savings

Saving’s Schemes Easy to Understand for Everyone

Saving’s Schemes Easy to Understand for Everyone

There are many saving schemes and tips that help every individual in the selection of the perfect scheme. These are also investments for beginners *-*

*SCSS Scheme

The Senior Citizen Savings Scheme (SCSS) is usually for senior citizens living in India. An individual who selects the SCSS scheme gains high security and safety, as well as tax savings benefits. It is a government-based scheme in which you can invest a huge amount of income individually or jointly. It gives you regular access to income along with benefits. 

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Why should you invest in SCSS?

Here are some of the reasons that will let you know why you should invest in SCSS:

  • As this scheme is sponsored by the government so it is very reliable and safe to invest in. 
  • The people living in India can open their accounts in any permitted bank by a very simple process. 
  • You can transfer your account to any bank across India.
  • The SCSS scheme offers a great interest rate on deposits. 
  • 5-years holding of the account can be extended further to 3 years. 
  • High-yield savings scheme

It provides the service of cash balance as a vehicle of your cash. It gives you the facility to transfer cash to your bank account, also possible with ATMs. A high-yield saving scheme also gives you the benefit of a high rate of interest. 

*Who should and who shouldn’t invest money in a high yield saving account?

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Now is the best time to save money for any emergency. There are top five high-yield savings accounts that give 10 times more than the traditional savings accounts annually. 

A high yield account is better than the traditional account for those people who want it soon for their emergency funds. 

For having a drastic change in your earnings and smart saving tips refer to the blue colour link here.

If you have enough cash for emergency funds as well as to cover your expenses for at least three months, you shouldn’t invest it in a savings account. Rather than you would like to invest in a place where it grows better for more than 5-years. Before the pandemic, the market yielded 17% of the savings. Even investing money in the stock market always helps you to get a wealthy future. 

  • Equity Linked savings scheme (ELSS)

ELSS is a kind of mutual fund, and lock-in for 3 years-which is the shortest range of savings. The big benefit of investing in an Equity Linked saving scheme is that the tax is deductible. The rate of returns depends upon the performance of funds of ELSS. The minimum tenure of ELSS is 3 years. 

➡️ Benefits of investing in ELSS

The most important things to consider in a tax saving scheme are %age of returns. Lock-in period, and taxable feature of the scheme. Let’s point out one by one:

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1.# High return

As compared to all other tax saving schemes such as Public Provident Fund (PPF), National Saving Certificate (NSC), Fixed Deposit (FD), or the National Pension System (NPS), ELSS is considered the best as it offers a 15% to 18% of return over 5 years. 

2. # Taxation and huge profit

The profit earned in ELSS is also known as Capital gains. In one financial year, the investment made up to 1, 50,000 in ELSS under section 80C of the Tax Act. A tax of this capital gain acts partially e.g. there is a 10% tax on PRs. 1, 00,000 in a year. 

3.# Lock-in-period

It has the lowest lock-in period of 3 years while other tax-saving schemes have a policy of a minimum of five years. 

  • Post Office saving account

This scheme is for everyone, either an adult, a joint account, a guardian for a child, and also for children above 10 years. One person can open only a single account, similar to the guardian of a child. In the case of a joint account, if one partner is dead then the surviving partner will be the holder of the joint account. But, if the surviving partner had another account with his\her own name then the joint account will be closed. Once you open a joint or individual account, you cannot convert it to vice versa. 

  • Post Office Time Deposit Account

TD has four types of tenures that are, 1 year, 2 years, 3 years, and 5 years. Tax is also applicable annually for all types of TD. For a tenure of up to 5-year, the rate is 6.7% p.a. and for 3 years, the rate is 5.5%. 

*Why invest in Post Office Time Deposit Account?

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Invest in Post time deposit account.

Create a savings scheme portfolio for yourself and try to make an extra income source so that you never run out of money and increase your savings portfolio for a lavish lifestyle you always wanted.

Here are some important points and features to consider:

1. Lock-in period

Any individual who wants to deposit has many options to select the lock-in period of his\her own type such as for 1 year, 2 years, 3 years, or 5 years.

Once the term of the account is selected, it can be changed to another type by sampling an application to the post office.

2. Minimum Deposit

To open the amount only a small amount is required also there is no maximum deposit limit, so individuals can deposit the amount in patches.

You have options to deposit the initial amount in the form of a cheque or cash.

If you selected the cheque option, the day of encashment of the cheque is set to consider as the opening date of the account.

3. Tax benefits

The tax benefit is applicable for only those individuals who selected a 5-years tenure plan. Under section 80C, the depositors will have a chance to get an income exemption of a great amount.

4. Interest payment

In interest payment, the interest can be paid either in the form of a cheque or cash.

A payment higher than 267$ will be paid with a cheque. 

5. Premature withdrawal

POTD will not allow their visitors to withdraw the amount in the starting 6 months.

If the collection is prematurely withdrawn the post office time deposit rate amount between 6 months and 12 months, will be attached to the prescribed rate for the savings account. 

6. Interest post maturity

You can withdraw the amount after the maturity of the deposit account. In case, if an individual does not withdraw the amount, he will not be able to get extra interest. In the Post Office Time Deposit, a core banking solution is available to solve this issue.

It renews the account again to its position when it was selected originally. 

To learn more about the saving scheme techniques and create an effortless lifestyle without thinking about money again, please do refer to gain full insight into Saving schemes

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