Introduction to Savings Schemes

Due to the fact that many people lack financial literacy, managing funds becomes difficult. The majority of people wouldn't have enough money to live comfortably. All of these were taken into account when the government of India initiated multiple savings schemes. These schemes assist individuals for future use, keeping aside a portion of their income. The government offers many schemes that help people live simpler lives.

Savings plans are tools that assist individuals reach their financial objectives over a certain period of time. The schemes are provided by the Government of India, Public/Private sector banks, and financial institutions. The interest rates updates or modifications suggested by the concerned entity such as the government or banks are adjusted on a regular basis.
 

What is Saving Schemes?

Basically, there are two categories of saving schemes in India, the one National Saving Scheme (NSS) and the other one is National Saving Certificate (NSC).

The Schemes NSS and NSC consists of Public Provident Funds, Post Office Saving Schemes, Pradhan mantri jan-Dhan Yojana Scheme,  Voluntary Provident Scheme, National pension System, Employee provident Fund, Atal Pension Yojna, Sukanya Samriddhi Yojana, Kisan VIkas Patra etc.

The revision or modification of these interest rates takes place quarterly or half yearly. The guidelines of each scheme provide the interest rate, investment amount, tax treatment of each scheme.
One can use these schemes for not only emergencies, retirement, higher education but also to reduce the debt in case of a period of losing the job and more.
 

List of savings scheme in India and their features

Importance of Savings

You must be thinking that saving money in bank accounts is a good idea and it provides a significant safety net but the concerns arise when many cash savings accounts offer low-interest rates. Hence, they may not be ideal for saving for long-term goals. Your cash savings account most certainly does not keep pace with inflation. Thus, your money may lose buying power over time. Investing in the above discussed savings schemes may help in such a situation.

Following are the reasons to get into Savings Schemes:

1. Savings schemes are the way if you want to be away from problems like unexpected medical emergencies or any personal contingencies.  
2. If you are aspiring to achieve higher education, courses or marriage of childrens taking assistance of the savings schemes could be very helpful.
3. If not incase of any emergencies or any aspiring situation you are in then this can definitely help you as an additional source of income to  make your life easy.
4. Discipline also requires financial habits as well so one low hanging fruit of these savings schemes are also the financial desciplines.
5. The most important aspect of these schemes are that they are backed by the government of India which means at most safety and guarantee of not only the principal but also the returns. 
6. You can customize the savings schemes as per your requirement of your financial goals.there are  wide range of savings schemes offered by government of India which caters to the needs of society irrespective of you belonging to what demographics, life cycle, age, professions  etc.
    

Conclusion

For the applicant in the search of long term savings instruments, the savings schemes are the best options. 

To sum up in India we have multiple schemes spread across the profiles of risk which caters to a wide range of investors. The most important aspect which you will appreciate is that it is backed by the government which comes up with the packages of safety and guarantee of return delivery the most.