The need and requirement of money can arise anytime such as in emergency situations or for miscellaneous needs. Hence, it is important to plan your savings with caution so what when in need your account has a decent amount of money and doesn’t show a zero or less balance figure.
Recurring account is one in which monthly a fixed amount of money is deposited and kept aside. This cannot be taken out when needed. It is only given to the account holder after a fixed period of time or when the account is closed. Opening a recurring account is a good way of making some savings. Recurring accounts start with anything from 1000 INR and go can up to higher amounts. These can also be a saving option for women.
Public provident Fund
PPF or the public provident fund is a great way of saving money where one can be assured of getting high interest.
- Open for a period for 15 years, money deposited in this account cannot be debited before its completion.
- A disadvantage associated with this account is that only a fixed amount of money can be deposited for the entire year.
- Since the account offers quite high interest rates as compared to regular savings account, this can be a good start for beginners.
A fixed deposit or a ‘FD’ is one where a person can keep a fixed amount either with a public or a private sector bank for a definite time period and get high returns on the amount. Keep in mind that you will be getting the promised rate of interest only when the money deposited is taken back after said time.
Senior citizen saving schemes
The post office saving schemes offers a wide option for people of different ages. Particularly beneficial for senior citizens, post office offers high rate of interest on their savings or recurring account. Anyone who is above the age of 60 can enrol for these schemes.
Private and Public Banks
Senior citizen accounts with private or public sector banks are also equally beneficial. If you are above the age of 60, definitely ask for the senior citizens account, where you can get good returns on your saving.
What is the Monthly Income Scheme?
Again operated by the post office, the scheme has a maturity period of five years where the deposit starts from INR 1,500 and goes up to INR 4.5 lakhs. This scheme ensures a source of regular income for elder people and the rate of interest offered is also about 8%. The scheme does not offer any bonus on maturity.
Time Deposits are a Preferred Option
Time deposits are when a person can save money with option of 1, 2, 3 or even five years with high interest rates varying with the time period. The compound interest offered on the same is also 0.2% high than regular accounts. Time deposit scheme can definitely ensure saving some bucks which can be quite helpful anytime in the near future.
Author Bio: – I’m Christina a business managing student, my hobbies is writing on business & finance themes articles. I have writer article on finance various themes like apply now in Perth & you can find out more for Finance.