All of us work real hard to make money, save money, grow money. Lets see some interesting ways and means to save money by investing in many different financial instruments. As a common man all of us do concern about our hard earned money. This concern does make us look for risk averse financial instruments. Today we will be discussing more details on many different instruments to pick and choose from. You can invest in any one of them depending on your risk potential
1) Bank Savings Account - If you want to start earning money on your salary from the minute it is deposits, open a savings bank account and avail automated deposit facility. If you are playing real safe you can choose nationalized banks with best service like State Bank of India, Bank of Baroda, PNB to name a few. IF not look for Yes Bank the fourth largest private sector bank in India. This offers exorbitant interest rate of 7% in savings account for amount over 1 lakh. If you choose to retain below one lakh you end up making 6% interest in savings account. For amount below Rs.10000 you earn tax free interest. In nationalized banks interest on savings account is around 4%. You still have to pay taxes on interest earned in savings account. This is a risk-free safe instrument
2) Fixed Deposits - You can choose to save your money for better returns in 0% risk option the fixed deposit. Choose your tenure, interest rate in bank of your choice. This is an instrument that can be closed prematurely with some penalty. So, liquidity option is perfect with fixed deposit. You end up paying taxes on interest earned as per Indian Income Tax rules. To save money choose to invest in Sukanya Samridhi Yojana, tax free fixed deposits etc. still interest earned is taxable. But your money is 100% safe but return is taxable and is not so great
Sukanya Samridhi Yojana
Prime minister shri narendra modiji has been much interested in health, education and well being of girl children in India. Following umpteen measures taken by him to promote education and well being of girl children in gujarat, shri modi is now taking necessary steps to extend his service across India. This is a step by Shri modi towards Beti Bachao (Save girl baby) campaign
As a first measure towards that Sukanya Samridhi Yojana Scheme has been introduced. This scheme is geared towards well being of girl children in India
1) You can open an account in name of your girl child in commercial banks like SBI, Union Bank, Bank of Baroda, PNB, Bank of India, Corporation Bank, Central Bank of India to name a few, post office. Look for authorized branches in commercial banks
2) Girl child should be less than 10 years. As an initial buffer government offers 1year age buffer. It means girl child who has attained the age of 10 years 1 year prior to the announcement between December 2013 to December 2014, is also eligible to open account under this scheme
3) The best benefit is that you can avail 1.5 lakhs 80C deduction by investing in this scheme. We can choose to invest as low as Rs.1000 upto Rs.1.5 lakh
4) This is absolutely fantastic as only interest is taxable, deposits are safe yielding better
5) You need birth child, age proof of your girl child before opening account
6) Account is easily transferrable form one bank to another as well as from one post office to another post office
7) Early withdrawal for marriage and education is possible. However, only 50% of amount can be withdrawn. However, the girl baby should have attained 18 years before withdrawing money from account. This prevents early child marriage
8) This scheme offers enticing interest rate of 9.1%. Interest earned is taxable , only principal can be availed towards 80C deduction. The interest remains compounded on an annual basis
9) The validity of this account is 21 years from date of opening, or marriage of girl child who has attained 18 years of age. However, not official the age limit of girls marriage can change from 18 to 21 in future and this validity may or may not change in future
So, what is the meaning of sukanya samridhi yojna? In simple terms it means Girl Prosperity Scheme
3) Mutual Funds - Mutual fund is a basket of stocks. These are picked , managed by mutual fund companies. Investment in mutual fund is possible via online portal of banks. Now the MFUtilities India has brought a single window system. Using a single CAN number you can choose to transact mutual funds across participating AMC (Asset Management Companies). Note that many top rated mutual fund companies are members of MFUtilities India. Mutual fund is set of stocks with proper allocation of money in each stock. This is done by trained fund manager. As the advertisement always says mutual funds are subject to Market Risk. Read Investment document carefully before investing. This is less risky compared to direct stock trading. Mutual fund provides hedging which may not be possible with individual stock trading. Maturity period of most mutual funds can be left to investor. IF you want break and take it today. However, as per tax laws if you choose to hold a mutual fund for more than 1 year you pay no taxes in India. There is a special class of mutual fund called ELSS the Equity Linked Savings Scheme that has lock-in period of 3 years. You can't break and take it before that. Though the mutual funds offer better return that are riskier than stocks
4) Stock Trading - If you wan to trade stocks in BSE, NSE stock exchanges directly go ahead and do so. Stock trading is the riskiest investment option with best returns and rewards. Open a trading account and start your trading today
5) Bonds - Bond in simple terms is a credit instrument offered by government, public sector agency, private companies. This offers interest rate with period of 1 year upto 10 years. Risk is associated with bonds. they are not 100$ safe as fixed deposits
6) Debentures - Though they serve purpose same as bonds they can be convertible to company shares in future as well as offered in non-convertible form with coupoun rated from 9% to 12%. They can be purchased using trading account. Some popular firms that have raised investment using NCD include Muthoot finance, Shriram transport finance etc
7) Treasuries - These are instruments offered by government that carry low risk
