Best Saving Plans & Schemes in India

Savings plans are tools that people can use to meet their financial goals over a specific time period. The Indian government, as well as banks from the public and private sectors, have introduced these schemes.

The interest rate for these schemes is determined by the government or banks and is changed on a regular basis. 

The money you save through these plans can be used for a variety of things, including debt repayment, higher education, retirement, marriage, children's education, and other expenses.


Best Saving Plans & Schemes in India

Types of Saving Schemes

Public Provident Fund (PPF)

The Public Provident Fund (PPF) scheme is amongst the most well-liked and safe investment options in the country. Benefits provided to the scheme and the interest that results from such contributions both are tax-exempt under Section 80C of the Income Tax Act.

Employees’ Provident Fund (EPF)

The Employees' Provident Fund Organization (EPFO) launched the EPF schemes with the primary objective of assisting employees with retirement money. Companies with more than 20 employees are required to contribute to the EPF scheme. The employee and the employer each contribute 12% of the employee's DA and basic income to the scheme.

National Pension System (NPS)

The Central Government set up the NPS with the major goal of providing individuals with a regular income after retirement. By paying a nominal premium payment, employees can profit from the scheme.

Employees will receive a lump sum amount at the time of their retirement as well as a certain percentage will be paid back as pension on a monthly basis after their retirement.

National Savings Certificate (NSC)

The NSC scheme is one of the most well-known in India. Guaranteed returns and tax advantages are offered because the scheme is approved by the Indian government. Individuals can invest in the plan at post offices, and it has a 5-year term. The interest rates for the scheme are set on a quarterly basis by the Indian government.

Government Bonds

To encourage domestic participation in the sovereign bond market, the Indian government has opened direct bond purchases for individual investors, who before could only trade in government bonds via gilt mutual funds.


Conclusion

Investing your money in financial instruments that may yield a return carries its own set of dangers. Before making an investment, it is prudent to properly research the potential risks associated with the product in statement.


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