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It is crucial to understand the benefits of different saving plans in India. Read this to know about the best saving plans and its benefitsYou can become rich too with this investmentMost people dream of having a financially free life--a life where they can enjoy their time without worrying about anything.But it is a distant dream for many as they are not aware of the path to choose.There is no shortage of saving plans. Investing in good programs is different from narrowing down and choosing the suitable strategy for you. Hence it is crucial to understand the available in India.In this article, we will be discussing various saving plans in India.Saving Plans in IndiaIndia has a lot of varieties when it comes to saving plans. To choose the best saving plan in India, you will need to understand the benefits of the savings plan.The following are some of the best savings plans to invest in 2022.1. NationalSavings CertificateGovt of India issues NSC. They are suitable for people in business and salaried employees. It is one of the most reliable savings plans in India. There are two types of NSC -- NSC VIII issue- NSC IX issue.The rate of interest of NSC is quite attractive. They provide returns better than fixed deposits. The maximum investment duration is five years for the VIII issue and ten years for the IX issue.Every year, Govt of India sets the rate of return, and the current recovery is 8.5 per cent and 8.8 per cent for the VIII and IX issues.Benefits-- Investment up to 1 lac becomes eligible for a tax rebate.- TDS does not apply for NSC.2. Life InsuranceLife is uncertain, and we never know what event can occur. The recent pandemic has proved why it is essential to have insurance. Life insurance cum savings plan is the Plans like Canara HSBC OBC Life Insurance's Guaranteed Income4Life plan provides- Financial stability for your family- Steady income- Other tax benefits.These plans are highly flexible wrt premium payment and sum assured.Benefits-- Protection to your family from uncertain events- Tax benefits under sections 80C and 80D of the income tax act.- Based on the maturity milestone, a sum is paid out as income.- Loyalty benefits that can increase your sum assured by 900 per cent.3. Recurring DepositsRDs are an enhanced version of Fixed Deposit. RDs make the best instrument for emergency funds and short-term goals. It is the best plan for having high liquidity.Benefits-- RDs usually provide high-interest rates ranging from 6.75 per cent to 7.25 per cent.- There are no penalties when you miss paying your contribution. Hence a lot flexible.- You can start as low as 2000 every month, which means you can plan for the event with a minor financial goal.- You can start an RD for as less as six months.4. Mutual FundsIt is one of the most widely used instruments for savings. Mutual funds are a type of managed investment scheme. Investors use them to pool their money together and grow wealth through investments. Mutual funds are open-ended, meaning they can buy and sell securities.The capital gain on a mutual fund scheme depends on the performance of the securities it decides to buy. The market condition is also a factor that determines the value of the particular security purchased.Benefits-- Professional management- Low risk, diversification- Liquidity- Economies of scale5. Public Provident Fund (PPF)is a retirement savings scheme introduced by the government of India in 1968. The plan allows you to earn interest on your investments, which is not taxable under income tax. You can open a PPF account and deposit money any time during the year.The interest earned from this account can be claimed as part of your tax rebate under section 80C deductions. This means that your taxable income will be reduced by the amount deposited into this account.Benefits-- It falls under exempt-exmept-exempt category- You can claim the investment for tax benefit under section 80C.- You can invest a sum of 1.5 lac.- It does not invest in equities, a non-participating savings plan.- The rate of interest is around 7.1 per cent as of 20226. Sukanya Samriddhi Yojana (SSY)Govt of India introduced this savings plan the provide a better life to the girl child. The parents of the girl child can invest in SSY for a maximum of 21 years.Return on this saving plan is one of the best among the other plans.Parents can use the amount accumulated under Sukanya Samriddhi Yojana for higher education or the marriage of the girl child.Benefits-- The contributor can avail of the contribution for tax benefits under section 80C of the income tax act.- The rate of interest is 7.6 per cent as of 2022.Final WordsChoosing the right saving plan can make or break your financial goals. You should be careful in selecting the right plan based on the benefits of the savings plan. A plan which might be the best saving plan in India might work for someone but may not necessarily be beneficial for you.This story is provided by GPRC.will not be responsible in any way for the content of this article. (ANI/GPRC)( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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Business :Best savings plan to invest in 2022

It is crucial to understand the benefits of different saving plans in India. Read this to know about the best saving plans and its benefits ...