8) Fixed Maturity Plan - They invest in debt instruments that mature within the plan period. They are less risky but can be yielding better at times
9) Liquidity funds - They are offered for less tenure like 91 days. These instruments involve investment in debt instruments and can be liquidated real fast
1) Bank Savings Account - If you want to start earning money on your salary from the minute it is deposits, open a savings bank account and avail automated deposit facility. If you are playing real safe you can choose nationalized banks with best service like State Bank of India, Bank of Baroda, PNB to name a few. IF not look for Yes Bank the fourth largest private sector bank in India. This offers exorbitant interest rate of 7% in savings account for amount over 1 lakh. If you choose to retain below one lakh you end up making 6% interest in savings account. For amount below Rs.10000 you earn tax free interest. In nationalized banks interest on savings account is around 4%. You still have to pay taxes on interest earned in savings account. This is a risk-free safe instrument
2) Fixed Deposits - You can choose to save your money for better returns in 0% risk option the fixed deposit. Choose your tenure, interest rate in bank of your choice. This is an instrument that can be closed prematurely with some penalty. So, liquidity option is perfect with fixed deposit. You end up paying taxes on interest earned as per Indian Income Tax rules. To save money choose to invest in Sukanya Samridhi Yojana, tax free fixed deposits etc. still interest earned is taxable. But your money is 100% safe but return is taxable and is not so great
Sukanya Samridhi Yojana
Prime minister shri narendra modiji has been much interested in health, education and well being of girl children in India. Following umpteen measures taken by him to promote education and well being of girl children in gujarat, shri modi is now taking necessary steps to extend his service across India. This is a step by Shri modi towards Beti Bachao (Save girl baby) campaign
As a first measure towards that Sukanya Samridhi Yojana Scheme has been introduced. This scheme is geared towards well being of girl children in India
1) You can open an account in name of your girl child in commercial banks like SBI, Union Bank, Bank of Baroda, PNB, Bank of India, Corporation Bank, Central Bank of India to name a few, post office. Look for authorized branches in commercial banks
2) Girl child should be less than 10 years. As an initial buffer government offers 1year age buffer. It means girl child who has attained the age of 10 years 1 year prior to the announcement between December 2013 to December 2014, is also eligible to open account under this scheme
3) The best benefit is that you can avail 1.5 lakhs 80C deduction by investing in this scheme. We can choose to invest as low as Rs.1000 upto Rs.1.5 lakh
4) This is absolutely fantastic as only interest is taxable, deposits are safe yielding better
5) You need birth child, age proof of your girl child before opening account
6) Account is easily transferrable form one bank to another as well as from one post office to another post office
7) Early withdrawal for marriage and education is possible. However, only 50% of amount can be withdrawn. However, the girl baby should have attained 18 years before withdrawing money from account. This prevents early child marriage
8) This scheme offers enticing interest rate of 9.1%. Interest earned is taxable , only principal can be availed towards 80C deduction. The interest remains compounded on an annual basis
9) The validity of this account is 21 years from date of opening, or marriage of girl child who has attained 18 years of age. However, not official the age limit of girls marriage can change from 18 to 21 in future and this validity may or may not change in future
So, what is the meaning of sukanya samridhi yojna? In simple terms it means Girl Prosperity Scheme
3) Mutual Funds - Mutual fund is a basket of stocks. These are picked , managed by mutual fund companies. Investment in mutual fund is possible via online portal of banks. Now the MFUtilities India has brought a single window system. Using a single CAN number you can choose to transact mutual funds across participating AMC (Asset Management Companies). Note that many top rated mutual fund companies are members of MFUtilities India. Mutual fund is set of stocks with proper allocation of money in each stock. This is done by trained fund manager. As the advertisement always says mutual funds are subject to Market Risk. Read Investment document carefully before investing. This is less risky compared to direct stock trading. Mutual fund provides hedging which may not be possible with individual stock trading. Maturity period of most mutual funds can be left to investor. IF you want break and take it today. However, as per tax laws if you choose to hold a mutual fund for more than 1 year you pay no taxes in India. There is a special class of mutual fund called ELSS the Equity Linked Savings Scheme that has lock-in period of 3 years. You can't break and take it before that. Though the mutual funds offer better return that are riskier than stocks
4) Stock Trading - If you wan to trade stocks in BSE, NSE stock exchanges directly go ahead and do so. Stock trading is the riskiest investment option with best returns and rewards. Open a trading account and start your trading today
5) Bonds - Bond in simple terms is a credit instrument offered by government, public sector agency, private companies. This offers interest rate with period of 1 year upto 10 years. Risk is associated with bonds. they are not 100$ safe as fixed deposits
6) Debentures - Though they serve purpose same as bonds they can be convertible to company shares in future as well as offered in non-convertible form with coupoun rated from 9% to 12%. They can be purchased using trading account. Some popular firms that have raised investment using NCD include Muthoot finance, Shriram transport finance etc
7) Treasuries - These are instruments offered by government that carry low risk
8) Fixed Maturity Plan - They invest in debt instruments that mature within the plan period. They are less risky but can be yielding better at times
9) Liquidity funds - They are offered for less tenure like 91 days. These instruments involve investment in debt instruments and can be liquidated real fast
