Savings don’t just help you safeguard your money, but also offer you additional income if you choose to invest prudently. You can take control of your financial situation by inculcating the best financial management habits.
Amid the best savings schemes, fixed deposits are the most preferred investment option because of their stability and high returns. You can also look for some other saving schemes that work for you. Here are some of the best schemes that you should consider for investments:
1. Mutual Funds
Mutual funds involve a pool of investments that can be managed by an asset management company. These investments yield returns in the form of dividends over time. Mutual funds have the following benefits:
- Tax benefits under Section 80C of the Income Tax Act, so you can enjoy tax-free returns
- Likelihood of earning higher returns
- Higher liquidity
Additional Read: Best saving schemes in India
2. Atal pension
This is another tax-free scheme designed for people from the low-income group. Investors of 60 and above years can opt for a fixed pension of up to Rs. 5,000. It also provides a pension for retirees, along with benefits at the cost of a contribution per month.
3. Pradhan Mantri Jan Dhan scheme
Jan Dhan Yojana is created for farmers and those in rural areas. It offers financial services of remittance, deposits, credit card and much more. It features an overdraft facility to up to Rs. 5,000, along with a RuPay debit card and an accident insurance of up to Rs. 1 lakh.
Self-employed and salaried individuals can invest a sum of up to Rs. 1.5 lakh in a PPF account and gain from tax benefits over the returns. Public provident funds are designed by the government for the working class to invest pools of savings. This option provides steady interest over your savings and ensures that they mature over time.
Additional Read: Everything you wanted to know about PPF
5. Jeevan Jyoti Bima
This is a life insurance scheme created by the government of India. In case of death of the person insured, it offers the nominee up to Rs. 2 lakh. It features an annual premium of Rs. 330.
Among all these saving schemes, fixed deposits stand out as safe and reliable investments, where investors get guaranteed returns on maturity of their FDs. You can choose between a cumulative interest payout or a non-cumulative payout that offers interest for their use on chosen intervals.
Invest smartly and wisely by finding out which investment option works for you and gives you returns as well as tax deductions.
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