Consistent savings are your foundation for a wealthy and prosperous future. With a good savings plan oriented towards your life goals, you can achieve all your financial aspirations by investing your capital in the right place. However, when it comes to savings and investments, it’s always said that you should have a sound knowledge of the processes to be able to bear fruitful returns. In case you’ve never been into investing, need not worry because this article will guide you thoroughly.
Moreover, while there are several investment opportunities available in India to grow your funds, savings plans are the ones that prove to be less risky and more fruitful, considering that you’re looking for a long-term savings opportunity.
To purchase a savings scheme in India that provides you good returns, you need to know about the perquisites required to be made beforehand. With that said, let us take a look at the various things you need to know to purchase a savings plan that helps you achieve your future financial goals
Table of Contents
1. Tax-Saving Features
While considering an investment plan for saving money in the long term, you need to know about the tax-saving status of your preferred plan, as liabilities involved with taxation can consume a major proportion of your invested credit.
The preferred tax-saving status of your preferred savings plan should be either tax-free maturity value or tax-exempted investments. Fortunately, the majority of the savings policies are eligible for tax deduction under section 80C of the Indian Income Tax Act.
According to it, you can enjoy a deduction of up to Rs. 1.5 Lakhs with various savings policies available in India. Therefore, make sure you know about the tax status of your preferred plan to be able to purchase a policy that provides good returns.
2. Terms of Investment
When you save money using a savings scheme, it is suggested to invest for short-term periods by aiming for your goals one by one. To make this possible, you need to know about the investment terms of your desired savings plan to purchase one that offers good flexibility.
Talking about the flexibility of investment, your preferred plan should allow you to choose from various investment modes such as monthly, annually, and quarterly, and also provide you with various options for the investment period to hold it longer.
All you need to do is make sure that the investment terms provided in your chosen plan resonate with your income frequency and you’ll be good to go. So make sure that you research this to purchase a savings plan with promising returns.
3. Plan Availability
An ideal investment plan should be easily available and offer the convenience of purchase. The last thing you’d want to happen is you having to pay a visit to a specific branch of your preferred insurance company to be able to invest in a savings plan.
As nearly all the necessities are getting online, your desired savings scheme should also be available on the internet. Moreover, even after confirming the online availability of your desired plan, you need to determine various other things to make your purchase informed.
Firstly, you need to make sure that you can deposit, withdraw, and manage your funds remotely. Moreover, the particular savings plan provider should also offer reliable customer service to clarify your doubts and requests.
Furthermore, you should also be able to assess all the details related to the plan online. In some cases, you can also choose the plan to be automated through auto-debit of your premium payments, which makes sure you never miss any premiums.
4. Types of Guaranteed Returns
For long-term investments in a savings plan, you should aim to make the most out of the flexibility offered by equity-linked returns. On the other hand, if you cannot afford to take a higher risk, you can look for guaranteed returns instead.
There are various good savings policies available in the market that promise you the payment of base sum upon the selection of guaranteed return benefit with the plan. Depending on your preferred tenure, your regular investment amount will be determined by the insurer.
Moreover, you should also consider checking for the additional benefits and bonuses offered by your preferred plan. This allows you to gain additional returns and accumulate a higher amount for your future. So keep this in mind to buy a savings plan with a greater return on investments.
5. Benefits for Life-Goal Protection
There are several reasons why an individual invests in a savings plan, including financial liabilities like children’s education. However, with a bare guarantee of returns, you cannot sit back and relax considering that your aspiration will be achieved.
Before purchasing a savings plan, you need to make sure that it offers a guarantee for your preferred goal as well. A lot of life insurance providers offer savings policies with financial goal safety. When you include this benefit in your plan, the insurer is liable to pay the due premiums in the event of your death.
Moreover, even after paying the death benefit to your family; the policy will remain active and once the plan matures, your selected nominee will receive the assured returns. Therefore, your financial goal will be destined to fulfill no matter what.
6. The Takeaway
When it comes to making financial investments, a better understanding of the requirements and features of your preferred investment plans helps you gain peace of mind by ensuring that your capital is invested in the right place.
A savings plan allows you to accumulate a corpus of capital for your future goals. It helps you make consistent savings while aiming to grow your capital through investments. These plans are ideal for wealth generation as well.
While purchasing a saving scheme in India, you should surely keep the above considerations in mind to purchase a plan with the most appealing benefits for you. Additionally, make sure you verify the credibility of the company before investing as well.