Savings and Investment Plans

However, to yield a good return on your investments, you should invest in the best saving plan. Here's how you can find the best savings plan that promises investments with high returns.

Choose investment plans that:

• Provides options of long-term investment
• Offers steady growth and high liquidity
• Fulfills your major financial goals
• Suits your investment and risk appetite

What is a Savings Investment Plan?

Investment plans are among the important financial instruments that help you build sustainable wealth for your loved ones' future. In fact, these instruments act as savings plans that help you grow your savings through systematic, long-term investments into the money market.
There are different types of savings investment plans you can choose from to meet your financial goals.

Types of Savings Plan

Here are some of the best investment plans and best tax saving plans you can choose from.

• Unit Linked Insurance Plans (ULIPs) :

  Unit Linked Insurance Plans (ULIPs) combine investment and insurance in a single financial product. These plans allow policyholders to invest in equity, debt, or hybrid funds while providing life coverage. The returns are subject to market performance, making ULIPs suitable for those with a higher risk appetite. They offer flexibility in choosing investment funds and tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.

• Public Provident Funds (PPF) :

  Public Provident Funds (PPF) is a popular long-term savings plan in India, offering tax-free interest and returns. This government-backed scheme has a tenure of 15 years, extendable in blocks of 5 years. Investments made in PPF are eligible for tax deductions under Section 80C, and the interest earned, and maturity proceeds are not taxable, making it one of the best saving schemes for risk-averse individuals.

• Sukanya Samridhi Yojana

  Sukanya Samriddhi Yojana (SSY) is designed to encourage savings for the future of a girl child. This government scheme allows parents to open an account in their daughter's name with a minimum annual deposit requirement. It offers a higher interest rate than other savings instruments and is also eligible for tax benefits under Section 80C. The account matures when the girl reaches the age of 21, with partial withdrawal allowed after she turns 18.

• Mutual Funds

  Mutual Funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. They offer the potential for higher returns than traditional savings accounts or fixed deposits and provide the flexibility to choose funds based on risk tolerance and investment goals. Mutual funds are managed by professional fund managers, which reduces the burden on individual investors to track market fluctuations directly.

• Senior Citizens Savings Schemes (SCSS)

  Senior Citizens Savings Schemes (SCSS) are a prime choice for individuals over 60 looking for safe and reliable investment options. Offering attractive interest rates, tax benefits under Section 80C, and quarterly interest payouts, SCSS is an ideal option for senior citizens seeking a steady income post-retirement. The scheme has a tenure of 5 years, extendable by an additional 3 years once it matures.

  Each plan serves different financial needs and risk profiles, from high-growth potential investments like mutual funds and ULIPs to secure, government-backed options like PPF and SCSS, ensuring a suitable savings plan for every investor.

Why You Should Buy Savings Plan?

One fact that every salaried and self-employed earner of the family should understand, onemight not be able to achieve their financial goals only through regular savings. Whether you want to save for your children's higher education or your early retirement, you need to invest your savings in the best tax saving investment plans, to reap better future results.

Although you lose some of your income to savings plans, disciplined savings may help you gain good returns in the future.

Here's why you should invest in savings plans.

1. Financial security
   Being an essential life insurance product, investment plans help you ensure your family's financial security even when you are not around. Along with the lumpsum or regular payouts you receive from the savings plan, the coverage it offers will help you financially protect your family in a more comprehensive way.
2. Financial discipline
   Knowing and understanding the need and benefits of savings is one thing and inculcating a habit of regular savings is another. That's where investment plans prove useful. By investing regularly into these plans helps you form a money discipline in your life and invest your savings today for a better tomorrow.
3. Tax savings
   As savings plans are essentially a life insurance product, they offer the same tax benefits* as any other life insurance product. As per section 80 C of the Income Tax Act, you can avail of tax exemption on up to Rs 1.5 lakhs of premiums paid towards these tax saving schemes.

Additional Read- Tips to help you plan your Income Tax

Why Choose Aviva Savings and Investment Plans?

