What Are Your Investment Objectives?

In today’s world, financial security is supreme. The dynamic economy of India requires people to curtail their expenses in order to secure their future. This means that, if you don’t start saving from an early age, you can face difficulty during your retirement age. Moreover, most of us are interested in increasing our bank balance whilst storing money in our accounts.

Hence, this article provides you with some of the best policies to place your money on. Tax saving investments are abundantly present and you can easily spend some money on these schemes to have a better retired life.

·         Life Insurance

Life insurance isn’t a typical form of investment, but because of its lucrative offers, it can be counted as a tax saving investment.

Here are some of the features and benefits of Life Insurance policy:

1.    The premium paid on the life insurance policy is deductible from your wages, thus lowering the income tax factor.

2.    The premium paid for Unit Linked Insurance Plans are completed exempted from taxes, thus making life insurance a devoured tax saving investment.

3.    Life insurance policies provide one with backup money to the nominees in case of the investor’s demise.

4.    The total amount paid to the benefactor is not taxable in case of contingency.

·         Health Insurance

Unlike life insurance, health insurance might not be a conventional form of tax saving investments because it does not offer any cash return. However, the amount received by the health insurance coverage makes this a coveted investment platform.

·         Here are some of the features and benefits offered by the Health Insurance policy:

1.    The money paid to the insured is not taxable, in case of disability.

2.    This scheme allows tax deduction on the premium amount paid.

3.    Senior citizens get the benefit of increased tax deduction on the premium, that is, up to Rs. 20,000.

·         Public Provident Fund

The Public Provident Fund accounts are extremely flexible, convenient and efficient. You can receive maximum tax savings with relative ease therefore, making PPF one of the best tax saving investments. Many major banks offer this facility to its customers so you don’t have to look very far to invest in this scheme.

·         Here are some of the features and benefits offered by the Public Provident Fund:

1.    Partial withdrawal is available after completion of 5 years of policy term.

2.    Loan can be extracted against this policy upon completion of 5 years of policy term.

3.    The interest paid on PPF accounts is tax liberated.

4.    It has a guaranteed return policy of up to 8%.

5.    The amount contributed to the PPF account is tax deductible.

·         Senior Citizens’ Saving Scheme

You can never be too old to invest in tax saving investments. The government enabled, Senior Citizen’s Saving Scheme allows retired citizens of India to spend some money on authorized cash back policies.

Here are some of the features and benefits offered by the Senior Citizen’s Saving Scheme:

1.    Interest is provided in the form of interest, regularly.

2.    Although, the interest on this scheme is taxable, most senior citizens earn their income in the form of pension, which is lesser than the taxable limit, thus the taxability of the interest is rendered null and void.

3.    The policy term is of 5 years but withdrawal can be consented subject to certain terms and conditions.

4.    The compound interest provided is about 9.2% and compounded on a quarterly basis.

5.    The lower limit of payment is Rs 1000, whereas the upper limit is a whopping Rs. 15 lakhs.

6.    The interest is deposited to the linked accounts of investors on March 31^st, December 31^st, June 30^th and September 30^th, irrespective of when the investor makes the deposit.

Other tax saving investments include tax free infrastructure bonds, mutual funds, pension schemes, etc. But some can prove to be a very high risk investment from which people that are uncomfortable in donating a lump sum amount on a high risk, high return policy should stir clear.

The above-mentioned schemes are most trustworthy and efficient. You can apply to these policies whenever mentioned by your banks, because most of these schemes are enabled by the banks.