Save up so it saves you in distressing times. Read more!

Managing funds often get difficult since many individuals do not understand how to manage money. Most people do not have enough money to live a pleasant life. All of this has been considered by the Indian government, which has developed the best monthly saving schemes. 

These plans assist people in saving a portion of their earnings for future usage. Some government schemes aid people in order to make their lives simpler.

The Government of India will continue to pay employer and employee contributions to workers’ EPF accounts for additional three months, from June to August 2020. The incentive is available to businesses with up to 100 workers, with 90% of those employees earning less than Rs 15,000 a month. Non-government organizations’ EPF contributions decreased from 12% to 10%.

What are monthly saving schemes?

Saving plans are tools that assist people in reaching their financial objectives over a certain period of time. The Government of India, public/private sector banks, and financial institutions launch these initiatives. 

The interest rate for these schemes is set by the government or banks and is adjusted on a regular basis. You may utilize the money you save via these schemes for emergencies, retirement, further education, children’s education, marriage, job loss, debt repayment, and other purposes.

Why is it important to invest in the best monthly saving schemes?

Saving plans are important for individuals in a country and, consequently, for an economy for the following reasons:

1. Safety

Saving your hard-earned money in the best monthly saving scheme will help you secure it for future needs. Many insurance companies in India suggest that keeping liquid money on hand may not be safe.

2. Retirement Funds

Depositing money in long-term saving schemes on a regular basis can help you build a retirement corpus. When you start saving at a young age, you will be rewarded with a large corpus that you can use after retirement to live a comfortable life.

3. Long-Term Benefits

Because most schemes use compound interest concepts to calculate interest, long-term investments can yield incredible returns.

These schemes have a minimum lock-in period of five years and a maximum lock-in period of 60 years. Compounding returns, combined with long-term savings, will earn you interest on interest, resulting in a large sum at maturity.

4. Tax Savings

Insurance companies in India offer many saving plans that provide one or more types of tax benefits, such as tax deductions, exemptions, or both. Section 80C of the Income Tax Act allows for a tax deduction on investments of up to Rs.1.5 lakh in certain schemes. Another type of scheme exempts the investment, interest earned, and maturity amount.

5. Avoid Unwanted Expenses

When you have all of your money at your disposal, you may wind up spending it on unnecessary stuff. Investing the excess that remains after meeting the essential costs in the best monthly saving scheme, on the other hand, will assist prevent spending on unneeded products and services.

Different types of monthly saving schemes available in India

When searching for the best monthly saving scheme in India, you have a lot of possibilities. Many are sponsored by the government, while others are regulated by the RBI and SEBI. In addition, a few of these schemes provide income tax exemptions/deductions. Here is a list of some of the best monthly saving schemes:

1. Equity-Linked Savings Scheme (ELSS)

ELSS, commonly known as tax-advantaged savings funds, is a kind of mutual fund. Section 80C allows for tax deductions of up to Rs.1.5 lakh on ELSS investments. The investment is subject to a three-year lock-in term. The rewards on investment redemption are taxed as capital gains. The profits are exempt up to Rs.1 lakh. They are taxed at 10% over this amount.

2. Fixed Deposits (FD)

Fixed deposit accounts are regarded as the most convenient and secure investment option available. You deposit any amount convenient for you for a specified period of time, which earns interest at the rate in effect on the date of deposit. The scheme provides flexibility in terms of tenure and interest payout frequency. The interest rate on an FD account is significantly higher than the interest rate on a bank savings account.

3. Public Provident Funds (PPF)

PPF is a government-sponsored long-term tax-free saving plan. The money you deposit in your PPF account is tax-deductible under Section 80C of the Income Tax Act. The interest on such savings is also tax-free. Open a PPF account at your local bank or post office.

The money will be locked in for 15 years and can be extended in five-year increments after the lock-in period ends. Returns will be calculated using compound interest at a rate of 7.1% per year.

4. National Savings Certificate (NSC)

Another government-backed saving scheme, the National Savings Certificate, offers guaranteed returns as well as a tax-saving option. You can purchase an NSC at your local post office. The scheme has a five-year lock-in period. The government reviews the scheme’s interest rate once a quarter and makes a decision.

Wrapping It Up

A savings plan protects a person against unanticipated personal and medical crises. It also helps people achieve their personal goals, such as continuing their education, sending their children to college, and marrying. The best monthly saving scheme will also provide an extra source of income.

A person’s financial discipline will improve if they develop the practice of saving on a regular basis. The benefit is that these plans are government-backed, resulting in total safety and security for the invested funds. These techniques provide high profits while posing little risk.

Canara HSBC Life Insurance iSelect Guaranteed Future Plan is an excellent way to protect your loved ones and boost your maturity benefit. With the Non-Linked Non-Participating Individual Savings Life Insurance Plan, you can be sure that your family will be taken care of in the event of your death. 

Plus, the Gift of Guarantee with Guaranteed Maturity Benefit guarantees that your loved ones will be able to take advantage of your policy as soon as it becomes available. And for added peace of mind, the Payor Premium Protection Cover will secure your family’s future in the event of financial hardship. 

So if you’re looking for a life insurance plan that will protect your loved ones and provide them with a boost in their maturity benefit, look no further than Canara HSBC iSelect Guaranteed Future Plan.
Canara HSBC Life Insurance is undoubtedly one of the best insurance companies in India.