We all want to grow the money we have earned to look after our health and the health of our close ones. Today, it is imperative to save funds to be secured in times of emergency and to have enjoy a tension free retirement. A smart way to increase your wealth and efficiently cater to everyday financial needs is to invest right. There are several savings schemes offered by banks, financial companies, and government to encourage investors to invest wisely and look at all the pros and cons of investment options and plan well.
- National Savings Certificate
The National Savings Certificate is a type of fixed income plan for saving that you can choose to open with any post office of your choice in India. NSC is one of the saving schemes which is an initiative by the Government of India that encourages investors, majorly the ones who fall under the mid or small income categories. This helps saving on income tax. Being a fixed return type and low risk investment that it is, NSC is one of the saving schemes, primarily used for small and medium investments and for the purpose of saving tax.
- Senior Citizens Savings Scheme
The senior citizens savings plan is one of the saving schemes that offers investor a high level of safety, regular income and at the same time, save on taxes. At the time of retirement, most individuals are hesitant to invest money in equities, given the risk it can come with. For all the retirees looking for a comparatively less risky product out of all the saving schemes, this scheme is just right for you and is available across all the certified banks in India.
- Recurring Deposits
A recurring deposit, also known as RD, is one of the many saving schemes offered by banks. This type of savings plan is meant for individuals who can deposit money on a regular basis and wish to get higher return at the time of maturity. RD is one of saving schemes wherein, you can decide the term period and the number of deposits per month, as per your convenience.
· KVP (Kisan Vikas Patra)
Kisan Vikas Patra is one of the saving schemes put in place by the Indian Post Office and doubles the money invested in a time span of eight years and four months. The minimum investment amount for this savings plan is INR 1000. Initially, this type of savings plan was only meant for farmers and encouraged long-term savings. It is now available to all the citizens of the country.
· Public Provident Fund (PPF)
ThePPF savings plan is a government-backed savings scheme. It is also the safest and most popular savings option in India. The contribution made towards a PPF account is applicable for tax deduction u/s 80C of Income Tax Act.
· Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is a savings plan introduced by the Indian Ministry of Finance. This savings scheme is specifically designed to secure the financial future of girls.
- Employee Provident Fund
Introduced by the EPFO (Employee Provident Fund Organization), EPF is one of the government-initiated saving schemes, wherein it is compulsory for the salaried individuals to make an equal contribution towards the PF account. This type of fund helps individuals to plan well for retirement in advance so that they can spend their golden days in worry-free way.
- Pradhan Mantri Jan Dhan Yojana
Launched by the Government of India in the year 2014, this savings plan is designed for individuals who do not possess a bank account in India. Pradhan Mantri Jan Dhan Yojana offers a cost-effective solution related to accessing financial services such as insurance, banking, pension, and remittance, etc.
- MIS (Monthly Income Scheme)
MIS is one of the saving schemes, wherein you invest some amount to be paid monthly. It is a low-risk monthly, monthly-income type of scheme and helps generate steady income. The money invested in this type of savings plan is completely safe until it matures, since it is sponsored by the Government. When the maturity period of the plan is reached, you can choose to either withdraw the amount or invest in this scheme again.
On a Parting Note
Savings schemes are launched by the Government of India, banks, or the public sector financial institutes. They differ in terms of the investment horizon, tax treatment and interest rate. These saving schemes help individuals in the accumulation of funds and create a financial cushion that ultimately helps fulfil both short-term and long-term financial objectives. A credit score check is vital because it may not have a direct impact on investment, but it can surely have an impact on your portfolio for investment in the long run.