Saving schemes play vital role in financial freedom, managing trendy and stylish life style, comfortable life and other basic needs easily. These policies will help to fulfill all needs and path chosen by the individual to live their life. As we understand the importance of saving and want to save for any future emergency or to fulfill any specific dream. To get every desired response and result these saving policies makes financial management quite easy and comfortable. These policies not only offer attractive interest rate and insurance facilities and make investors happy by returning them maximum amount as per pre investment commitment. To makes services much smoother respective company offers anytime support for all policy buyers.
Saving is natural Indian tradition that every one learn from initial stage of their life. It is quite good to know about saving and its important to make yourself able to deal with any odd condition without any difficulty. One of the easiest ways to save amount is your saving account where you receive your salary.
1. Easy Registration: Clearly defined rules and policies and the Indian Governments support ensure that these saving schemes are easy to buy for and safe for investment point of view. These policies need least documentation.
2. Easily Available: With the collaboration from various private and public sectors bank government of India offers several saving and investment policies to help people in their saving that will make their life much better and reputed.
3. Plans as per Duration: if someone is looking for safe and bright future then they should buy long term saving and investment plans. Long term plans are useful in medical emergency, retirement, any family function like wedding of any member, sudden requirement, long vacation or family trip or any other specific needs.
4. Availability of Various Products: In India there are several investment plans offered by several authorize agency as per capability of investors. Some popular plans that people can buy are Sukanya Samriddhi Yojana (exclusively for the girl child), Public Provident Fund (employed- retirement fund), Kissan Vikas Patra (Agriculturists), Employee Provident Fund and many more for different purpose.
a. National Saving Scheme (NSS)
b. National Saving Certificate (NSC)
1. The tenure of an NSS portfolio is four years.
2. Income tax exemption on principal amount as well as earned interest upto Rs.9,000.
3. Impressive interest rate of 9% per annum.
4. Cannot be pledged as security when applying for any bank loan.
5. Interest compounded annually.
1. Can be used as collateral when applying for a bank loan.
2. No maximum limit for investment with 0% tax deduction at source.
3. The tenure of an NSC portfolio is 5 and 10 years for the NSC VIII Issue and NSC IX Issue respectively.
4. Impressive interest rate at 8.80% (NSC-IX issue) and 8.50% (NSC-VIII issue).
5. Interest compounded on a half-yearly basis.
6. The interest accumulated annually is reinvested in line with the provisions of Section 80C of IT Act.
7. Tax savings per 80C of Income Tax Act for investments in excess of Rs.1,00,000 per annum.
8. These certificates can be transferred from person to another once through the lifetime of the certificate.
9. Very attractive returns, a nominal investment of Rs.100 will yield Rs.234.35 in 10 years.
PPF policy offers plenty of offers and exclusive benefits for PPF users and its benefits make this best in this category. In 1968, Finance ministry of India along with national saving scheme brings this special saving facility.
1. PPF accounts offers tax saving facility under Sec. 80C of the IT Act.
2. Interest rate of 8.70% p.a is compounded annually.
3. Applicant can avail loan with the PPF account as collateral from the 3rd financial year.
4. Minimum yearly investment limit is Rs.500 to a maximum of Rs.1, 50,000.
5. PPF accounts can be moved from one bank/post-office to another.
6. The maturity period of a PPF account is 15 years. However, this can be extended for upto 5 additional years.
7. Accumulated interest is completely tax free.
8. Joint accounts are not possible with this facility.
9. PPF accounts cannot be closed before the maturity period.
10. Lump sum payments facility.
11. Twelve deposits can be made in a financial year maximum.
Postal system of our country in one of the initial and secured platform that offers various saving plans and policies for all users. Postal system play vital role in systematic finance management and offers attractive interest rate. These policies are popular among urban, semi urban and rural areas persons, one of the major reasons behind this credibility is post office is central government wing and fully authentic organization. Apart from above describe facilities claim settlement is quite easy and quick. Popular saving related policies offered by post office are:
1. Sukanya Samriddhi Account.
2. Post Office Savings Account.
3. Public Provident Fund Account for 15 Years.
4. Kisan Vikas Patra (KVP)
5. Post Office Recurring Deposit Account for 5 Years.
6. National Savings Certificates (NSC)- 5 Years NSC (VIII Issue) and 10 Years NSC (IX Issue)
7. Time Deposit Account by Post Office.
8. Saving Scheme for Senior Citizens.
9. Post Office Monthly Income Account Scheme.
Kisan vikas patra was initially launched by the government of India in 1988 to allow rural areas persons to invest their money in best policy that will offer them maximum benefits and rewards. It was one of the most successful policies that were one of the best investment facilities offering policy introduced by Indian postal department. Due to some financial trap finance ministry and government of India terminate this policy. In 2014, government brings back this policy along with maximum security measures. Main facility offered by kisan vikas patra (KVP):
1. One to other person or post office transfer facility.
2. Facility to double amount in 100 months or eight years and four months.
3. Available in all main or regional post offices in across India.
4. Individual may buy KVP of amount 1000, 5000, 10,000 and 50,000 respectively.
5. There is no maximum transaction limit at the same time lowest bond limit is Rs. 1000.
6. These bonds can be prematurely enchased after two and half years from the point of issue.
Sukanya Samriddhi Yojana (SSY) policy proposed by the finance ministry of Indian government to promote girl child and their education. This is one of the most significant saving policies that offer higher interest rate too that makes its even more popular. This policy was launched by honorable prime minister of India, Mr. Narendra Modi, soon after its inauguration this saving scheme emerge as most prominent saving scheme that will handle all expanses of girl child. Following feature offered by this policy is:
1. Highest interest rate in this category, up to 9.2%.
2. Active saving account is mandatory before applying for this policy.
3. Account can be opened at any authorize public or private sector bank.
4. Applicant must deposit 1000 as opening amount in SSY account.
5. Maximum amount allowed to deposit under this policy is 1, 50,000 and lowest limit is 1000.
6. Account transfer facility in across India.
7. Maturity duration for this policy is 21 years whereas tenure to pay premiums is 14 years.
This policy is dedicated to all senior citizen of our county that will allow them to invest and save their amount as per their income. Applicant minimum age must be 60 years and in case of VRS taken by someone then age must be between 55-60 years. Facilities offered by this policy are outlined below:
1. As per income tax act 1961 section 80C allow tax saving facility for policy holders.
2. Interest rate of 9.3% p.a, payable on any of the following dates in a year- 31st March, 30th June, 30th Sept and 31st December.
3. SCSS portfolio tenure is five years.
4. Facility to transfer account from one to other bank as per applicants need.
5. Deposit facility is available in single account and once in lifetime. Lowest deposit limit is 1000 and maximum limit is 15 lakhs.
6. Three years tenure can be extended after maturity of policy.
7. Applicant can close this account permanently whenever they want to close.
8. If income from interest rate crosses the limit of 10,000 then TDS will be deducted.
To promote slightly weak section to offer them maximum facility and scheme launched by the government this policy came into existence. Policy is named after one of the renowned and respected prime minister Mr. Atal Bihari Vajpayee as people know him for well wisher of every section of society and person who always give his best to bring them in modern life style and offer them quality education. This policy is dedicated to person who works in any other profession and not associated with any government approved agency and pension plan. Under this scheme, individual can deposit amount as per their income and saving. Following facility will be available under this policy:
1.Applicant age must be between 18-40 years and must be Indian origin.
2. Active saving account is mandatory for applicants.
3. Minimum tenure to pay premium is 20 years.
4. Pension amount rely on premium tenure. To get higher return, you need to pay higher premium.
5. No other policy or similar scheme purchased by the policy holders.
Employee Provident Fund is facility offered by the Employees' Provident Fund Organization (EPFO), that offers facility to give some specific amount that will offers exclusive financial benefits in their future in case of emergency financial needs. As per policy, employee and employer need to pay minimum 12% amount of their salary to earn some specific benefits as per need. People must utilize this massive financial planner service. When it comes to saving policy offered by the government then EPF is most beneficial and broad financial service and enjoy financial freedom.
Government decides the policy related to this scheme as interest rate too, as per amount deduction. Generally interest rates rely between 8-12%. Amount earned from interest will be credited in account of respective person bank account on 1st April every year. To bring transparency in transaction agency offers reports of annual transaction made by the individual from that account. Users can also access information via official portal of EPFO to know about latest information released by the institution.
As term voluntary refers to act or task that someone want to do freely and in their own style. Concept of Voluntary Provident Fund (VPF) is inspired from this word. As per policy of this policy employee can transfer their entire salary along with other allowances into their EPFO account, rather than investing basic 12% of their salary. VPF offers attractive interest rate of 8.75% in last financial year. Investor must remember that impact of ups and downs in single found will affect other provident fund.
To make after retirement life of their employee government offers saving scheme known as national pension system. These policies handle tough position and bring capabilities easily. If someone is about to retire and have limited income sources then people of this category must opt this policy. Investors will receive one time payment facility and easy settlement process.
Under this scheme, government deposit amount that policy buyers, central or state government employee invest this policy not only will double up the insurance amount at the same it will offer maximum financial luxury in opposite time. This is of the long term investment policy for all state and central government employees.