Tax- saving is a crucial part of financial planning. Tax-saving can be intelligently strategized and can serve the dual objective of helping individuals meet their financial goals and save tax in the process.
To save on taxes you can either invest your money in insurance or market or put it in saving instruments for the future. You can also save on taxes by using the various allowances provided by the employers. Investment plans are a typical contrivance where one can pay today and reap benefits later. But apart from this, there are many more advantages of investment.
Here we have listed some of the best tax-saving investment options, plans, and schemes for 2016 that can help individuals maximize tax benefits.
1. Mutual Funds
Mutual funds are the best and most excellent performing plans that can help you to save and get good returns to secure the future of your loved ones. There are a variety of mutual funds available in the market that you can choose from. You need to do a bit of research before investing your hard-earned money. Mutual funds are subject to market risk, so carefully read the agreement before investing your money in it. Mutual funds can help you save the corpses of money for a better future for your family and support them financially when required later.
2. Fixed Deposits
FDs are low-risk investment plans that can help you grow your investments gradually over time and are considered one of the best saving plans. You can choose from a company’s FDs or to bank’s FDs. But, before investing in the FDs, you must consider the following factors:
- Credit Profile of the company or bank
- Interest rate
- Interest payout frequency
3. Recurring Deposits
Recurring deposits are the most effective and excellent way to save money for the secure future of your family. The returns in RDs greatly depend on the amount you are depositing into the RD account. So, if your target is higher, then savings should be higher per month. It allows you to save a good sum of money for a fixed intended period and the money saved can be used later to live a good lifestyle for your family.
4. National Saving Certificate or NSC
You are well versed with the significance of education and every parent endeavors to offer the best quality education to their child in the hope of a good future for their child. Due to inflation as the cost of living is increasing rapidly it is important to secure the future of your family.
There are many governments best saving plans and National Saving Certificate is one of them. NSC enables you to save a handsome amount of money which can be used later for various purposes like fulfilling the higher education of your child, buying a home, securing life after retirement, etc. By investing in such a saving scheme, you can rest assured that you are free from spending on the education of your child after a set period.
5. PPF
If you are looking for long-term investment plans, say for 10-15 years then PPF would be the right choice indeed. After a stipulated saving period you will have a good sum of money in your hand which you can spend for the better future of your family and loved ones. You can use that amount to provide a good lifestyle and fulfill the financial requirements of your family even in your absence.
These were some of the best saving plans that you can buy depending on your needs and goals.
