Top 10 saving options

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Saving is important in our daily life. When we consider the term saving first thing that considers in our mind is to invest in a bank or post office. The main reason behind these investments is they provide you the security of your initial amount along with interest rate. In the present situation where most people depend upon savings due to COVID-19, a question generally occurs in the mind of a person where we should invest? how can we cover our necessities with the interest rate? No matter bank and post offices provide you interest rate but are they sufficient in the situation of inflation? In this article, you need to get to know about different saving schemes which help you to earn a sufficient rate of interest.

  1. Public Provident Fund: – This is one of the safest options for saving. It attracts most of the customers because of its interest rate. PPF provides you an interest rate of 7.6% per annum. It is the government investment that helps you to earn interest as well as to earn deduction under section 80C of Income Tax Act, 1961.
  2. Fixed Deposit: – when you think about depositing money in bank first option comes in your mind is to deposit in a savings account but saving account offers you a low-interest rate. A fixed deposit is the best option for those who want to save their money in the bank. A fixed deposit offers you an interest rate of 6.25% which is more than a savings account. The period of FD varies from 7 days to 10 years.
  3. National Saving Certificate: – This scheme is introduced by the Government of India to encourage the habit of savings between the citizens. This certificate offers a fixed rate of return with low risk. Because of the government saving option, there is the security of return is available which attracts more consumers who are not willing to take risks. The current interest rate offers under NSC scheme is 7.7%
  4. Gold: – gold is considered one of the saving options as purchasing the gold helps you save money in the form of gold. You can get money by selling gold. Usually, people prefer to invest in gold coins, paper gold, etc. Banks also offer gold loans to customers.
  5. Debt mutual fund: – Mutual fund is considered as an investment option for those investors who are ready to invest but are not willing to take risks. These mutual funds offer a fixed rate of interest to the investors. The risk level is low which attracts risk averters.
  6. Equity shares: – The persons who are willing to take risks and want to grow the amount of investment. More the risk, the more the profit. Risk-takers generally prefer to purchase the equity shares because the profit or return on these investments is not limited. Equity shareholders can also face losses.
  7. Kisan Vikas Patra: – in this saving scheme amount deposited will be doubled within 9 years. The minimum amount is required for saving is Rs. 1000. This scheme is generally preferred by those who look for small saving schemes.
  8. Insurance: – Insurance scheme is also saving option as it covers the risk and at the maturity period the initial amount along with interest is provided to insuree.
  9. National Pension Scheme: – This scheme offers to the employees who want to earn income after retirement. This saving option provides monthly income after retirement to employees. You need to deposit the amount within the tenure of your service.
  10. Real estate: – investment in property or lands is considered as saving options as you can earn two types of income from this- rental and selling.

The above mention saving options must be considered before selecting a saving option as a focus on that investment scheme which provides a high rate of return with a moderate level of risk.

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