Best Savings Plan to invest in 2022

It is crucial to understand the benefits of different saving plans in India. Read this to know about best saving plans and its benefits.

You can become rich too with this investment

Most people dream of having a financially free life—a life where they can enjoy their time without worrying about anything.

But it is a distant dream for many as they are not aware of the path to choose.

There is no shortage of saving plans. Investing in good programs is different from narrowing down and choosing the suitable strategy for you. Hence it is crucial to understand the benefits of savings plan available in India.

In this article, we will be discussing various saving plans in India.

Saving Plans in India

India has a lot of varieties when it comes to saving plans. To choose the best saving plan in India, you will need to understand the benefits of savings plan.

The following are some of the best savings plans to invest in 2022.

1. National Savings Certificate

Govt of India issues NSC. They are suitable for people in business and salaried employees. It is one of the most reliable savings plans in India. There are two types of NSC –

The rate of interest of NSC is quite attractive. They provide returns better than fixed deposits. The maximum investment duration is five years for the VIII issue and ten years for the IX issue.

Every year, Govt of India sets the rate of return, and the current recovery is 8.5% and 8.8% for the VIII and IX issues.

Benefits-

2. Life Insurance

Life is uncertain, and we never know what event can occur. The recent pandemic has proved why it is essential to have insurance. Life insurance cum savings plan is the best saving plan in India.

Plans like Canara HSBC OBC Life Insurance’s Guaranteed Income4Life plan provides

These plans are highly flexible wrt premium payment and sum assured.

Benefits

3. Recurring Deposits

RDs are an enhanced version of Fixed Deposit. RDs make the best instrument for emergency funds and short-term goals. It is the best plan for having high liquidity.

Benefits-

4. Mutual Funds

It is one of the most widely used instruments for savings. Mutual funds are a type of managed investment scheme. Investors use them to pool their money together and grow wealth through investments. Mutual funds are open-ended, meaning they can buy and sell securities.
The capital gain on a mutual fund scheme depends on the performance of the securities it decides to buy. The market condition is also a factor that determines the value of the particular security purchased.

Benefits-

5. Public Provident Fund (PPF)

Public Provident Fund (PPF) is a retirement savings scheme introduced by the government of India in 1968. The plan allows you to earn interest on your investments, which is not taxable under income tax. You can open a PPF account and deposit money any time during the year.
The interest earned from this account can be claimed as part of your tax rebate under section 80C deductions. This means that your taxable income will be reduced by the amount deposited into this account.

Benefits-

6. Sukanya Samriddhi Yojana (SSY)

Govt of India introduced this savings plan the provide a better life to the girl child. The parents of the girl child can invest in SSY for a maximum of 21 years.
Return on this saving plan is one of the best among the other plans.
Parents can use the amount accumulated under Sukanya Samriddhi Yojana for higher education or the marriage of the girl child.

Benefits-

Final Words
Choosing the right saving plan can make or break your financial goals. You should be careful in selecting the right plan based on the benefits of savings plan. A plan which might be the best saving plan in India might work for someone but may not necessarily be beneficial for you.

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