Saving money is great option, but it’s even better when we are paid to do so. The greatest approach to manage finances, save money, and earn a respectable interest rate at the same time is to invest in savings plans in India. Let’s go through this article to understand a quick view about top 10 best saving plans  offered in India  or approaches as described.

Savings programs are available in several formats. one can start saving little amount each month and which may grow up to greater sums once or twice a year. While some savings plans let allow to make lump sum contributions at any time of the year, sometimes it offers’ to set away a certain amount of income quarterly or month too.

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Top 10 Best Savings Plans In India

 

In India, PPF is the most well-liked and secure way to save money. If some one invests up to Rs. 1.5 lakh every financial year, and then can claim tax deductions for contributions made to PPF account under section 80C of the Income Tax Act. Amount can be invested up to ₹1.5 lakhs in a single financial year and or can be made a minimum yearly commitment of ₹500 to PPF account. The annual interest rate on deposits is 7.1%, compounded annually.

Interest rate: Varies, current 7.1%

Lock-in Period: 15 years

Minimum Investment: Rs 500 per year

Maximum Investment: Rs 1.5 lakh per year

We may save money at the post office with the Post Office Monthly Income Scheme (MPI), a savings and investment program. Through the program, by paying money into account on a regular basis returns interest. It’s a low-risk way to make money that gives monthly income. All Indian citizens are eligible to participate in this savings plan, and children over the age of ten may also begin with it.

Interest rate: 7.4%

Lock-in Period: 5 Year

Minimum Investment:  Rs. 9 lakh individually or

Maximum Investment: Rs.15 lakh jointly

Employees may save for a safe retirement by contributing a percentage of their earnings to the National Pension Scheme (NPS). It is run by the federal government and provides extra advantages including interest on donations and medical insurance through social security. The program’s goal is to give retirees and their families a reliable income so they may age comfortably financially.

Interest rate: Based on returns of pension funds

Lock-in Period: 60 years

Minimum Investment: Rs 1,000 per year

Maximum Investment: None

Government securities with a gold weight measured in grams are called Sovereign Gold Bonds. They serve as an alternative to actually possessing gold. The issuance price must be paid by investors, and the bonds will be reimbursed when they mature. The Reserve Bank is the issuer of the Bond on behalf of the Indian government. Customers can use our online banking service and any BOI branch to purchase SGB.

Interest rate: 2.5% per annum

Lock-in Period: Five-year lock-in period and a maturity period of eight years

Minimum Investment: 1 gram of gold

Maximum Investment: 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts

A unique type of investment known as a Unit Linked Insurance Plan (ULIP) combines the advantages of investing options with insurance coverage. It is a single plan that provides two advantages. Under ULIP, the investor pays a premium, some of which is allocated to life insurance and the remainder to debt, equities, or balanced funds. For Indians, it is an adaptable investment option. In accordance with the 1961 Income Tax Act, ULIPs provide tax advantages. Under Section 80C, life insurance premiums are deductible from taxes up to a certain amount. There is a five-year lock-in term included as well.

Interest rate: Varies, not fixed.

Lock-in Period: 5 – 20 years

Minimum Investment: Rs 2,500

Maximum Investment: No Limit

Gold Exchange Traded Funds (ETFs) are straightforward financial instruments that blend the ease of gold investing with the flexibility of stock investing. Like any other firm stock, exchange-traded funds (ETFs) are traded on the National Stock Exchange’s cash market and are always available for purchase and sale at market rates.

Interest rate: Varies, lump sump 14.87%

Lock-in Period: Nil

Minimum Investment: 1 Gram

Maximum Investment: No Specification

The government backs the secure savings initiative Kisan Vikas Patra. Originally intended primarily for farmers, it is now accessible to a wider range of people and is seen as a lucrative investment. This plan (last updated on January 3, 2024) provides a 7.2% annual return rate.

Interest rate: 7.2%

Lock-in Period: 2 Years 6 months, and 30 months

Minimum Investment: 1000

Maximum Investment: No Specification

In India, a social security program for workers’ retirement savings is called the Employee Provident Fund (EPFO). Each month, monies are contributed by both employers and workers. The employee’s share is equal to 12% of their base pay + dearness allowance. Under Section 80C of the Income Tax Act, funds are tax deductible; withdrawals made after five years are free from taxes. It offers workers stability and financial security when they retir

Interest rate: 8.25%

Lock-in Period: Nil

Minimum Investment:  12% of Basic

Maximum Investment: Nil

Indians may make safe investments with the SCSS savings plan, which was created by the government and backed by the finance ministry. With a single or combined account, the maximum investment amount is ₹15 lakh, not to exceed retirement savings. Being over 55, receiving government pension payments, or retiring early are among the requirements for eligibility.  Under Section 80C of the Indian Income Tax Act, the plan offers tax deductions up to ₹1,50,000 throughout its standard five-year term, which is extended by three years. There is a 1% deduction for early closure during the first two years. An investor is only allowed one extension, after which closure is allowed without penalty for an additional year.

Interest rate: 8.2%

Lock-in Period: 5 Years , can be extended for next 3 years

Minimum Investment:  Rs 1,000

Maximum Investment: Rs 30,00,000

A government savings program called the Sukanya Samriddhi Yojana enables parents or legal guardians to register an account for a girl child who is 10 years old or younger. The account matures 21 years after it is opened, or after the age of 18 if the kid marries. After she turns 18, she can prematurely take up to 50% of her initial investment from the account—even if she isn’t getting married. this plan can be considered to which is best savings plan for girl child in India

Interest rate: 8.2%

Lock-in Period: 21 Years

Minimum Investment:  Rs 1,000

Maximum Investment: Rs 15,00,00

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Also Read: https://www.outlookmoney.com/

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