• Investment plans as special as your needs
  We believe that every person is different, so are their financial needs. Thus, we provide a range of comprehensive investment plans that fulfill your investment and risk appetite as well as financial goals.
• Transparency and flexibility
  Because investment plans are more than an asset to make more money, it directly affects your loved ones' future.
  Thus, maintaining transparency and flexibility during the process of buying savings plans is essential for us.
• Simplified savings for life
  Best investment plans bring the utmost relief and financial security during the tough times in your loved ones' lives. So why should the process of bringing this happiness be any more tedious?

At Aviva India, we offer simplified processes and documentation through our online investment plans. So you can ensure your family's financial security without any hassle.

Additional Read-Your Ultimate Guide to Smarter Investing

Who Should Buy Savings Plan?

This depends on your life stage, income level as well as the financial goals you want to achieve. The savings investment plan is a versatile life insurance product, and one can choose it for various financial purposes.

• Life stages
  Whether you have just joined your first job, have started a family, or are years away from retiring, you can begin investing in savings investment plans at different stages of your life.
• Income levels
  Investment plans are available for people with different investment appetites. Moreover, whichever plan you choose, your financial goal, investment tenure will decide the premium towards the investment scheme. Thus, you don't need to earn more to afford a savings investment plan.
• Financial goals
  You can start investing in different savings plans to achieve your financial goals, such as buying a car or house, your child's higher education, or your retirement.

Key Features of a Savings Investment Plan

• Life cover with benefits of riders
  The right savings investment plan can help you secure your family financially even when you are not around. The various riders help you customize your savings plan according to your needs.
  Benefits of different riders such as accidental death, critical illness, and waiver of premium will help you provide for your family with more comprehensive policy benefits.
• Tax benefits
  As savings plans are life insurance products, you can get tax exemption of up to Rs 1.5 lakhs on premiums paid towards your savings plan under section 80C of the Income Tax Act.
• Flexibility of investment
  Investment plans offer a wide range of entry age and policy tenure to meet your different financial goals throughout your life.
  You can start investing as early as at the age of 18 and choose the policy tenure according to your financial goal and the money and time you need to build enough wealth.

Benefits of Savings Plan

Here are the benefits of savings plan in India:

• Long-term wealth creation
• Financial Protection to your loved ones in case of your untimely demise
• Regular payouts to fulfill your financial goals
• Tax savings benefits with lifetime financial protection through regular payouts

Additional Read: Smart Saving Tips

Importance of Buying a Best Savings Plan in India

Selecting the best savings plan in India is crucial for securing financial stability and achieving long-term financial goals. Here’s why it’s important to choose the right money-saving plan:

• Financial Security: A robust savings plan provides a safety net against unforeseen expenses, such as medical emergencies or sudden income loss, ensuring financial security for you and your family.
• Wealth Accumulation: Investing in the right savings plan helps accumulate wealth over time, aiding in major life goals like buying a home, funding education, or ensuring a comfortable retirement.
• Tax Benefits: Many savings plans offer attractive tax benefits, significantly reducing taxable income. Schemes like PPF, ELSS, and ULIPs offer tax deductions under various sections of the Income Tax Act, making them an efficient tax-saving tool.
• Encourages Discipline: Regular contributions to a savings plan instil financial discipline, crucial for long-term wealth creation and management.
• Retirement Planning: A good savings plan is essential for retirement planning, providing a steady source of income post-retirement when regular earnings cease.
• Higher Returns: Compared to traditional savings options like savings accounts, structured savings plans often offer higher returns, maximizing your financial growth potential.

Choosing the best saving scheme helps meet your financial objectives and provides peace of mind, knowing that you are prepared for the future.

Also Read: Best Short Investment Options in India in 2025

How to Select the Best Saving Plan?

Finding the right savings plan is crucial for managing your finances and achieving your long-term goals. Here's how to choose the best saving scheme that aligns with your financial aspirations:

• Identify Financial Goals: Define what you are saving for—retirement, education, property, or an emergency fund. Your goals will influence the type of savings plan suitable for you.
• Explore Different Plans: Research various options, such as Public Provident Funds (PPF), mutual funds, fixed deposits, and Unit-Linked Insurance Plans (ULIPs). Understand their unique features, benefits, and suitability for different financial needs.
• Evaluate Risk Tolerance: Assess your risk appetite. Opt for low-risk options like PPF or fixed deposits if you prefer stability or consider higher-risk options like mutual funds or ULIPs for potentially higher returns.
• Consider Liquidity Needs: Determine your need for quick access to funds. Some savings plans offer better liquidity than others, which is crucial if you anticipate needing to access your funds early.
• Look for Tax Benefits: Select plans that offer tax advantages. Investments like ELSS mutual funds and PPF can provide tax relief under Section 80C, enhancing your savings.
• Use Comparison Tools: Leverage online comparison tools to evaluate the pros and cons of different savings plans based on features, performance, and fees.
• Consult a Financial Advisor: If you find the selection process overwhelming, a financial advisor can provide personalized advice and help you make informed decisions based on your financial situation.

