These are recession times and the investments instead of multiplying are getting reduced as the interest rates offered by the banks are very low compared to the inflation rate that is prevailing today. Overall the investment scenario is dull with under performing stock markets and mutual funds. The Annual Compound Interest is considered vital criteria in measuring the return on investment and investors often prefer the destination where the Annual Compound Interest is higher. Considering the rate of return of the banks, the Annual Compound Interest is very lower than the post offices rate of return which is a bit higher than that of the bank's fixed deposit. The post office deposits and the bank deposits are preferred by senior citizens as they offer assured returns at a low level of risk. The banks have various products catering to the needs of the customers and the recurring deposit and the fixed deposit are the less risky investments and banks also offer investments in the form of gold. The banks also have mutual fund schemes which enable the investor to invest in the share market and the portfolio will be maintained by the experienced portfolio managers of the bank and this is an attractive investment option for many investors as the Annual Compound Interest and the yield are considered to be higher than that of post offices and banks and is also considered less risky with the back ground of the bank's strength but there is a level of risk involved with the mutual fund investments as the money is getting invested in the stock markets.

Experts always say that when the risk aspect is higher, the return aspect is also higher. The Annual Compound Interest will be the highest for investors in the stock market dealing directly with an investor attitude and not speculator thinking. Commodity market is another attractive and high yield producing investor arena for the investors with more Annual Compound Interest. Foreign exchange market is another high risk area and these areas can double the amount and as well as erode the entire savings to zero or even negative in some cases. Hence there must be a balanced investment in all the areas that if an investor experiences a loss in one area, he can be safe with the other area maintaining the Annual Compound Interest at a steady rate. Investors must take risks in investing to get a higher Annual Compound Interest but in the existing recession with the closure of banks world wide, it is safe to keep the money without spending unnecessarily and reduce the credit spending to a large extent.