8 Great Saving Plans in India Which You Can Opt For 1 Year

There are many good saving schemes in India and there are provisions for making both short term and long term deposits. Short term savings plan is good when one is sure that they will need some additional money in a period of time and then the extra money can be incurred in the form of interests and benefits without having to pay for it out of one’s own pocket. Here is some short term Savings plan in India which can be done for 3 months to 1 year.

1. Liquid Mutual Funds: Investing in Liquid Mutual Funds can be liquidated in no time and yet they offer 5% to 8% interet per annum. This is a good way to take care of idle cash while also having the option of liquidity. These are also low risk mutual funds and they can easily help increase the money over a short period of time. The returns are fairly assured, and because one liquidates the money fairly easily, the money does not have to go through major fluctuations that happen over time.

2. Ultra Short Term Mutual Funds: These are short term MFs invested in short term government securities and corporate securities and money market instruments and can give returns as high as 6 to 8%. Those who have moderate aptitude for risk taking are guaranteed more or less good returns.

3. Investments in Small Finance Banks: These are new age banks like Airtel, who are offering highest returns on investments of 3 months to 12 months, of about 7.25% which is significantly more than what a usual savings bank would normally offer and is considered to be a good savings plan.

4. Fixed Deposits: Banks are now lowering interests on FDs and yet this continues to be a secure option to keep one’s money. For shorter periods of one year, some banks like Bandhan Bank and Repco Bank are offering interest rate of 8% per annum for one year FD which is quite high. Banks and NBFCs provide very good FD schemes along with all kinds of loans like personal loans, home loans and business loan. If you want loans with pre- approved offers in a most hassle free manner, contact Bajaj Finserv today and check out your pre- approved offer.

5. Savings banks Interest: There are Savings banks which are also offering some good returns and this is very low risk investment. Most banks have a SB interest rate of 4% but banks like Kotak Mahindra are offering interest of about 6%. As a best investment plan for one year, this is a safe option.

6. Post office term Deposits: Those who are safe investors and do not want to invest in mutual funds at all or in the stock market, can also opt for Post Office Term Deposit schemes. Term Deposits in Post Offices offer a return of about 7% to 7.5% per annum and since they are guaranteed by the GOI, there is always a good return.

7. Fixed Maturity Plans: Some MFs come with a fixed Maturity of 1 to 3 years and they are issued at regular intervals by MF companies. Those with low risk aptitude with an expected return of 7 to 9% can invest in these funds and they are not redeemable before the maturity period if they are not tradeable on stock exchange. It is one of the best investment plan for one year.

Recurring Deposit: This is a good option for those who are planning to invest in short amounts and then want to get their money back in a year or so. This is a good way to save money for meeting short term goals and the returns are steady and is quite popular among the average middle class.