Savings Schemes in India
What are Savings Schemes?
A savings plan is an essential financial instrument that lets you save for your planned future needs as well as prepare for the unexpected. Savings plans are designed to offer the dual benefit of life cover^ and low-risk savings. The life cover^ provides financial security to your loved ones in case of an unfortunate event and the savings amount enables you to fulfil your financial goals.
Savings plans offer assured financial growth. These plans are not market-linked and offer guaranteed` returns without market risk. You get to build large savings over time and cater to your short, medium, and long-term goals. They also provide tax* benefits as per the prevailing tax laws.
`T&C apply
Savings Plans Available in India
Below are some savings plans offered by ICICI Prudential Life:
ICICI Pru Sukh Samruddhi
This savings plan provides you with a life cover^ and helps you grow your money. The plan offers two choices – Income and Lump Sum.
Income option: You may choose this option if you want to receive a guaranteed` income for a certain period of time. You may consider this for goals such as your child’s education, annual vacations and more. You can choose to receive this income monthly or yearly, as per your requirements
Lump Sum option: This option provides you with the payout from the plan all at once. You may consider this for goals such as your child’s admission to college, wedding, buying a car and more
The plan offers guaranteed` amounts that are fixed at the time of purchase of the policy. In addition, the plan provides you with bonuses that add to the overall returns from the plan.
`T&C apply
You may also avail of the below tax benefits* offered by the plan:
- The premiums paid under the policy are allowed as deduction up to ₹ 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961
- The amount received under your policy is exempt subject to conditions prescribed under Section 10(10D) of the Income Tax Act, 1961
Types of Savings Plans in India
You may have financial goals such as travelling, buying a house, your child’s education or marriage, a financially independent retirement and more. A savings scheme allows you to set aside a portion of your income regularly to save for your future goals. Below are some of the best savings schemes in India:
Unit-Linked Insurance Plans (ULIPs)
ULIPs are life insurance plans that offer the dual benefit of insurance and investment. You get a life cover^ to financially secure your loved ones in case of an unfortunate event. With these plans, you can invest in different types of funds based on your risk appetite. This allows you to earn potentially higher returns on your investments based on market conditions and build your wealth over time.
Endowment Plans
Endowment plans offer you the dual benefit of life insurance and savings. These plans not only help you save money but also provide a life cover^ that helps financially secure your loved ones in case of any unfortunate event. The returns you receive from these plans are fixed at the time of the purchase of the plan and not subject market conditions.
Public Provident Fund (PPF)
PPF is a government-backed tax-saving* instrument that can be used to build long-term savings. You can invest a maximum of ₹ 1.5 lakh every financial year. Additionally, it also offers tax* benefits subject to conditions under Section 80C of The Income Tax Act, 1961.
Post Office Monthly Income Scheme (POMIS)
POMIS is a savings scheme where you get a fixed monthly income against your investment. You can invest in this instrument through any of the Post Office branches. It allows individual investors to allocate up to ₹ 9 lakh, while joint investors can invest up to ₹ 15 lakh.
Senior Citizen Savings Scheme
In the Senior Citizen Savings Scheme, you make a one-time investment and get a fixed regular income. This instrument is specifically designed for senior citizens. You can invest a minimum of ₹ 1,000 and maximum of up to ₹ 30 lakh into the account. You can opt for SCSS individually or with your spouse. The account matures after five years from the date of opening. However, you have the option to extend it for an additional period of three years. The instrument allows deductions subject to conditions under Section 80C of The Income Tax Act, 1961
Sukanya Samriddhi Yojana (SSY)
SSY is a government-backed savings scheme that helps financially secure the cost of higher education of a girl child. You can invest as little as ₹ 250 in SSY. The maximum deposit limit is ₹ 1.5 lakh per financial year.
Atal Pension Yojana (APY)
APY is a pension initiative by the Government of India, specifically targeting the unorganised sector. This is a voluntary pension plan where you can get a fixed pension ranging from ₹ 1,000 to ₹ 5,000 per month. The actual pension amount is determined by the contributions made by you. You start receiving the benefits after reaching the age of 60. APY also offers tax* benefits.
Employee Provident Fund (EPF)
EPF is a savings scheme where both employees and employers contribute a percentage of the employee's basic salary. EPF helps working professionals set aside some amount regularly and save for their retirement. It is managed by the Employees' Provident Fund Organisation (EPFO). EPF also offers tax* benefits subject to conditions under Section 80C of The Income Tax Act, 1961.
National Pension Scheme (NPS)
NPS is a market-linked, voluntary pension scheme offered by the Government of India where you can make regular investments. NPS matures when the contributor turns 60. However, you can continue contributing beyond the age of 60, up to the age of 75. Contributions to NPS are tax* deductible under Section 80C of the Income Tax Act 1961.
Savings Plans by ICICI Pru Life
ICICI Pru Guaranteed Income For Tomorrow (Long-term)
This savings plan provides you with a life cover^ and helps you grow your money. The plan offers two plan options – Income and Income with 110% ROP (Return of Premium).
Income: Under this option, you pay premiums for a certain period of time (known as the premium payment term) and one year after the completion of premium payment term, you get guaranteed` income at the end of every month/year for a certain period, as chosen by you.
Income with 110% ROP: This option is similar to the Income option. In addition, you will get back 110% of total premiums paid by you at the end of the policy term
The plan offers guaranteed` amounts that are fixed at the time of purchase of the policy.
`T&C apply
You may also avail of the below tax benefits* offered by the plan:
- The premiums paid under the policy are allowed as deduction up to ₹ 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961
- The amount received under your policy is exempt subject to conditions prescribed under Section 10(10D) of the Income Tax Act, 1961
ICICI Pru Guaranteed Income For Tomorrow
This savings plan provides you with a life cover^ and helps you grow your money. This plan provides you guaranteed` amount in the form of lump sum or regular income, as per your choice. You may also choose to receive the income from the plan starting as early as the year following the purchase of the plan.
`T&C apply
You may also avail of the below tax benefits* offered by the plan:
- The premiums paid under the policy are allowed as deduction up to ₹ 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961
- The amount received under your policy is exempt subject to conditions prescribed under Section 10(10D) of the Income Tax Act, 1961
ICICI Pru Savings Suraksha Endowment Plan
This endowment policy provides you with a life cover^ and helps you grow your money. The plan offers guaranteed` amounts that are fixed at the time of purchase of the policy. Additionally, guaranteed` additions are added to your policy each year for the first five policy years.
`T&C apply
You may also avail of the below tax benefits* offered by the plan:
- The premiums paid under the policy are allowed as deduction up to ₹ 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961
- The amount received under your policy is exempt subject to conditions prescribed under Section 10(10D) of the Income Tax Act, 1961
Conclusion
Choosing the right savings scheme can help you accomplish your goals and secure your future financially. Ensure that you select a savings scheme that aligns with your goals.
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