Where Can I Save Money For The Future?

2024-08-02

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Every individual wishes to improve their wealth to take good care of them and their loved ones, and holding enough money is one of the quintessential aspects of an accomplished life. Saving funds for the future is one of the habits that successful people hold. Moreover, after looking at the present situation in the country and across the globe, saving funds for future emergencies have become more important than ever. One clever way to enhance your wealth and save funds for the future is by investing in various financial instruments or in the best savings plan.

Six Best Money Saving Plans

Any difficulty can arrive unannounced, and it might drain all your financial savings. Hence, it is always essential to remain well-prepared for such problems in advance and keep some funds aside for contingencies.

Due to the increase in saving habits of individuals in current times, many money-saving instruments are offered by various financial institutions, government and banks to foster the habit of saving. However, to obtain the best return on your investment, choosing an appropriate money-saving plan according to your needs and saving capacity is important.

Mentioned below are some of the best money-saving plans for 2021:

1. National Savings Certificate

National Savings Certificate is another fixed income saving policy that you can get from your nearest post office. This money-saving scheme was initiated by the Government of India that encourages people, principally from low or mid-income levels, to invest their funds and save on income tax.

This National Savings Certificate (NSC) is a relatively low-risk investment plan that yields fixed and higher returns. However, one important thing that an investor must keep in mind is that to avail the National Saving certificate; a person must be over 18 years of age.

Apart from this, there are no upper limits on investing your funds in an NSC and investments of up to Rs 1.5 lakhs are exempted from tax under Section 80C of the Indian Income Tax Act, 1961.

2. Recurring Deposits

RD is one of the most suitable savings plans to save money for your future. This money-saving plan is a term deposit policy that entails frequent payments so that you receive a lump sum along with interest amount after a fixed period.

Apart from this, people hold the liberty to pick the term period, the sum they wish to spend, and frequency deposits as per suitability. However, one important thing that you must keep in mind while investing funds in a Recurring Deposit (RD) is that financial institutions and banks do not allow investors to withdraw funds prematurely.

If due to any circumstance, a person wishes to withdraw funds from an RD account before a fixed term, the bank would levy a penalty. It further extends the higher interest rate for senior citizens, and it can additionally be utilised as security for obtaining loans.

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3. Senior Citizen Savings Scheme

Senior Citizen Savings Scheme is another money-saving investment plan that extends higher security and steady income. You can easily get this money-saving plan from your nearest post office or any leading bank or financial institution.

This savings plan is mainly designed for senior citizens who have attained 60 years of age. However, people who are between 55 to 60 years of age can also invest their funds in a Senior Citizen Savings Scheme if they have taken Voluntary Retirement Scheme (VRS) or superannuation .

A Senior Citizen Savings Scheme investment must always be made within one month past getting the superannuation advantages. In addition to this, investing funds in the Senior Citizen Savings Scheme will further allow investors to claim income tax deductions up to Rs 1.5 lakhs under Section 80C of the Indian Income Tax, 1961.

4. Post Office Monthly Income Scheme

Post Office Monthly Income Schemes (MIS) a moderate-risk monthly income plan where a small sum is invested every month along with the payment of interest. It additionally creates a regular income as funds invested is protected till the maturity period as this scheme is an initiative of the Government of India.

This policy further allows the investors to withdraw funds anytime and invest again in the same scheme once completing the maturity period.

5. PPF (Public Provident Funds)

Public Provident Fund (PPF) is another government-supported money-saving scheme that is the most secure and popular investment option. A person investing in a Public Provident Fund will further receive a tax exemption on the payment made under Section 80C of the IT Act, 1961.

Apart from this, an investor can also receive a higher interest of around 7.6 per cent that is compounded annually. The advantages granted by Public Provident Funds can either be paid in a lump sum or regular monthly instalments.

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6. Kisan Vikas Patra (KVP)

KVP or Kisan Vikas Patra is another fund-saving plan that you can invest in. Under this scheme, the amount you wish to invest must always be in multiples of 100 and the minimum amount from which you can start investing in this scheme is Rs 1000.

Saving funds for the secured future of your loved ones is extremely crucial. Apart from this, saving money can also assist you in your wealth creation, and this is why it has grown essential for every individual to invest their funds in different saving plans.

An appropriate money-saving plan will always ensure that your funds remain safe from market fluctuations and you get a higher return on all your investments. If you are looking for savings plans other than those mentioned above, you can always go for Guaranteed Savings Plan by Canara HSBC Oriental Bank of Commerce.

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