The habit of savings that is instilled in you in childhood comes a long way with your Financial Goals. During your childhood, it was the piggy bank, and as you grow up, there are saving plans that help you accumulate wealth and use it wisely when you require it. With the best saving plan, you may not only cover your retirement years and necessary medical expenses but also ensure that your loved ones will inherit a sizable sum of money when you pass away. Let us see the types of saving plans available in India and which one might be right for you accordingly.
Types of saving plans
Here is a list of different saving plans available in India-
- Unit-linked Insurance Plan— The best saving plan offering you the option of investment along with savings for the future.
- Money back plan — Best saving plan if you need money for both short and long-term goals.
- Endowment plan — A saving plan offering various bonuses on policy maturity, insurance, and investment options.
- National savings certificate plan — The fixed income plan started by the government for minimal-earning people.
- Public provident fund — Again, a plan offered by the government for long-term savings and returns.
Tips to choose the right saving plan
Now that you are aware of the different saving plans, let us read about how to choose the best one for yourself.
- The amount you can save — Before opting for a saving plan, ensure that you are aware of the amount you can keep aside for the same each month. For example, if you are getting a salary of 30,000 and your monthly expense is 25,000, you can save up to 5000 each month. Various saving plans help you invest as little as ₹500 each month to provide a premium of 1,50,000 for savings. According to the amount you can save, pick the ideal saving plan for yourself.
- Your goal for saving —Some of you want to save just to secure your life after retirement. For others, it might be as a life insurance policy, or there are a few people who save for their children’s education. Summarising it, it is important that you are aware of your long and short-term goals while investing in a savings plan.
- The duration of your saving plan — Different saving plans in our country have distinct duration. You can even customize your plan as per the terms you require for your investments. Some of the saving plans provide you with 15 years of policy while others can be as short as 5-year plans, and there are also some investment policies that provide you as long as 60 years of time for savings.
Choose with flexibility
When looking for the best saving plan in India, opting for the one that offers you flexibility is a great choice. With this option, you can switch between the saving plans you require according to different needs and hence save better and for a longer time.