With Just Rs. 500, Here Are Some Smart Money Moves To Make

By Adhil Shetty | March 7, 2020

You can invest in some good instruments with Rs. 500 or less to secure for your future. Read on to know the options you have.

With Just Rs. 500, Here Are Some Smart Money Moves To Make

It’s always wise to save money to secure your future, but it is even wiser to put those savings into instruments that can help you tide over any contingency. You don’t need a huge amount to start investing. There are various schemes that can give you guaranteed returns on an investment of Rs. 500 or less per month or annually.

Let’s take a look at a few schemes:

Pradhan Mantri Suraksha Bima Yojana (PMSBY) @ Rs. 12 per annum:

Unbelievable, yet true! This scheme has an annual premium of just Rs. 12, exclusive of taxes. This is a government-backed accident insurance scheme open for all Indian citizens between the age group of 18 -70 years. The nominee will receive Rs 2 lakh in case of accidental death or full disability of the policyholder or Rs 1 lakh in case of partial permanent disability. All bank-account holders can avail this scheme through their netbanking services. This scheme will have one year cover, starting from June 1 of current year to May 31 of the next year, on an annual renewal basis.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) @ Rs. 330 per annum:

This is another government-backed scheme which provides a life cover of Rs. 2 lakh on death of the insure, irrespective of the reason. With a premium as low as Rs. 330 per annum, this is an affordable life insurance plan for people between 18 and 50 years of age. Like PMSBY, this facility too can be availed through netbanking and the amount gets auto-debited from your account, and it is renewable on an annual basis. Once the insured reaches the age of 55, the policy comes to an end.

Public Provident Fund @ Rs. 500 per year:

This is a popular investment-cum-tax saving option to generate savings. You can open your PPF account with a minimum investment of Rs. 100, and can maintain the account with investments of Rs. 500 per year to Rs. 1.5 lakh per year. However, if you deposit more than Rs 1.5 lakh per financial year in this fund, the extra investment won’t generate any interest. The interest rate on PPF is fixed every quarter by the government. Currently, the interest rate on PPF has been set at 7.9%, compounded annually. Under Section 80C of Income Tax, annual contributions towards PPF qualify for tax deductions up to R.s 1.5 lakh per financial year.

Equity Mutual Fund SIP @ Rs. 500 per month:

This is the best move you can make with Rs. 500 as you get a chance to invest in stock markets, even if you’re not well-versed with it. SIP investments not only guarantee lucrative returns in the long run but also helps to secure your future. All you need to do is register yourself with a reputed mutual fund house.

Atal Pension Yojana @ Rs 42 per month:

This scheme is aimed at the economically weaker section of the society to encourage them to save for their retirement days. This will also help them get a guaranteed long-term pension amount. Once you invest in this plan, you will start getting a fixed pension after the age of 60. The pension amount will depend on your contribution and tenure of contribution. You can start investing in this plan at the age of 18 and can invest till you are 60. The minimum monthly contribution in this plan is Rs. 42 per month and you will receive Rs. 1000 as pension amount at the end of the term. The premium will gradually increase depending on the plan chosen.

Since all these plans help secure your future at a low cost, choose the best plan according to your needs.

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Adhil Shetty

About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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