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How to manage your monthly salary better?

  • Highlights

  • Start by investing your salary in safe instruments

  • Pick options that don’t demand high investment amounts

  • Rely on EPF and PPF for long-term savings

  • Use FDs for inflation-proof returns in a short span of time

Making investments is not only necessary for your financial security in future, but also for achieving your goals. Even if you have no prior experience, you can dip your toes in the world of investments by taking small steps with scores of safe options. These don’t require ample time or money. Simply diverting a small portion of your monthly salary will do the trick.
Best of all, these instruments are completely secure, which means that your money is going to earn you stable returns.

Here are 3 such investments that you can get started with, as soon as you receive your pay cheque.

Employee Provident Fund

This is a scheme that was started by the Government of India in order to help salaried Indians save regularly for retirement. Here, you contribute a portion of your salary towards your EPF account as does your employer. You can access the amount when you retire, or two months after you quit a job. The latter, however, is not advisable as you lose out on returns.

Currently, the EPF interest rate is 8.65%. Since the amount is deducted from your salary before it is paid to you, it’s the simplest investment. While it is mandatory for certain organisations to have EPF for employees, if your company doesn’t have it, you can request your employer to start it.

Public Provident Fund

Another scheme initiated by the government, Public Provident Fund or PPF is a long-term investment vehicle with a lock-in period of 15 years. Once your tenor is up, you can continue to renew your PPF in instalments of 5 years. Here the entire contribution is borne by you, but you can start one by paying as little as Rs. 500 per year. While the lock-in period is significant, you can make partial withdrawals after a few years and also get a loan by using your PPF investment as collateral.

Fixed deposits

The third, and most beneficial investment of the lot, is a fixed deposit. It is offered by post offices, banks and companies or NBFCs, so you can start investing without any hassle. FDs offered by NBFCs are considered to be most beneficial, as they offer some of the highest interest rates. For instance, Bajaj Finance Fixed Deposit offers one of the highest FD interest rates. You can choose a tenor as per your choice, but it’s best to invest for around 36 months as this duration offers you inflation-beating returns.

It’s recommended that you invest in FD with whatever amount you can spare, and once you claim your PPF or EPF, reinvest the sum in a company FD. While it isn’t secured by the government, one with a high credit rating is just as safe. Those that carry high credibility ratings by CRISIL and ICRA, such as Bajaj Finance FDs, are a good example of this. By reinvesting, you allow your money to grow further without exposing it to any risk.

With online application, a minimum investment amount of just Rs.25,000 and the option to receive periodic payouts to assist with your expenses, the Bajaj Finance Fixed Deposit is worth its weight in gold. Best of all, you can apply and manage your investment online. Use the FD calculator to forecast your returns beforehand, choose the right principal amount and tenor accordingly, and fill a short online form. Getting started is as easy as that!

DISCLAIMER: The mentioned fixed deposit interest rates are indicative only, and may be subject to change periodically. Please check the interest rates on our website.

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End Use

How to put your appraised salary to good use