It’s very important to save and invest if you want to grow Rich. The amount you save and invest is not important. You have to save and invest and take responsibility for your future. The amount saved and invested depends on financial goals and priorities. You may save/invest a few thousands or even lakhs of rupees.
But, do you know you can grow rich, just by saving and investing Rs 500 a month? Want to know more on Investment Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
Growing rich is all about the will to grow rich and not just the amount. If you can save/invest just Rs 500 a month, you will soon be on the path to riches.
Opening an RD with banks is a very safe investment and is suitable if you are a conservative investor, even with small monthly savings. You can invest in an RD, even with just Rs 100 a month. The tenure of investment could be a year, up to a maximum of 10 years. The interest earned on the RD depends on banks and can be 6-7% a year. The interest income earned is added to taxable salary and taxed as per tax bracket.
An investment in the RD enjoys guaranteed returns. The interest income of more than Rs 10,000 a year attracts TDS at 10%.
If you don’t like to take risk in investments, put your money in the 5 Year Post Office Recurring Deposits. The Post Office Recurring Deposit has a maturity period of one year, two year, three years or five years.
But, only Post Office Recurring Deposits with a maturity term of 5 years enjoy tax deductions under Section 80C up to Rs 1.5 Lakhs a year. You can invest in a Post Office Recurring Deposit with just Rs 10 a month. There is no upper limit vis-à-vis the amounts that can be invested in the Post Office Recurring Deposit. You can exit the investment in the Post Office Recurring Deposit, even before maturity.
You are allowed a single withdrawal of up to 50% of the money in the account, after a year of opening the Post Office Recurring Deposit. You enjoy an interest rate of 6.9% a year, which is compounded quarterly.
What does this mean? If you deposit Rs 10 in the post office RD, this amount fetches Rs 717.43 on maturity. The interest you earn is added to taxable salary and taxed as per tax bracket. The interest which exceeds Rs 10,000 a year invites TDS @10%.
You can invest in the National Savings Certificate popularly called NSC, at the local post office. This is a safe investment with a lot of benefits. You can invest with amounts as low as Rs 100 to as high as Rs 10,000.
NSC has the option of twin maturity periods. You can invest in the NSC with maturity periods of 5 years and 10 years with no upper limit. The investments in the NSC enjoy tax deductions up to a maximum of Rs 1.5 Lakhs a year under Section 80C of the Income Tax Act.
NSC currently offers an interest rate of 7.6% which is compounded annually. You get the total investment along with the interest, only at maturity. These are some of the investments where you can invest just Rs 500 a month and soon tread the path to riches. All you have to do is save and invest diligently and soon you will be on the path to riches.
Be Wise, Get Rich.
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