The Government of India or public sector financial organizations or banks promote saving schemes. Their interest rates, investment horizons, and tax regimes differ. The best saving plan protects us financially from unanticipated personal and medical catastrophes.
It assists you with meeting your objectives as well as those of your family, such as further education courses to augment your existing qualifications, your child’s higher education and marriage, and so on.
Different types of Saving Schemes along with their Benefits
Some of the various available schemes are mentioned below:
1. Public Provident Fund (PPF)
The Government of India or public sector financial organisations or banks promote saving schemes. Their interest rates, investment horizons, and tax regimes differ. The best saving plan protects us financially from unanticipated personal and medical catastrophes.
It assists you with meeting your objectives as well as those of your family, such as further education courses to augment your existing qualifications, your child’s higher education and marriage, and so on.
2. Employees’ Provident Fund (EPF)
The Employees’ Provident Fund Organisation (EPFO) established the EPF plan with the primary goal of assisting employees in saving money for retirement. Companies with more than 20 workers are required to contribute to the EPF system. The employee and the employer both contribute 12% of the employee’s Dearness Allowance (DA) and basic salary to the plan.
Employees can withdraw cash from the program for medical crises, home building, home purchase or land purchase, home loan repayment, and so on. The scheme’s interest rate for the fiscal year 2018-2019 is 8.65 per cent per annum. The EPFO determines the interest rate yearly.
3. National Pension System (NPS)
The Central Government established the NPS with the primary goal of providing citizens with a monthly income after retirement. Employees can make use of the scheme’s advantages by paying a nominal fee.
Employees will get a lump sum payment at the time of retirement, as well as a specific proportion is given back as a pension monthly following retirement.
4. Sukanya Samriddhi Yojana Account (SSY)
Prime Minister Narendra Modi established the Sukanya Samriddhi Yojana (SSY) initiative to assist safeguard the future of a female child. The system now offers an interest rate of 8.5 per cent, and an SSY account can be created at post offices or banks.
The minimum and maximum deposits that may be made into the plan in a year are Rs.1,000 and Rs.1.5 lakh, respectively. The account holder must contribute to the plan for 14 years, and the scheme has a maturity term of 21 years. Individuals can move their SSY account from a bank to a post office and vice versa.
5. Atal Pension Yojana (APY)
The scheme’s principal goal is to assist those who are below the poverty level. The plan also assists persons who work in the unorganised sector and seek government assistance.
Individuals contribute a little amount to the system and get a pension upon retirement. Individuals must, however, have active savings account to profit from the plan.
The Atal Pension Yojana plan is open to citizens between the ages of 18 and 40. Contributions must be made to the plan for a minimum of 20 years.
6. Voluntary Provident Fund (VPF)
Employees might choose to participate in the VPF programme voluntarily. Employees can contribute their full basic income to the VPF plan, as opposed to the EPF system, which allows just 12 per cent of the basic salary to be donated.
Any payments made to the VPF program will effect the EPF scheme and vice versa. For the fiscal year 2018-2019, the rate of interest earned by contributions to the plan is 8.65 per cent per annum.
7. Kisan Vikas Patra (KVP)
Post offices in India provide the Kisan Vikas Patra certificate scheme. The current rate of interest given by the plan is 7.7 per cent, compounded on an annual basis. The minimum contribution required for the plan is Rs.1,000, with no upper limit. The amount invested in the plan doubles over 112 months.
Individuals can add nominees to the system, and the certificate can be moved from one person to another as well as from one post office to another. Individuals may also encash the certificate after 30 months from the day it was issued.
8. Senior Citizens Savings Scheme (SCSS)
The SCSS was established to assist people aged 60 and up. Individuals between the ages of 55 and 60 who have opted for the Voluntary Retirement Scheme (VRS) can also benefit from the SCSS.
The SCSS has a 5-year term and an annual interest rate of 8.7 per cent. Individuals must deposit a minimum of Rs.1,000 in the plan, with a maximum investment of Rs.15 lakh permitted.
9. National Savings Certificate (NSC)
The SCSS was established to assist people aged 60 and up. Individuals between the ages of 55 and 60 who have opted for the Voluntary Retirement Scheme (VRS) can also benefit from the SCSS.
The SCSS has a 5-year term and an annual interest rate of 8.7 per cent. Individuals must deposit a minimum of Rs.1,000 in the plan, with a maximum investment of Rs.15 lakh permitted.
10. Post Office Savings Scheme
The numerous saving scheme offered by India Post is quite popular since the risks are very low and the majority of the schemes give guaranteed returns.
Opening a saving schemes account at the post office is a straightforward and quick process. The plans are extremely popular due to the numerous benefits they provide.
Wrapping It Up
Saving is one of the first financial habits we are taught from the time we are very young. The idea of saving a little today to enjoy a lot tomorrow is embedded in every objective we aim for in our lives. Keeping this in mind, many people consider the best saving plan to be among the greatest investment plans in India.
