7 Best Saving Schemes Every Investor Should Know About
While an FD investment is most sought after by investors because of its safety and freedom from market fluctuations, it doesn’t hurt to look into additional options of investment along with the best FD option that offers a high rate of interest. Some existing options include mutual funds, Atal Pension plan, Jeevan Jyoti Bima, etc., all of which have their own set of characteristics, with safety at its peak.
Why Is It Important To Take Your Time Before Choosing a Good Savings Scheme?
Since savings can be invested to not only safeguard your money, but also offer you additional income, it is best to know their features, benefits, and negative aspects before investing. Here are a few reasons why you should choose a good savings scheme.
- Investing in a good scheme can put your savings to good use.
- A profitable scheme can provide you a form of income via returns.
- Good saving schemes offer you better growth for your income.
- Certain schemes like fixed deposits are risk-free, so you money is guaranteed to be safe.
- Some saving schemes offer you tax benefits too.
The 7 Best Saving Schemes Ideal For You
Now that you know of the benefits, you can look at some great saving options. Choose one that suits you best in terms of tenor, returns, risk and reliability.
- Mutual Funds: This scheme involves a pool of investments by various investors that is managed by an asset management company. These investments yield returns in the form of dividends over a period of time. Some mutual funds have tax benefits under section 80C of the Income Tax Act, and can help you enjoy tax-free returns. Choose mutual funds carefully as they do bear market risks. Seeing their past performance or investing with a trusted financial company are both good ways to ensure relative safety of your investment.
- Atal pension: This scheme provides pension for the retired with other benefits at the cost of a contribution per month. This scheme is tax-free, and designed for people from lower income groups. Investors aged 60 and above can opt for a fixed pension from Rs.1000 to Rs.5000.
- Pradhan Mantri Jan Dhan scheme: This scheme is ideal for farmers and those in rural areas. It offers financial services of remittance, deposits, credit card and much more. It features an overdraft facility to up to Rs.5000, along with a RuPay debit card and accidental insurance of up to Rs.1 lakh.
- PPF: Self-employed and salaried individuals can invest a sum of up to Rs.1.5 lakh in a PPF account and also gain from tax benefits over the returns. Public provident funds are designed by the government for the working class to invest pools of savings. This option provides steady interest over your savings and ensures that they mature over time.
- Company Fixed Deposits: This safe and reliable investment option involves investing a sum of money in a financial company for a chosen tenor and a fixed rate of interest. Investors get guaranteed returns on maturity of their FDs and can choose between a cumulative interest pay-out or a non-cumulative pay-out that offers interest for their use on chosen intervals.
- Sukanya Samriddhi Account: The government of India designed this scheme for women. The investor that locks money into this scheme is eligible to receive return up to 9.1%. It was designed by the government so that parents could secure the future of their daughters over the long term. You can invest a minimum of Rs.1000 in this scheme over a period of 21 years.
- Jeevan Jyoti Bima: This is a life insurance scheme offered by the government of India. In case of death of the insured, it offers the nominee up to Rs.2 lakh. It features an annual premium of Rs.330.
Invest smartly and wisely by finding out which investment option works for you and gives you returns as well as tax deductions. Bajaj Finance offers safe and reliable company FD investments that offer high returns as well as a flexible tenor.