Savings play a crucial role in your financial future. If you are about to kick-start your savings journey in 2020, there are some great plans to choose from. Ten of the best options are discussed in this post.

As financial literacy is improving in India, people are slowly but steadily understanding the importance of saving. It is only when you are committed to an effective savings plan that you could strengthen your financial future and achieve your life goals. Moreover, the sooner you start saving, the higher are the chances of achieving your financial objectives

Fortunately, the modern world of savings and investment has an option for every type of investor irrespective of their age, risk appetite, or financial goal. If you are planning to begin your savings journey in 2020, these are the ten options you can consider-

  1. ULIP

Unit Linked Insurance Plan (ULIP) is a smart way to generate returns on your investments while also getting life coverage. Top insurers offer many different fund options to ULIP investors so that they can select one as per their risk appetite and objectives.

  1. ROP Term Plan

If long-term savings is your priority, you can also consider a Return of Premium (ROP) Term Plan. It is a type of term insurance where the nominee receives the sum assured on policyholder’s death within the tenure. If the policyholder survives, he/she gets the entire premiums paid throughout the policy tenure.

  1. Mutual Funds

Even with mutual funds, you get to select different fund options. There are equity funds, debt funds, ELSS, hybrid funds, and more. You can invest a lump sum amount or start a SIP with just Rs. 1,000/month in the fund of your choice.

  1. PPF

For risk-free returns, you also have the option of investing in Public Provident Fund (PPF). Your PPF investment earns a fixed rate of interest over a minimum tenure of 15 years. You also get the option to remain invested for more than 15 years.

  1. NPS

Another government-backed investment scheme is the National Pension Scheme (NPS). It is more of a retirement plan where your investment earns a fixed rate of interest. While the returns are not guaranteed as some part of your investment amount is invested in equities, it is known to offer excellent returns in the longer run.

  1. FD

For risk-averse investors, the traditional Fixed Deposit (FD) is also a great choice. You invest a fixed amount for a fixed duration and earn fixed returns on maturity. Some banks also offer multiple interest payment options such as monthly, quarterly, half-yearly, and yearly.

  1. RD

If you don’t want to invest a lump sum amount but still want the safety of FD, you can consider Recurring Deposit (RD). It allows you to invest a fixed amount in your RD account every month for a fixed duration and earn fixed returns on the same.

  1. NSC

National Savings Certificate (NSC) is also an excellent savings plan. It is a fixed-income scheme where the investment earns a fixed rate of interest. You can visit your nearest post office to open your NSC account.

  1. Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana (SSY) is an initiative by the Indian government under its “Beti Bachao Beti Padhao” flagship program. It is a savings scheme for parents wanting to invest in the future of their girl child. Parents can open an SSY account in the name of their girl child if she is below ten years.

  1. Direct Equity

Direct equity is more of an investment plan than a savings plan. It is one of the most volatile asset classes and requires a considerable amount of knowledge and experience. But if you are up for the challenge, equities have the potential to deliver returns higher than all the other types of investments.

Save Regularly for Long-Term Growth

While there are several options available, your commitment to your savings plan is what matters in the end. If you don’t save and invest regularly, even the best of investment options might fail to deliver the expected results.