Saving some money is always a good habit that will also pay up during a need. Be it a salaried professional or someone who is on the verge of retirement, saving some money helps you in many ways.
When it comes to saving money, many people do it, but what about getting a higher return on them? Yes, letting your money stay idle in a normal bank savings account won’t help you as it will earn just around 4-5% interest.
In the same context, taking out our saved income out of a bank’s saving account and moving it into some lucrative saving schemes in India will help you in the longer run.
Why Should You Invest in Saving Schemes in India?
● You can use your savings to good use in the future
● Investing in a profitable scheme can help you avail a form of income via ROIs
● You can expect better growth of your money
● Some small saving schemes such as the fixed deposit come with guaranteed returns and help you fulfil certain goals for sure
Here are some small saving schemes including the saving schemes in Post Office that will help you grab some higher income on investment or the ROI.
1) Company Fixed Deposit Scheme
With a small duration of 1 year, the company fixed deposit or the FD scheme is one of the most secured small saving schemes in India. You can keep your money invested in this and get a guaranteed or sure-shot income up to 8.75% compared to other plans. It is because the returns of the market are not affected by market conditions. What’s more, you can also liquidate it if you need some money by losing your interest income. Also, you can still stay invested and cover urgent money requirements by not breaking the plan and instead, taking a loan against the FD.
2) Atal Pension Yojana
Atal Pension Yojana is a scheme by the Central Government for retired people with many benefits when you pay some contribution cost per month. Fit for people from lower income group and tax-free, people aged 60 or more can opt for a fixed pension from Rs.1000 to Rs.5000.
3) Mutual funds
Mutual funds comprise of a pool of investments done by numerous investors which are managed by some asset management company. The investment starts yielding ROI in the form of dividends in a span of time. You can also enjoy some tax benefits under the Section 80C of the Income Tax Act when you invest in some selective schemes. However, when it comes to the returns of the mutual funds, you need to be careful as they are not sure-shot and governed by fluctuations in the market.
4) Public Provident Fund
Are you looking to invest your money in an investment plan that gives you higher returns after some years? You can opt for the Public Provident Fund or the PPF. Salaried and self-employed professionals can invest up to Rs.1.5 lakh in PPFs and even gain tax benefits. Investment done in this scheme is governed by the Government and gives you a sure-shot return.
5) Post Office Saving scheme
You can also invest your money in the Post Office Monthly Income Scheme. It has a period of 5 years with a maximum investment of up to Rs.4.5 lakh and Rs.9 lakh for joint ownership. You get 7.5% interest which is taxable but it gets transferred to your savings account.
Thus you can choose the Best schemes for saving your money as per your needs. One should invest smartly and let the money grow over a time with the discussed small saving schemes in India.