Don’t let your financial worries eat up your present

Money is an important factor in everyone’s life. Everyone wants to lead a life full of luxury and happiness. But not everyone is able to achieve that kind of financial freedom.

Apart from personal aspirations, there are a lot of financial obligations like child education, marriage, buying or constructing a house, etc. Hence it is paramount that our money is invested in the best investment plan that will help us achieve all our financial goals.

There are many savings plans available that can help you grow your money as part of your financial plan.

Putting away money every month only helps us in inculcating good financial discipline but the crucial thing is selecting the best saving plan that will maximize your returns and keep your financial worries at bay.

The following are some of the best saving plans in India:

1. Public Provident Fund:

• Also known as PPF, this savings plan is one of the best investment plans available in India.
• The plan offers tax benefits and high returns, making it an excellent option for those looking to save for their future aspirations.
• PPF falls under the Exempt-Exempt-Exempt category. It means that the returns made and the total amount is not taxable.
• The contribution made in PPF can be used for tax deduction under section 80C of the income tax act.
• One can invest as low as ₹500 to a maximum of ₹1,50,000 per annum. The PPF scheme is currently offering 7.1% (as of 2022) per annum

2. National Pension Scheme (NPS):

• Retirement savings are made possible with the help of this retirement saving plan, which offers several tax benefits and the potential for high returns. It’s a great option for those looking to save for their retirement needs.
• The accumulation of pension wealth over retirement grows with compounding over time.
• One can avail of tax benefits under sections 80C and 80CCD of the income tax act.
• NPS gives the option of where to put money. One chooses the % exposure to equity and debt mediums.
• The PRAN(Permanent Retirement Account Number) will be sent to you as soon as you make a deposit (not less than ₹500 or ₹250 monthly or ₹1,000 annually)

3. Mutual Funds: 

• Mutual funds are one of the best saving plan in India. There is a lot of variety available in the mutual fund space.
• Right from debt mutual funds to tax-saving funds to thematic funds. These mutual funds are a gateway for wealth creation and accumulation.
• If you are looking for a way to spread your risk and obtain high returns on investment, this is an excellent option.
• The returns on mutual funds vary. One can expect a 15-18% return on investment every year. Although mutual funds are equity-linked, the returns vary depending on the marketing volatility.
• Investors with different risk appetites can choose from a wide variety of funds provided by several fund houses in India.

4. Sovereign Gold bonds(SGB):

• SGBs are a very good alternative to physical gold. As these bonds are issued by the Government of India, it makes it the best investment plan.
• This scheme allows you to invest in gold and offers several tax benefits as well as the potential for high returns.
• Those who want to protect their savings from inflation and market volatility will appreciate this product.
• These SGB schemes mythdhr give a 2.50% return on the investment which is tax-exempt. All the risks involved with physical gold are eliminated.
• A tenure of eight years is provided, with the option to exit the bond after the fifth year and sixth month. Holding certificates are issued as proof of investment.

5. Post Office Savings Scheme:

• This scheme is offered by the Indian post office and offers tax benefits as well as high returns on investments. It’s an excellent option for a safe and best investment plan.
• Post office savings accounts can be opened with a minimum deposit of 500 rupees by individuals or jointly owned by individuals residing at one address and their family members (spouses included).
• Interest rate is 4% p.a.

6. Sukanya Samruddhi Yojana:

• This scheme was introduced by the Government of India under the Beti Bachao Beti Padhao campaign for the betterment of girl children in the country and is one of the best saving plans in India for girls.
• SSY has the highest return among any of the saving plans available in India.
• It has a maturity tenure of 21 years. A minimum contribution of ₹250 to a maximum contribution of ₹1,50,000 every year.
• The interest rate is 7.6% per annum (as of 2022). The contributions made towards SSY are deductible under section 80C of the income tax act.
• An investment made in the SSY can be used for higher education and the marriage of the girl child.

7. Fixed Deposit:

• Fixed deposits are the most used investment plan in India.
• If you are looking for a no-risk, stable and secure instrument, FDs are the best investment plan.
• Being highly liquid, FDs are a suitable medium for emergency saving funds or a saving fund for short term duration.
• The rate of interest given on FDs varies between 2.8% – 6% for general citizens. While senior citizens can get an interest of up to 6.5% in selected banks.
• If you are a senior citizen and don’t want to risk your money in equity or equity related schemes, then Fixed Deposits are suitable for you.

8. Senior Citizen Saving Scheme:

• Senior citizens can participate in this scheme, which offers tax benefits and high returns on investments. Those who want to save for their retirement will find it to be a great option.
• You start with as low as ₹ 1000 to a maximum of ₹ 15 lacs.
• The Senior Citizen Saving Scheme is currently offering 7.4% (as of 2022) per annum.

9. Child investment plans:

• Everyone wants their children to achieve great success in life. Hence it is also paramount to secure the future of our children.
• This is precisely where child investment plans come into the picture. These investment plans mitigate the risk and secure your child’s future in any case of uncertain events.
• Banks offer this scheme and allow parents to save for their children’s education and future expenses.
• It offers tax benefits under section 80C of the income tax act. It also provides high returns, making it an excellent option for those looking to provide for their children’s future.
• Child investment plans are a good way of securing your children’s future and making them safe from any kind of uncertainties.

10. Unit Linked Insurance Plans (ULIPs):

• ULIPs are insurance plans that offer the potential for high returns and the security of life insurance coverage.
• They are an excellent option for a savings plan that offers both security and growth potential.
• Also, ULIPs are tailor-made to help you earn maximum returns by allowing you to transfer money between different funds.

Investing in the best investment plan is essential to leading a stress-free life. Planned investments allow you to obtain all of these goals quickly by providing you with financial protection while building your corpus over time.

Conclusion

Money management involves saving money, and you can grow your money by choosing one of several different savings plans available in India. There are many saving plans, and selecting the best saving plan in India can seem challenging. The effort, however, is worth it.

By contributing to these best investment plans, you can ensure that your future is secure and stable. The systematic and disciplined growth of money is different from other investment methods.