Introduction
Saving is part of the income that we keep separate from our expenses so we can use it in the future or can use it in our future financial planning. We save some part of our income to secure the future, but we all know this money will not be able to meet our future needs. We need to invest our money somewhere so we can get interested in it and our wealth can grow substantially.
Keeping this in mind, today we will talk about different saving options. You can choose as per your capacity and needs. In today’s time, it has become very important to save and invest it in the right place. There are many savings schemes. Let’s discuss the 7 best plans among them.
List of Saving Options
- Recurring Deposit
- Fixed Deposit
- Public Provident Fund (PPF)
- Post Office Saving Option
- Government Bonds
- Sovereign Gold Bonds (SGB)
- National Pension Scheme (NPS)
Recurring Deposit
Recurring Deposit, also known as RD, is the best and safest savings plan. The best thing about it is you can choose the amount and time as per your requirements. You can do RD in any Bank or Non-Banking Financial Companies that are known by NBFCs. It has the flexibility that you can deposit money every month as per your capacity. You get a fixed interest no matter how the market is performing. Banks and NBFCs give you different offers to choose time and money. It has the option of Short-Term, Medium Term and Long-Term Tenure. RD is one of the best ways to save money and get extra money as an interest.
Fixed Deposit (FD)
If you want the safe option for savings then FD can also be the best option. This is just like RD, the only difference is that you must deposit a fixed amount in this saving option. You can choose the amount and tenure of your choice as well.
You can save it in any bank or non-banking financial company. One of its many benefits is that if you are in need of money, you can take Approx 90% FD Amount as a Loan. Using this option your FD also remains safe and your money requirement is fulfilled as well.
Public Provident Fund (PPF)
PPF returns are assured by the Government which makes it more secure than other options. You can deposit any amount from Rs 500-1,50,000 in a year. Maturity tenure is 15 years but you can do Partial Withdrawal after 7 years. You can extend it as well for the next 5 years. It has the benefit of 80C and there is no income tax on its interest amount.
Post Office Saving Option
This Post Office Scheme is a monthly saving scheme. To avail of this saving option you need to open an account with Post Office. You can open an account with Rs 1000 and start saving from Rs 1000 every month. If you are using a Single Account, You can deposit up to Rs 9 Lakh and Rs 15 lakh in a Joint Account. Currently, this is giving the interest of 7.4% per annum. Remember, this is a taxable scheme.
Its maturity tenure is 5 years. You cannot make Premature closure till 1 year. If you close the account between 1 – 3 years, you will be charged 2% of the principal amount, and between 3 – 5 years, a 1% charge will be levied. This can be a safe and good mid-term saving option.
Government Bonds
Today, among investment or saving options, government bonds are also considered one of the best saving options. These bonds are issued by the government. This has a good Interest rate with high security of your money. Most government bonds have a fixed price which is stated at the time of their issuance, which means their interest rate is fixed till maturity. The maturity tenure depends on the project. All information will be available on the document.
Sovereign Gold Bonds (SGB)
This is also considered one of the best saving options because, under this government scheme, gold can be invested at a low price. This is also a good and safe way to save. If you want to buy gold and want to make savings for it, then it is better that you invest directly in SGB.
You have to invest at least 1 gram. On this, you also get a semi-annual interest of 2.5%. It matures in 8 years and you can do redemption after 5 years. You do not have to pay TDS on this but it will be added to your income and you will have to pay Income Tax if you fall in the Income Tax category.
National Pension Scheme (NPS)
This is a Saving Cum Retirement plan which is regulated by the Pension Fund Regulatory and Development Authority of India (PFRDA). Like EPF, this is also the best saving option because in this a separate Permanent Retirement Account Number (PRAN) is allotted.
This can be started with a minimum of Rs 500 for any person who is aged between 18-65 years. Anybody from this age can open this account. This is one of the Tax-Free Best Saving Options. After the age of 60 years, you can withdraw 60% of the amount. With the rest of the money, You can buy an annuity plan from any insurance company and get a pension every month.
Conclusion
These are some of the best saving options that can help you build your saving habits and achieve your goals. Just before choosing any savings or Investment Plan, know your financial goal, what you want, and how much risk you are able to take, Only then choose any savings or Investment Plan.