Business
Looking For Tax-Free Guaranteed Returns Better Than An FD? GRP Has You Covered
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Guaranteed return plans offer up to 6.9% tax-free returns from day one, remaining unaffected by future interest rate changes or market fluctuations
FDs, which were considered safe investments, no longer offer the same returns as before. (Representative/Shutterstock)
The financial environment is continually evolving, with interest rates fluctuating and the stock market remaining unpredictable. This uncertainty has prompted many in India to reconsider their financial planning strategies.
Previously, investments were made in fixed deposits (FDs), recurring deposits, or market-based schemes with little consideration. Nowadays, people are seeking options that are stable, low-risk, and capable of securing their financial future for years to come.
In this context, guaranteed return plans (GRP) have emerged as a new source of relief and trust for many investors.
The primary advantage of guaranteed return plans is that they offer up to 6.9 percent tax-free guaranteed returns from the outset. These plans remain unaffected by future interest rates or market downturns, which makes them appealing as safe and stable investment options. These schemes attract a wide range of investors, from daily savers to those contemplating long-term investments.
Pavitt Laul, Head of Investments at Policybazaar.com, highlighted that the assured and stable returns are the main reason for the increasing popularity of GRP.
Previously, FDs, which were considered safe investments, no longer offer the same returns as before. With a guaranteed return plan, returns are locked in from the moment of purchase. For instance, FD interest rates were around 9 percent in 2011 but had dropped to 6.05 percent by 2025. This decline makes it increasingly difficult to outpace inflation with such returns. Conversely, GRP guarantees fixed returns for the entire period, regardless of market fluctuations.
Why Guaranteed Return Plans Are So Popular
- Tax savings on investments under Section 80C.
- Tax-free maturity benefits on annual premiums up to Rs 5 lakh under Section 10(10D).
- Fixed interest rates throughout the policy period.
- Tax-free maturity amount.
- Compound growth at a fixed rate.
The entire maturity amount of a Guaranteed Return Plan (GRP) is tax-free, making it more attractive than fixed deposits, where the interest income is fully taxable. This tax advantage, combined with the ability to plan for long-term goals of 10, 15, 20, or even 47 years, makes GRPs appealing to many investors.
Another advantage is the flexibility in payment options:
- Investors can opt for a lump sum at maturity.
- They can choose monthly or annual payouts for 5 to 30 years.
- Immediate income plans are available for those who want returns right after investing.
- Some plans provide a steady income later in life, functioning like a pension.
This flexibility allows every investor to select an option suited to their life goals and budget.
GRPs are not just investment tools—they also include life insurance cover, providing financial security for the family and ensuring that long-term goals remain achievable even in the absence of the breadwinner. This combination of tax benefits, flexibility, and security is why GRPs are increasingly popular, especially among young parents, middle-class families, and new investors.\
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
November 25, 2025, 19:30 IST
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The government on Thursday kept petrol and high-speed diesel (HSD) prices unchanged at Rs253.17 per litre and Rs257.08 per litre respectively, for the coming fortnight, starting from January 16.
This decision was notified in a press release issued by the Petroleum Division.
Earlier, it was expected that the prices of all petroleum products would go down by up to Rs4.50 per litre (over 1pc each) today in view of variation in the international market.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.
Meanwhile, most of the transport sector runs on HSD. Its price is considered inflationary, as it is mostly used in heavy transport vehicles, trains, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, and particularly adds to the prices of vegetables and other eatables.
The government is currently charging about Rs100 per litre on petrol and about Rs97 per litre on diesel.
One of Britain’s most prolific rail fare dodgers could face jail after admitting dozens of travel offences.
Charles Brohiri, 29, pleaded guilty to travelling without buying a ticket a total of 112 times over a two-year period, Westminster Magistrates’ Court heard.
He could be ordered to pay more than £18,000 in unpaid fares and legal costs, the court was told.
He will be sentenced next month.
District Judge Nina Tempia warned Brohiri “could face a custodial sentence because of the number of offences he has committed”.
He pleaded guilty to 76 offences on Thursday.
It came after he was convicted in his absence of 36 charges at a previous hearing.
During Thursday’s hearing, Judge Tempia dismissed a bid by Brohiri’s lawyers to have the 36 convictions overturned.
They had argued the prosecutions were unlawful because they had not been brought by a qualified legal professional.
But Judge Tempia rejected the argument, saying there had been “no abuse of this court’s process”.
JSW Jetour T2 Launch: JSW Motors Limited, the passenger vehicle arm of the JSW Group, is reportedly preparing to enter the Indian car market this year. It has partnered with Jetour, a China-based automotive brand owned by Chery Automobile, and the Jetour T2 SUV could be the company’s first product, according to the reports.
Media reports suggest that the launch will happen independently and not under the JSW MG Motor India joint venture. The SUV will wear a JSW badge and name, instead of the Jetour branding. The upcoming SUV will be assembled at JSW’s upcoming greenfield manufacturing facility in Chhatrapati Sambhaji Nagar, Maharashtra.
According to the reports, the company plans to have the vehicle on sale by the third quarter of this year. With this move, JSW aims to establish itself as a standalone carmaker in India.
Expected Powertrain
The SUV is likely to arrive with a 1.5-litre plug-in hybrid setup. Internationally, this hybrid powertrain is offered with both front-wheel drive and all-wheel drive options. It is still unclear which version will be introduced in India.
Design
In terms of design, the T2 is a large and rugged-looking SUV. It has a boxy and upright stance, similar to vehicles like the Land Rover Defender. Despite its tough appearance, it uses a monocoque chassis instead of a ladder-frame construction.
Size
The SUV measures around 4.7 metres in length and nearly 2 metres in width. This makes it larger than the Tata Safari, even though it is a five-seater. A longer 7-seat version is also sold in some markets.
Price
Pricing details for India are yet to be announced. For reference, the front-wheel-drive five-seat T2 i-DM is priced at AED 1,44,000 (around Rs 35 lakh) in the UAE.
Jetour
Jetour is a brand owned by Chinese automaker Chery. Launched in 2018, it focuses mainly on SUVs and is present in markets across China, the Middle East, Africa, Southeast Asia and Latin America.
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