wish to find a specific coupon code.