Are you in your 20s and just started to work? If I give some insights about saving, will you be interested to read?
India is a country with lots of effective and profit-yielding schemes such as a fixed deposit that can let you take care of yourself and others when in need.
Before going any further, you need to make a promise that you will try to develop a saving habit and shun splurging habit as much as possible.
Mind it; the next few minutes of your life will help you be financially prepared to face many unexpected twists and turns of life! All set to know more? Let’s begin!
Invest in three investment schemes and be ready for tomorrow
1. Fixed deposits (FDs)
Most of the nationalized and private banks and non-banking finance companies (NBFCs) offer FD schemes. If you keep aside some part of your salary every month, you would be able to save a good amount to invest in a feature-rich fixed deposit scheme.
You need to invest Rs.25,000 minimum over 12-60 months and earn around 7.85-7.95% as profits. Senior citizens earn the maximum 8.10% as fixed deposit interest rate payouts.
An FD account can also help you avail a loan against FD and manage any life condition with confidence.
Banks’ FD may start from Rs.10,000 or more, but you may not get a higher rate of interest. Thus, it is suggested to opt for a FD scheme with a leading NBFC company.
2. Recurring deposits (RDs)
Want to keep aside some money and also earn some profits for doing that? Yes, if you want to save some money on a monthly basis and earn some interest profits, investing in a bank’s recurring deposit or RD would be a good idea.
Banks let you open an RD account with as low as Rs.500 only for tenor ranging between 3, 6, 9, months, 1 year or more. You get around 6% as interest on the maturity of your RDs. What’s more, you can also prematurely close an RD account, and service providers won’t charge you a penalty, generally.
3. Employee provident fund (EPF)
It is another method to save 12% of your salary in an Employee provident fund and earn some interest. Yes, organizations with more than 20 or more employees are bound to have an EPF provision in their salary structure.
What’s more, the benefit of this scheme is that your employer also contributes some amount along with the 12% that you put, meaning a considerable amount saved per month.
Each employee is given a UAN (Universal Account Number) number by Employee Provident Fund Organization, a Government of India initiative under the Ministry of Labour which is a permanent number.
If you switch jobs, you can provide your new employer with UAN number to continue your EPF contribution. If you want some urgent some money, you can withdraw the money.
You can only withdraw your PF 2 months after you have not been employed. Once processed, the amount is settled by NEFT (National Electronic Fund Transfer) and credited into your salaried bank account.
You can also withdraw your EPF amount online on the EPFO website if you have completed the KYC of your UAN account. For this, you need to register on the EPFO website to withdraw or to keep track of your monthly EPF contributions.
The Bottom Line
Don’t think that being in your 20s is not the perfect time to think of investments. Why?
You never know what life throws at you, and if you have some money, you could face situations with confidence.
Begin investing in afixed deposit, recurring deposit or EPF scheme and more and face future with élan!
