When we think about investing our hard-earned money, our first concern is to find a safe bet that not only offers good returns but also relief from truck-worth of taxes. The effort that goes into finding something suitable often discourages people from making lucrative investments. As a result, money stays stowed away in cupboards and low-return savings accounts – from where it can be readily accessed and quickly dispensed. Let us help you NOT make the same mistake.
This article will introduce you to various Saving Schemes available and the advantages of investing in one. So, put on those reading glasses and let us help you become a smart investor.
Additional reading: Prime Minister’s Saving Schemes
How to apply for a Saving Scheme?
- Saving Schemes are available at Post Offices and at certain Banks countrywide. Applicants can choose to visit the institution or apply online.
- The Reserve Bank of India website also offers detailed information on Saving Schemes.
- You can also visit a website like BankBazaar.com or any other third- party website for information on different Saving Schemes.
Benefits of investing in Saving Schemes
- Saving Schemes are a good option for those who are looking to make small monthly investments rather than one lump sum transaction.
- Saving Schemes are introduced by the government – which means your money and the interest you earn are relatively safe.
- Some Saving Schemes offer tax benefits. This means you don’t have to pay tax on the money invested and usually, the interest earned as well.
- A lot of Saving Schemes have a lock-in period which will prevent you from making those impulsive withdrawals. This will ensure that you reap maximum benefit from your investments.
- Upon maturity, the principal amount along with interest is credited to the bank account of the Saving Scheme holder.
- Saving Schemes can also be opened in the name of a child and can act as a means to help you secure the future of your family.
- The minimum investment amount for some Saving Schemes is as little as Rs. 100. No more excuses to delay that investment!
Types of Saving Schemes:
|National Saving Certificate (NSC)||No maximum limit for investment with 0% tax deduction at source|
|National Saving Scheme||Income tax exemption on principal amount as well as earned interest up to Rs. 9,000.|
|Public provident Fund (PPF)||Minimum yearly investment of just Rs. 500 to a maximum of Rs. 1,50,000.|
|Post Office Saving Schemes|
|Senior Citizen Saving Scheme (SCSS)||The tenure of a SCSS portfolio is 5 years. The applicant can make only one deposit into the account. This amount should be in multiples of Rs. 1,000 and must not exceed a maximum of Rs. 15 lakhs|
|Kisan Vikas Patra (KVP)||The minimum purchase value for the KVP is Rs. 1,000. There is no maximum limit.|
|Sukanya Samriddhi Account||The opening amount for the SSY account is Rs. 1,000. The minimum deposit into the account must amount to Rs. 1,000, the maximum limit is Rs. 1,50,000 per year.|
|Atal Pension Yojna||Citizens of India between the age groups of 18-40 years can apply for this Scheme. The applicant however must have an active savings bank account.|
|Employee Provident Fund (EPF)||Administered by the Employees’ Provident Fund Organisation (EPFO), this scheme for workers involves compulsory monetary contribution into a specified ‘provident fund’ account that will act at a later date as their retirement fund.|
|National Pension System (NPS)||The National Pension System offers retired individuals the security of a regular income (pension) thanks to small investments made to this pension fund while they were gainfully employed.|
|Voluntary Provident Fund (VPF)||VPF allows subscriber to willingly contribute up to 100% of their basic salary and dearness allowance into their respective EPF, instead of the usual 12%.|
|Deposit Scheme for Retiring Govt Employees
|This scheme is particularly aimed at benefitting retiring public sector employees. A simple Saving Scheme that draws on its ease of registration and documentation.|
Most importantly, Saving Scheme will help you cultivate the habit of regularly setting aside money for investment.
So stop postponing and start saving today!