Saving money is a great way to build wealth and secure your financial future. With the right savings instruments, you can get a high return on your investments while also taking advantage of tax benefits. In India, there are a variety of financial savings instruments available. Here are the top 5 financial savings instruments in India.
- 1. Fixed Deposits: Fixed deposits are one of the most popular financial savings instruments in India. They offer high returns with low risk and are ideal for those looking to save for a long period of time. The interest rate on fixed deposits depends on the amount you deposit and the tenure of the deposit.
- 2. Public Provident Fund (PPF): PPF is a long-term savings instrument offered by the Indian government. It offers tax benefits and has a fixed interest rate of 8.0%. The minimum deposit for a PPF account is Rs 500, and the maximum limit is Rs 1.5 lakhs per year.
- 3. National Savings Certificate (NSC): NSC is a savings instrument offered by the Indian government. It provides a fixed rate of interest and offers tax benefits. The minimum deposit for an NSC account is Rs 100, and the maximum limit is Rs 1.5 lakhs per year.
- 4. Senior Citizen Savings Scheme (SCSS): SCSS is a savings instrument designed for senior citizens. It offers an interest rate of 8.6% and provides tax benefits. The minimum deposit for an SCSS account is Rs 1000, and the maximum limit is Rs 15 lakhs per year.
- 5. Unit Linked Insurance Plans (ULIPs): ULIPs are a type of insurance plan that provides both life insurance coverage and investment opportunities. They offer a variety of features, including tax benefits and the ability to switch between different funds.
These are the top 5 financial savings instruments in India. Each instrument has its own advantages and disadvantages, so it’s important to do your research before investing. With the right financial instrument, you can save a substantial amount of money and enjoy a secure financial future.
Leave a Reply