5 Things That You Must Know About Saving Schemes
March 11, 2022
Investing in saving schemes can help you build adequate funds to fulfill your financial objectives such as buying a house or putting funds towards your child’s education. Apart from your regular savings, investing in a future savings plan can provide you with additional income. Most saving schemes require small regular contributions, but these contributions accumulated over time can be large.
Also, if you start saving early in life, you can build a significant corpus. These funds can be used after retirement and help you lead a stable and comfortable life. Having money backup at hand can make you spend it on unwanted items. Therefore, it is best to invest your surplus income in saving schemes.
Types of Saving Schemes
There are many different types of saving schemes available in India. Let us look at some of them: –
Public Provident Fund (PPF)
The PPF is a popular savings plan, where the investment and the interest generated are tax-exempt under section 80C of the Income Tax Act. The duration of the PPF scheme is 15 years. It can be availed at the banks and post offices.
Employees’ Provident Fund (EPF)
This is a savings plan that was launched by the Employees Provident Fund Organisation (EPFO). Its primary goal is to help employees save money for their retirement. This is compulsory for organizations with more than 20 employees. 12% of the basic salary and dearness allowance of the employee and the employer must be contributed towards the EPF scheme.
National Pension System (NPS)
NPS was launched by the central government. It helps provide regular monthly income after retirement. You can avail of the benefits of NPS by paying a small regular premium.
Sukanya Samriddhi Yojana Account (SSY)
The SSY, launched by PM Narendra Modi, helps secure the future of a girl child. The minimum deposit to be made under this savings plan in a year is Rs. 1000, and the maximum is Rs. 1.5 lakh.
Atal Pension Yojana (APY)
The main objective of Atal Pension Yojana is to help people living below the poverty line. This also provides benefits to the people working in the unorganized sector who require financial support. However, you must have active savings account to enroll in this scheme.
Voluntary Provident Fund (VPF)
The Voluntary Provident Fund can be opted by the employees voluntarily. This scheme can help contribute to your basic salary. The contributions made towards VPF always impact the EPF scheme.
The VPF scheme can be opted by the employees voluntarily. Under this scheme, the employees can contribute all of their basic salaries.
5 Things You Should Know About Saving Schemes
Most saving schemes are launched by the government, and therefore the risks of investing in them are minimal. A savings plan not only offers good returns but is also safe and secure. Let us look at some of the things you should know before investing in saving schemes: –
Returns obtained from saving schemes can help you achieve your long-term financial objectives such as retirement plans, your child’s education, or buying a house. In general, a long-term goal generates higher returns.
This is one of the most significant benefits of a savings plan. Saving schemes require minimal maintenance, and investment in these schemes is quite simple. You can even invest in these schemes online.
Safe and Secure
The regular contributions made towards saving schemes are minimal. Investing in a savings plan is safe and secure since most of these plans are offered by the government of India. All individuals want to put their funds in a safe investment option, and there is no safer investment than saving schemes.
You can avail of tax exemption on the contribution made towards a saving plan under section 80C of the Income Tax Act of India. Saving schemes offer dual benefits of building an adequate corpus and tax benefits.
Since saving schemes offer tax benefits, you should also look for tax-saving tips for salaried employees. Investing in saving schemes is one of the safest options to secure your financial future. But with so many options available in the market, finding the savings plan that best suits your requirements can be difficult. You can consider buying saving schemes from a trusted brand like Max Life Insurance. The plans offered by them are secure and reliable.
Also, Read About: Benefits, and Advantages of MUDRA Yojana Loan