Everyone understands the value of money. Money doesn’t come to us quickly; we have to work hard to earn every penny. However, money does not remain with us forever. We all need savings to secure our future which we cannot predict.
Savings can be in any form, Fixed Deposits online, Mutual Funds, Gold, and more. Irrespective of the types of assets we invest in, we should have adequate savings for the future.
If you are in search of investing for 2021, you have reached the right page. Read below to get familiar with the best saving schemes in India for the year 2021.
Mutual Funds
Mutual Funds have offered investors exceptional returns in the past. Very few people know the importance of saving through Mutual Funds.
Mutual funds have high risks, but the rewards can be phenomenal. When these funds are invested for the long-term, the returns can be higher. Under Mutual Funds, two of the significant investment options are Equity Funds and Debt Mutual Funds. Equity Funds are an investment in company shares that offer market-linked securities.
At the same time, Debt Mutual Funds invest in government bonds, commercial paper, and other market tools that provide fixed-interest securities.
Fixed Deposits
The most common form of investment in India are Fixed Deposits. Many people have fixed deposits in various financial institutions. The interest rates may vary across institutions. The final amount on the fixed deposits is more when the lock-in period of the sum amount is kept for a longer tenure. The Fixed Deposits interest can be cumulative or non-cumulative, and one can choose to avail the interest monthly, quarterly, half, or annually.
National Pension Scheme(NPS)
If you are looking for pension solutions, then invest in National Pension Scheme (NPS). It is the most reliable and best investment that the Government supports. Depending on the investor or the individual, NPS invests in government securities, bonds, and equity shares based on active or auto investment options. Under auto, the investor automatically invests in shares depending on the market rate and situation, while under active investment, the investor may invest depending on his choice. This scheme matures when the individual or investor turns 60 years of age.
Senior Citizen Saving Scheme
For a tax-free and risk-free investment, the Senior Citizen Saving Scheme is the best in India. Those above 60 can invest in this scheme as this is the perfect source of monthly income they can rely on after retirement. What makes the Senior Citizen Scheme best compared to other schemes in the market is its rate of returns, approximately 8% per annum. The Government of India has made the SCSS available in India post and national banks. Finding Cheap Business Insurance Rates
Post Office Monthly Scheme
It is a 5-year investment scheme backed by the Indian Government. The Post office Monthly scheme is also referred to as the recurring deposits scheme(RD), widely available in post offices across Indian states. It is a tax-free investment with a higher rate of interest compared to the banks.
Now that you read about the best saving schemes in India check the investment options that suit your financial portfolio before investing.
