2. Money market/Liquid funds

Liquid funds are those bonds, which the banks or the insurance companies provide in the form of paper against a deposit of certain amount. They can be redeemed within a short period of time, usually 24 hours.

Liquid funds help a customer to keep the money safe and away from any form of risks. These types of funds also offers higher rate of return to the customers, compared with the Saving Bank Accounts.

3. Fixed deposits (Bank FD)

Fixed Deposits are somewhat like Liquid Funds with a lock period. They can only benefit the investors after a fixed period of time.

However, if the investor wants to make an early withdrawal, they have to undergo a certain amount of loss with the Fixed Deposits.

Investors are hence suggested to plan their Fixed Deposits properly before investing in them. Once planned properly, Fixed Deposits can be a secured way of getting huge returns from the banks.

Also Read:

4 Reasons Why You Need a Financial Planner

10 Budget Terms You Must Know