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What are the Benefits of Saving Schemes And How to Choose The Best One?
Benefits of Saving Schemes in India
Offers substantial funds
You can save a substantial amount for ensuring the availability of funds during emergencies. This is beneficial as your family can stay financially protected in case of a crisis.
Offers flexibility of customisation
You can easily customise a plan as per your choice. This makes sure that you will be able to get the maximum benefit from the savings scheme where you choose to deposit your money.
Promotes the habit of savings
Once you start noticing that you are receiving sumptuous returns from your investment, it will encourage you to save more. This way, you can develop a healthy habit of savings, minimising the wastage of money.
Allow savings on taxes
Several schemes allow deductions on taxes. This is advantageous as you can save a sumptuous amount that you can easily use for investment purposes leading to wealth creation.
Accelerate the achievement of financial goals
Once you start saving, within a short period of time you will have enough money. You can easily use these funds to achieve your financial goals earlier.
Helps in retirement planning
You can easily accumulate enough money by starting to save from an early age. This helps you to stay financially independent and fulfil all your retirement goals.
Keeps your money safe
On depositing your money in these savings schemes, you can be sure of its safety. Furthermore, you can ensure that there is no wastage of money and also it is protected from theft.
Steps to Choose the Best Saving Scheme
Step 1: Finalise Your Financial Goals
The first and foremost step that you can take is finalising the financial goals in both the short- and long-term. This is essential as you can get a clear picture of your objectives and what you need to achieve them. This will essentially help to select the best scheme.Step 2: Shortlist the Savings Schemes
On determining your financial goals, you can proceed with the shortlisting of savings schemes, helping you achieve your goals faster. You can easily compare among the schemes available to select the right one as per your convenience.Step 3: Determine Your Risk Appetite
The next step that you can take is to calculate the risks associated with the shortlisted savings schemes. Once done, you will understand your risk appetite and accordingly select the best scheme to achieve your goals.Step 4: Check the Liquidity Available
You should determine if the schemes allow withdrawal of money before its maturity in case of urgent need of funds. This will help you to understand if you can rely on your savings during contingencies.Step 5: Go Through the Investment Options
Finally, you should also check out the investment options associated with each of the schemes. This will ensure that apart from savings, it can also help you in wealth creation which can compound your finances.
These steps can effectively help you in selecting the appropriate savings option. You can check out some of the savings schemes available that you can consider when reaching for your financial goal.
However, you should remember to check the eligibility criteria for each of these schemes to ensure that you can actually use them.
A savings scheme is a long-term financial plan which, if chosen rightly, can ensure a healthy financial life and fulfilment of monetary goals at an accelerated speed. Along with this, you can also reap various benefits of saving schemes by selecting the most appropriate one.
FAQs about Benefits of Saving Schemes
What is the duration of fixed deposit schemes?
Do you have to pay taxes on your returns from savings schemes?
Which savings schemes give the best returns?
Other Important Articles Related to Saving Schemes
Important Articles About Financial Planing
Disclaimer
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.
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