Top 4 Ways To Save Money- PPF, FD, RD, NSC

Many of us want to save money for the future. But we do not understand the best way to save money. Today I will tell you about the top 4 ways to save money. These are: PPF, FD, RD and NSC.

 1. PPF:

  

The full name of PPF is Public Provident Fund. It is a popular scheme regulated by the Government of India. Any Indian can open this account. Only one account can be opened in one's name. This account can be opened at any bank or post office. There are many benefits to this account.

      It is a completely risk-free scheme to be regulated by the Government of India. You need to keep a minimum of 15 years worth of money in this account. You have to keep a minimum of Rs. 500 per year and a maximum of Rs. 1.5 lakh. A maximum of 12 deposits can be made in a year. The current annual interest rate on this PPF account is 7.1 %. After every three months the government may change the interest rate or keep it the same.

      After 15 years, the money that can be obtained by combining interest and principal is completely tax free. Interest will be available at compounded rate which is very profitable.

    Money can be withdrawn after 5 years for special needs. Such as - seriously ill, higher education, travel to other countries etc. However, in that case the interest will be less. 

      If you wish, you can extend the term of this account after 15 years. This period can be extended every five years. This way you can extend the term as many times as you like. 

     If you close the account after 15 years, you will get all the interest and principal. And if you want to keep the account running even after 15 years , you can withdraw money once a year if you wish.

 2. FD:

The full name of FD is fixed Deposit. Any Indian can open this account in any bank. You only have to invest money once in this account . The interest rate that the bank will pay when investing money will be fixed. The interest rate on your FD account will not change after FD.

    FD can be done for maximum 10 years. But you can do if for any period of less than 10 years if you want.

  Different  banks offer different interest rates at different times. Currently the interest rate is around 5 % to 7 % . However, in the case of senior citizens, the interest rate is higher.

3. RD:

The full name of RD is Recurring Deposit. The best scheme to deposit a certain amount of money every month is RD. Any Indian can open this RD account in any bank.

  You have to deposit money in this account every month. This can be done for a maximum of 10 years. Interest increases at a compounding rate. 

   When the term expires after 10 years, the interest and principal are combined to get the money together. 

   You can deposit money in RD account for any period of less than 10 years if you wish. At present the annual interest rate varies from 4.5 % to 6.5 % in different banks.

4. NSC:

The full form of NSC is National Savings Certificate. This is a popular post office scheme. Any Indian can avail this scheme by opening this account at post office. 

    In this scheme you have to deposit money together to purchase NSC certificate. 

    At present the interest rate of this post office scheme is 6.8 %. Tax exemption is available up to a maximum of Rs. 1.5 lakh. This NSC can be purchased for five years.

      You can use these four best schemes to save money. These schemes are completely risk free. Not only money will be saved but also big money will be earned. PPF, FD, RD and NSC are popular investment schemes.