SSY, NSC, EPF, PPF, ELSS: A take a look at 5 financial savings schemes for salaried people; take a look at every scheme’s options and advantages

Each particular person desires to save cash for retirement, emergencies, their kid’s training, and different functions, however typically will get confused about choosing the proper funding schemes. Nicely, there are various funding choices for them, however which one is appropriate is tough to determine. These schemes vary from conventional financial savings schemes to low-risk funding and market-linked merchandise. They’ll go for any as per their understanding or take a monetary advisor’s assist.

On this article, we are going to speak about 5 such schemes and their advantages. Have a look:

1. Worker Provident Fund (EPF)

Worker Provident Fund (EPF) is a long-term retirement financial savings scheme for workers the place each employers and workers contribute a hard and fast quantity each month. The Worker Pension Scheme (EPS) is part of the EPF that gives a month-to-month pension after retirement. In EPF, each the worker and the employer contribute 12 per cent of the worker’s primary wage, out of which 3.67 per cent goes to the EPF (for financial savings) and eight.33 per cent goes to the EPS (for the pension fund). Learn extra 

2. Public Provident Fund (PPF)

PPF comes with a 15-year lock-in interval and a 5-year extension possibility, but it surely is without doubt one of the most secure funding schemes. A person can deposit a minimal of Rs 500 and a most of Rs 1.5 lakh in a 12 months on this scheme. The rate of interest is revised yearly by the federal government and supplies assured and tax-free curiosity.

3. Nationwide Pension System (NPS)

A government-backed scheme in which you’ll accumulate a retirement corpus. The scheme is managed by the Pension Fund Regulatory and Growth Authority (PFRDA). In NPS, you may put money into a pension account all through your employment and may construct a tax-free retirement fund.

For a Tier-I account, you have to contribute a minimal of Rs 500 to open it and a minimal of Rs 1,000 per monetary 12 months to take care of it. For a Tier-II account, the minimal contribution to open is Rs 250, and there’s no minimal annual contribution, with contributions capable of be made at any time. Learn extra

4. Nationwide Financial savings Certificates (NSC)

It’s a low-risk fixed-income financial savings scheme in India. It comes with a five-year lock-in and stuck curiosity compounded yearly. The reinvested curiosity additionally qualifies for Part 80C deductions.

5. Sukanya Samriddhi Yojana (SSY)

SSY is a government-backed small financial savings scheme geared toward securing a lady baby’s future. It presents enticing returns with full tax advantages and a secure funding surroundings. The scheme at present presents 8.2% annual curiosity (July 2024 price), compounded yearly, making it one of many highest-yielding small financial savings choices in India. Learn extra