What are the Top 5 Saving Plans in India?

Everyone wants to grow their wealth and capital to look after their and their family’s comfort. Therefore, in this day and era, it is very crucial to save your funds for meeting emergencies or to secure them for retirement.

Further, one of the smartest ways to amplify your capital and wealth is to invest the funds and savings in the right investment instrument. The same will able to cater to the day-to-day financial requirements.

Furthermore, there are certain savings schemes provided by the government, financial institutions, and banks to boost investors to invest more and get high returns. 

However, it is rightly stated that one must have complete knowledge of the investment option before making an investment in it. 

Through this blog, we aim to provide the top 5 saving plans in India that will assist everyone to save their funds for future financial requirements. 

Public Provident Fund

The concept of Public Provident Fund (PPF) was introduced by the National Savings Institute (NSI) in the year 1968. Being a government-backed savings investment scheme, it is one of the safest and the most accepted savings options in India. 

Further, the contribution made to the Public Provident Fund account is pertinent for tax deduction under the provisions of section 80C of the Income Tax Act.

The said scheme attracts a yearly income rate of 7.6 percent, which is compounded annually. Also, it shall be noted that a person can make a minimum contribution of Rs 500 and up to the maximum limit of Rs.1.5 lakhs in a financial year. 

Furthermore, the benefits offered by a Public Provident Fund are payable in the form of a lump sum or up to a total of 12 deposits per financial year. 

Another significance of a PPF account is that it provides flexibility in transferring the account from one bank or post-office to another. 

Sukanya Samridhi Yojana

Sukanya Samriddhi Yojana (SSY) was introduced by the Ministry of Finance. It is a savings scheme option, which is particularly designed to secure and safeguard the financial future of a girl child. Further, some of the salient characteristics and benefits offered by the Sukanya Samriddhi Yojana are as follows:

1. The Sukanya Samriddhi Yojana (SSY) provides the highest rate of annual interest of 8.1 percent on the principal amount as compared to any other savings scheme;
2. One can start a Sukanya Samridhi Yojana account easily at any post office or at any authorized bank in India;
3. A person can start an SSY account just by making the minimum investment of Rs 1000. Also, he/ she can invest up to the maximum of Rs 1.5 lakhs in a financial year;
4. The maturity period of the Sukanya Samridhi Yojana scheme is of 21 years, starting from the date of the issuance. Also, it shall be noted that the account holder can easily contribute to the account up to a total tenure of 14 years;
5. The Sukanya Samridhi Yojna account can easily be transferred from one bank or post office to another within India;

Atal Pension Yojna

One of the best savings plans in India is the Atal Pension Yojna. It is a government initiated savings scheme option and is specifically designed for the well-being and welfare of the weaker and backward part of the society. 

Further, it shall be noted that this scheme is pertinent for every individual who is working in the unorganized sectors and who needs financial support and backing from the government sponsored welfare programs. 

Furthermore, Atal Pension Yojana offers a lucrative pension plan for the post retirement years of individuals. Under this, the individuals require to pay a very minimal premium to avail of the benefits of this pension scheme.  

Also, some of the salient characteristics and benefits provided by the Atal Pension Yojana Scheme are as follows:

1. It is a robust and virtuous retirement plan that offers the benefits of regular income to the backward and weaker section of the society, and to those people who are working in the less developed or unorganized sector;
2. Individuals falling between the age criteria of 18 years to 40 years are qualified to apply for the same;
3. The rate of premium for the Atal Pension scheme is very minimal and has to be paid for a minimum period of 20 years. However, it shall be noted that the higher the premium amount, the higher pension coverage will be provided to the individuals;
4. It is compulsory for every applicant to have an active savings bank account;

Employee Provident Fund (EPF)

The concept of Employee Provident Fund (EPF) was introduced by the Employee Provident Fund Organization (EPFO). It is again a government initiated savings scheme, in which it is compulsory for the salaried individuals to pay an equal financial contribution in the Provident Fund (PF) account. 

Further, an EPF fund assists individuals to plan out their retirement plans in advance so that they can easily spend their golden period of retirement in a stress freeway manner. 

Also, it shall be noted that the Employee Provident Fund scheme helps the individual to satisfy his/ her financial objective of life and assist them to deal with any kind of emergencies. 

Furthermore, some of the salient characteristics of the EPF Scheme are as follows:

1. In this savings scheme option, both the employer and employees make an equal amount of contribution of 12 percent of the employees’ monthly salary towards the Employee Provident Fund account per month;
2. The annual rate of interest on the contribution made to the EPF scheme is 8 percent to 12 percent;
3. The interest accrued is credited to the respective account of the employees on the 1st April of each financial year;

Pradhan Mantri Jan Dhan Yojna

The last but again one of the best savings plans of India named the Pradhan Mantri Jan Dhan Yojna was launched by the Indian government in the year 2014.

Further, this savings plan scheme is explicitly designed for individuals who are not having a bank account in India. 

Furthermore, Pradhan Mantri Jan Dhan Yojana provides cost-effective solutions pertaining to accessing financial services, such as remittance, pension, banking, insurance, etc. 

Some of the salient features and privileges offered by the Pradhan mantra Jan Dhan Yojana are as follows:

1. The account holder is eligible for a life cover of Rs 30000, together with an accidental insurance cover of Rs 1 lakh in case of any contingency;
2. Provides an overdraft facility of up to Rs 5000 to the account holder, however, the same is valid to not more than one account per person;
3. The applicant can easily avail of seamless access to the different pension and insurance policies;
4. The account holders can easily avail of interest on their deposits;
5. The beneficiary of the Pradhan Mantri Jan Dhan Yojana scheme is qualified for direct benefit transfer;

Conclusion

In a nutshell, a regular savings plan assists people to be financially prepared for any kind of eventualities and contingencies. Moreover, the same also allows a person to satisfy their both long-term and short-term financial needs of life. 

Further, by keeping a controlled approach towards the savings one can easily create a financial cushion for his/ her future and live the golden days of the retirement in a stress freeway manner.

You might also like: What are the Top 5 Saving Plans in India?