Invest your savings in such areas from where you can earn the highest return to allow your money to grow fast. And this will help you reach your goal quickly. So, the highest return on investments is one benefit.

And the tax benefit on your return is the second benefit of investments. You can avail the tax benefit by paying lower taxes or no taxes on your return, or avail the tax rebate on investments.

You have only three months to go this income year to avail the tax rebate on investments. Make sure your investments meet the conditions of the rebate as per tax laws. Otherwise, you will lose the tax credit facility.

Let's discuss the five investment areas according to the tax law as well as how you will get the highest return from it.

Savings Certificates

It is secured as a government-issued savings certificate. You will also get the highest interest compared to other available investment areas in Bangladesh.

Taxpayers will get a tax rebate on the full investment amount made during the income year. But remember that you have to hold the investment till the maturity date. Otherwise, you will lose your credit facility.

Treasury bond

Treasury bond is also issued by the government. So, it is secured and the interest rate is also high. You can buy treasury bonds from selected banks or from the share market as they are also traded like stocks in the bourses.

The tax rate is 5 per cent on interest and you will also enjoy a tax rebate on your investments.

Life insurance

Life insurance gives financial protection to policyholders and their family members. At maturity, the return is also good and you can enjoy the tax rebate on the premium paid during the year not exceeding 10 per cent of the policy value.

You can take policy for yourself, your spouse and your children.

Deposit Pension Scheme (DPS)

DPS is popular in our country. By saving a small amount every month, a person can receive a good amount after a period of time.

Monthly Tk 5,000 or yearly Tk 60,000 is allowable to get the tax credit from your DPS savings amount. So, it will be a good decision to fix your savings up to this ceiling and the rest of the investment amount could be directed to other investment areas.

Share Market

This is the risk place for investments and the recent behaviour of the market is not well. If you are interested in investing here, then think about a long-term investment.

Dividends up to Tk 50,000 and the capital gain on the sales of shares are tax-free for individual investors. And you will also get a tax credit facility on your investments.

Now take your decision. It is wise to maintain a portfolio for your investments.

The writer is the author of Smart Money Hacks