Best long term savings options in india
There are lots of small saving schemes available in India that helps tax savings too. Many of them provides you guaranteed returns, high interest rates, tax savings under various sections of Indian Income Tax Act and much more benefits. These small savings plans not only provide growth to your money but also provide you with financial security at various stages of your life. It depends on your needs what product suits you best.
You must go through the scheme documents before starting any investment scheme. Each financial plan has its own advantages and shortfalls, only a good research will save your hard earn money. For an example if you are looking for short term savings then you can invest your money in post officesgovernment bonds, mutual funds, and if you are concentrated to long term savings then public provident funds PPFlife insurancelong term bank deposits FDs, RDs can help you. When you want to invest your hard earned money for a best long term savings options in india period of time and get a regular income, Fixed Deposit Scheme is ideal.
Recurring Deposits Under a Recurring Bank Deposit Saving Scheme, investor invests a specific amount in a bank on a monthly basis for a fixed rate of return. The deposit has a fixed tenure, at the end of which you get your principal sum as well as the interest earned during that period.
These Bonds are instruments that are issued by the RBI. The interest is compounded half-yearly. Maturity period of RBI Bonds is five years, and interest received is tax-free in the hands of the investor. Post office saving schemes are know as best small saving schemes, as the post offices are spread all over the country they have trust and easy accessibility. Such premium can be paid towards health insurance of spouse, dependent parents as best long term savings options in india as dependent children.
Under this section, Interest on borrowed capital for the purpose of house purchase or construction is deductible from taxable income up to Rs. Initial points before starting a small savings scheme When you need returns? Under a Recurring Bank Deposit Saving Scheme, investor invests a specific amount in a bank on a monthly basis for a fixed rate of return.
Recurring Deposit provides you the element of compulsion to save at high rates of interest applicable to Term Deposits along-with liquidity to access that savings any time. These provide tax-saving benefits under Section 88 of the Income Tax Act,for the investor.
You can reduce your tax liability by upto Rs 16, per annum. Fixed deposits in companies that earn a fixed rate best long term savings options in india return over a period oil and gas stocks dubai jobs time are called Company Fixed Deposits.