Everyone has financial goals, especially when it comes to keeping themselves and their loved ones’ future secure. Have you also invested in any of such plans that ensure the same, or are you looking forward to doing so? Well, it’s like a smooth walk if you’re aware of the right things.
Now, many of you might be wondering where to begin. In such a case, going for sustainable investment options that offer long-term returns can be ideal. Therefore, you must select a savings scheme that helps you fulfil your financial goals and ensure stability for the future.
Let us help you with some practical strategies to choose the best saving scheme.
What is a Savings Scheme?
A savings scheme is a financial tool to help you fulfil your financial goal over a period of time. There are different schemes available with different purposes and investment horizons, interest rates and tax benefits. Recently, insurance-linked plans like ULIPs have gained traction due to their coverage and savings benefits. Therefore, to select a suitable plan, you must know certain things.
Tips to Secure a Sustainable Savings Plan
Financial position, risk tolerance, etc., are basic things that you must keep in mind while considering investments in any scheme. However, for a sustainable and favourable savings scheme, here are a few tips:
- Evaluate your financial position to know how much you can invest accordingly.
- Consider the investment tenure and its risk.
- Understand the ins and outs of the plan you’d invest in.
- Know the place you’re getting the savings plan from.
Exploring Savings and Investment Plans
The benefits you may reap from a saving or investment plan are based on several aspects. This may include risk level, tenure, invested amount, etc. Here are a few of them mentioned below:
- Low-Risk Plans
Being an investor with a low-risk appetite, you may choose a savings plan with low or no volatility to invest in may be ideal. These options are reliable and offer stable growth with minimal risk. Most low-risk savings schemes like, EPF, PPF, etc., typically have a long lock-in period, ensuring security and steady returns.
- Moderate Risk Plans
Low-risk savings and investment plans provide a balanced, diversified investment option. These plans allocate your investment into a mix of debt and equity, offering security and potential for growth.
- High-Risk Plans
ULIPs and Equity and Balanced Mutual Funds are two examples of high-risk savings and investment plans. ULIPs combine insurance and market-related investment, offering insured choices in equity, debt or a combination of both. Equity and Balanced Mutual Funds, managed by Asset Management Companies, invest in instruments ranging from equity to long-term bonds for all kinds of risk factors.
Some of the Best Saving Scheme in India
If you decide to invest in the savings scheme, there are a number of options available provided by the Government of India. You can select from as per your financial needs and long-term plans:
| Saving Scheme | Interest Rate | Description |
| Senior Citizen Saving Scheme (SCSS) | 8.2% | Allows investments for those who have retired early. The amount ranges from Rs 1,000 to Rs 15 lakh for five years and is extendable by three years. Early closure is penalty-free. |
| Public Provident Fund (PPF) | 7.10% | The PPF is a top saving scheme in India, ideal for retirement. Any Indian citizen can open one PPF account. Withdraw the full amount after 15 years or extend by five years. Partial withdrawals are allowed from the 6th year, limited to 50% of the balance annually. |
| Employees Provident Fund (EPF) | 8.15% | Long-term savings scheme for post-retirement, with both employer and employee contributing 12% of the monthly salary. It offers an 8.5% interest rate and tax benefits under Section 80C. |
| Voluntary Provident Fund (VPF) | 8.25% | VPF is a top monthly savings scheme for employees not in EPF. Salaried employees can contribute up to 100% of their basic salary and dearness allowance. It offers an 8.5% interest rate, tax deductions up to Rs 1.5 lakhs, and partial withdrawals after 5 years. |
Which Savings Scheme are You Going to Invest in?
Out of several savings plans, investing in an insurance plan is a great step to protect your family’s financial future. It helps if something unexpected happens, like a health problem or a rise in your child’s education fee. Alongside helping you in these situations, it acts as a savings scheme, too.
Insurance providers like Canara HSBC Life Insurance provide various plans that have both insurance and investment elements. Their ISelect Guaranteed Future Plus and Invest 4G are smart choices for establishing a strong savings strategy. By investing wisely, you can build a better tomorrow, ensuring that your loved ones are well-protected and financially secure.
