Best ways to increase your safe savings

Boosting the savings for emergencies, clearing the debts and earning maximum out for investments requires careful planning, implementation of smart financial decision-making. If you too want to spice up your savings and rebuild your emergency funds, these tips will help you to achieve the desired goals. Let us compare different investment options like employee provident fund, ppf etc.

Tips to boost your savings: It is crucial to have the right mix of investment options in your portfolio if you want to increase the savings.

Investing in PPF: You can invest your savings in long-term investment schemes backed by the government. You can invest funds in your PPF account, ranging between Rs—500 to 1,50,000 in a financial year for a minimum tenure of 15 years. The significant advantage of investing in a PPF account is that the PPF is an EEE investment scheme, which means that the interest earned, principal amount and the total amount earned at the maturity period is exempted from taxes. The other benefit of investing in a PPF scheme is that the government determines the interest rate every quarter and is not subject to market risks. Currently, the interest rate on PPF is 7.10% EPF is another investment scheme with a fixed rate of return.
Liquid funds: Liquid funds are short-term debt instruments such as commercial paper, treasury bills and certificate of deposit, which matures within 91 days. You can invest in liquid funds if you want to maintain high liquidity in your investments as they can redeem any day.
Fixed deposits: You can invest in bank fixed deposits or company fixed deposits for a short-term and long term ranging between 7 days to 10 years. These deposits are the safest form of investments with a fixed rate of return. You can withdraw the funds prematurely by paying the penalty. To get tax exemptions, you can invest in 5 year- tax- free- fixed deposits as well.
Accrual funds: The accrual funds are mutual funds that have a low risk in the rate of interest offered by them. You can invest in the short term as well as medium-term accrual funds to get higher returns than the fixed deposits. They are also more tax-friendly than the fixed deposits as you have to pay 20% tax on these mutual funds.
Tax-saving investments: If you want to boost your savings, you can invest in tax savings investments schemes of the government. Some of these schemes are mentioned below:

National Pension Scheme: You can get tax exemption up to Rs. 1.5 lakhs on NPS under Sec 80 C of Income Tax Act. Further, under Sec 80CCD (1b), you are eligible to get exemption up to Rs. 50,000 on your investments.
Sukanaya Samridhi Yojana: Under Sec 80C of the Income Tax Act, you can get tax exemption up to Rs. 1.5 Lakhs to secure the future of your girl child. You can earn tax benefits on the interest accrued and the maturity amount received at the end of tenure.
National Savings Certificate: You can claim tax exemption up to Rs. 1.5 lakhs on the investments made under Sec 80 C of the Income Tax Act. The tax benefits can also be received on the interest earned on NSC.

It is thus evident that a balance of risk- free investments and investments with a moderate risk factor can add missing spice to the portfolio of the investments and can, therefore, help to boost the savings with the maximum returns and profits.

Summary: Best ways to increase your safe savings

Boosting the savings for emergencies, clearing the debts and earning maximum out for investments requires careful planning, implementation of smart financial decision-making. If you too want to spice up your savings and rebuild your emergency funds, these investment schemes will help you to achieve the desired goals.

Investing in PPF: You can invest your savings in long-term investment schemes backed by the government. You can invest funds in your PPF account, ranging between Rs—500 to 1,50,000 in a financial year for a minimum tenure of 15 years.
Liquid funds: Liquid funds are short-term debt instruments such as commercial paper, treasury bills and certificate of deposit, which matures within 91 days. You can invest in liquid funds if you want to maintain high liquidity in your investments as they can redeem any day.
Fixed deposits: You can invest in bank fixed deposits or company fixed deposits for a short-term and long term ranging between 7 days to 10 years. These deposits are the safest form of investments with a fixed rate of return.
Accrual funds: The accrual funds are mutual funds that have a low risk in the rate of interest offered by them. They are also more tax-friendly than the fixed deposits as you have to pay 20% tax on these mutual funds.
Tax-saving investments: If you want to boost your savings, you can invest in tax savings investments schemes of the government. Some of these schemes are mentioned below:

National Pension Scheme
Sukanaya Samridhi Yojana
National Savings Certificate