Best Saving Plans in India 2022-23

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Here’s a list of some of the best financial plans to invest in India this year to build your savings corpus.

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Saving money is a definite way of building wealth for the future. It is obviously wise not to spend up your entire earnings and keep aside a small portion of it regularly so that it can be used later on in life when needed. But how to save money? Is it enough to just cut down on our spending so that we can save more? Sadly, no. One of the most definitive ways to save up and generate wealth for the future is to invest in the best saving plan in the country.

Here we list out some of the best money saving plans in India which you can consider for investment in 2022-23. But first let’s understand what a saving plan is and why it’s important for financial independence.

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What is a Savings Plan?

As is evident in its name, a savings plan is a financial scheme which encourages people to save money by investing a certain amount in the plan and receiving regular returns by way of interest. This helps the investor generate wealth for the future.

In addition, saving plans are an insurance product, meaning that they are designed to also provide financial protection for the future besides assisting in wealth generation.

4 Benefits Offered by Saving Plans

Investing in a savings plan is one of the best decisions you can make for your future and that of your family. Here’s why it is important to buy a savings scheme:

  1. It is one of the fastest ways to build wealth. All of us have certain financial goals for the future. The only way to achieve them is by building an adequate corpus, which will be able to take care of all your financial needs even after you retire. And the most certain way to build that corpus is by investing in a savings plan, since the returns would be faster than the time it would take for you to save a considerable amount of money for the future by reducing expenses.
  2. Saving plans help secure your post-retirement stage of life. When you wouldn’t be earning anymore, you’d still need money to sustain a decent lifestyle for you and your spouse. This is when you’d be able to reap the benefits of the decision you made years ago by investing in a savings plan. The maturity received from the plan can serve as a sizable retirement fund for all your financial needs in the golden age of your life.
  3.  Investing in a savings plan is also a safer bet than choosing to invest in any other financial product. This is because savings plans are backed by the Indian government and therefore promise regular steady returns on investment with absolutely no risk for the investor.
  4. Saving plans are tax-saving too! As per Section 80C of the Income Tax Act, investing in the best saving plan can fetch you a tax deduction of up to Rs. 1.5 lakh.

Best Money Savings Plans with High Returns in India, 2022-23

Now that you’re ready to invest in a savings plan, let’s look at some of the best options to go for in 2022-23:

  1. Senior Citizen Savings Scheme: Backed by a high rate of interest and low risk, the Senior Citizen Savings Scheme is currently the best saving plan in India with higher returns. The eligibility age for entry into the plan is 60 years or 55+ years in case the person has opted for voluntary retirement or Superannuation.
  2. Public Provident Fund (PPF): Another government-backed scheme with a low minimum deposit (only Rs. 500). It is also currently the best tax-saving investment plan in India, since the interest and maturity benefit received from the plan is eligible for tax exemption under the Income Tax Act, Section 10.
  3. Post Office Monthly Income Scheme: This is by far the easiest and also the best saving plan in post office, offering assured returns to investors with no risk element involved. All you need to do is create an account in a post office near you and start investing amounts as low as Rs. 1000 by way of monthly savings. The best part about this scheme is that interest is payable every month.
  4. Recurring Deposit: If you’re looking to invest for a longer period of time, then Recurring Deposit or RD is the best saving plan for long term, encouraging investors to generate large corpus over a long tenure. The best part about the plan that the investor also has the choice to select a tenure for investment best suited to their convenience and financial needs. Also, unlike other saving plans, the rate of interest under this scheme is not fixed but differs from one bank to another.
  5. Fixed Maturity Plans (FMP): If short-term investment returns is what you’re after, then we highly recommend FMPs, with a minimum 3-year lock-in period. This means that the maturity benefit under the plan can be received in as early as 3 years under this best saving plan for short term. FMPs operate quite similar to bank Fixed Deposits or FDs, however, the returns are better in FMPs and tax deductions are impressive too.
  6. Sukanya Samriddhi Yojana (SSY): Currently the best best saving plan for girl child in India, the SSY is one of the best gifts that you can give to your daughter. Just open an account in their name at a bank or a post office near you and start saving some amount regularly for a secure future of your daughter. Upon maturity of the plan at 21 years, your daughter would have sufficient funds to support her educational, career, and marriage dreams.

Read More: Best Investment Options For Middle Class – Low-Risk and High-Risk Investments 2022

In a Nutshell

Savings plans are the best way to not just take care of your financial needs now but also create enough corpus for the future to secure your family’s financial goals. There are various plans that you can start investing in, both for adults and children. We have listed out a few here in this blog to help you make an informed decision. Remember, creating wealth does not mean reducing spends; instead, it means saving wisely so that you have enough to last in the future. Saving plans help you with just that.

Also Read: Best one-time investment plans 2023 in India for 1 year and 5 years – Benefits and things to consider | Form 12BB – What is Form 12BB Means? How to fill form 12BB – Investment Declaration and Tax saving

 

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

 

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Oct 07, 2022
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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