By thoroughly researching and comparing your options, you can find a savings plan that best suits your financial needs and helps you build a secure future.

Factors to Consider Before Investing in a Best Savings Scheme

Before investing in a savings scheme, it’s important to evaluate various aspects to ensure it aligns with your financial goals. Here are essential considerations for choosing the best monthly saving scheme or money-saving plan:

• Financial Goals: Clearly define what you are saving for—retirement, education, property, or emergencies. This will direct the type of savings plan suitable for your needs.
• Investment Horizon: Align the duration of your investment with your financial objectives. Longer investments can handle more volatility for potentially higher returns.
• Risk Tolerance: Determine your comfort level with risk versus potential returns. More risk might mean higher possible gains.
• Liquidity Needs: Assess how quickly you need to access your funds. Some savings plans offer more withdrawal flexibility than others.
• Tax Implications: Opt for plans offering tax benefits, which can enhance the effective returns on your investment.
• Inflation Protection: Choose an investment that offers returns exceeding the inflation rate to preserve the real value of your money.
• Provider’s Reputation: Trust is crucial, so select a well-regarded institution. Check their performance and user reviews.
• Fees: Be aware of any costs associated with the plan, as they can impact your overall returns.

Considering these factors will help you navigate the options and select a savings plan that efficiently supports your financial strategy and growth.

Also Read: Tips To Grow Your Savings Without Sacrificing on Fun

Guide to Comparing Saving Plans in India

When choosing saving plans in India, it's essential to compare options carefully to find the best monthly saving scheme for your financial goals. Follow these steps to make an informed decision:

• Define Savings Goals: Clearly outline your financial objectives for short-term emergencies or long-term investments like retirement.
• Assess Risk Tolerance:Evaluate your comfort with risk. Higher-risk plans may offer better returns but require more market understanding.
• Examine Returns: Investigate different savings plans' historical performance and expected returns.
• Read Terms and Conditions: Pay attention to details about withdrawals, loans, and penalties to avoid plans with restrictive terms.
• Check Tax Benefits: Consider the tax advantages under sections such as 80C, which can significantly impact net returns.
• Assess Flexibility and Liquidity: Some plans offer greater ease of access to funds than others, which is important if you anticipate needing funds unexpectedly.
• Review fees: Understand all associated costs, as high fees can affect your returns over time.
• Research Provider Reputation: Choose a reputable institution with positive customer feedback to ensure reliability and service quality.

By methodically comparing these aspects, you can select a saving plan that best suits your financial needs and offers optimal returns, security, and flexibility.

Documents Required to Buy a Savings Plan

When applying for a savings plan or selecting the best savings scheme, you must provide several key documents to verify your identity, address, and financial status. Here’s a streamlined guide to what you will need:

• Proof of Identity:Valid government-issued IDs, such as an Aadhar Card, PAN Card, Passport, or Driving License, are necessary for identity verification and KYC compliance.
• Proof of Address: Documents like recent utility bills, bank statements, Aadhar Card, or Passport confirm your residential address. Ensure these are dated within the last three months.
• Proof of Income: To assess financial stability, provide income tax returns, recent pay slips, or bank statements. These are crucial for plans with investment components.
• Photographs: Passport-sized photographs may be required for the application.
• Age Proof: Documents like a birth certificate, SSLC certificate, or Passport are used to verify your age, impacting premium calculations.
• Bank Details: Please provide your bank account details and a cancelled cheque to set up automatic premium payments or receive plan benefits.

Collecting and preparing these documents beforehand will facilitate a smoother application process and ensure that your enrolment into the chosen savings plan is efficient and hassle-free.