There are lots of financial schemes available in India. Many of them provides you guaranteed returns, high interest rates, tax savings under various sections of INDIAN INCOME TAX ACT and much more benefits.

These financial plans not only provide you money growth but also provide you with financial security at various steps in your life. It depends on your needs which product suits you best.

Determine your requirements...whether it short term or long term planning; how much risk can you afford, risk taking capacity is directly proportional to returns; whether it will be one time savings or regular savings in small amount and knowledge of pros and cons of the investment product you buy.

For example, if you are looking for short term savings then you can invest your money in post offices , government bonds, mutual funds, and if you are concentrated to long term savings then public provident funds (PPF ), life insurance, long term bank deposits (FDs, RDs) can help you.


1. Bank Fixed Deposits, [Term Deposit]

In a Fixed Deposit Saving Scheme a certain sum of money is deposited in the bank for a specified time period with a fixed rate of interest.

When you want to invest your hard earned money for a longer period of time and get a regular income, Fixed Deposit Scheme is ideal. It is SAFE, LIQUID and FETCHES HIGH RETURNS.

Loan / Overdraft facility is available against bank fixed deposits. Now many banks don't charges for premature withdrawal.

2. Recurring Deposits

Under a Recurring Bank Deposit Saving Scheme, investor invests a specific amount in a bank on a monthly basis for a fixed rate of return.

The deposit has a fixed tenure, at the end of which you get your principal sum as well as the interest earned during that period.

Recurring Deposit provides you the element of compulsion to save at high rates of interest applicable to Term Deposits along-with liquidity to access that savings any time.

Government Tax Savings Bonds

RBI Bonds or RBI Relief Bonds

RBI Bonds are tax saving bonds that have a special provision that allows the investor to save on tax. These Bonds are instruments that are issued by the RBI.

The interest is compounded half-yearly. Maturity period of RBI Bonds is five years, and interest received is tax-free in the hands of the investor.

Other Savings:

1. Infrastructure Bonds

Infrastructure bonds are available through issues of ICICI and IDBI, brought out in the name of ICICI Safety Bonds and IDBI Flexibonds.

These provide tax-saving benefits under Section 88 of the Income Tax Act, 1961, for the investor. You can reduce your tax liability by upto Rs 16,000 per annum.

2. Company Fixed Deposits

Fixed deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits. Financial institutions and Non-Banking Finance Companies (NBFCs) also accept such deposits.

3. Life Insurance:

Life insurance saving schemes for government owned Life Insurance Corporation of Indiaand other private life insurance companies like Bajaj Allianz, Birla Sun Life Insurance, HDFC Life Insurance, ICICI Prudential

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