Little drops of water make the mighty ocean. Similarly, saving little by little helps you build wealth over time. A regular savings account is an excellent place to get started. However, as your income increases, exploring other investment avenues can give you better returns on your savings. 31st October is observed as World Savings Day or International Savings Day. However, in India, since Indira Gandhi’s death on October 31, 1984, World Savings Day is observed on October 30. This World Savings Day, let’s explore saving schemes that can help you build wealth.

The World Society of Savings Banks established World Savings Day on 31st October 1934. The day promotes the importance of savings. While the importance of savings is prevalent now, this was not the case in the early 1900s. For instance, many people lost their hard-earned money to the German monetary reform of 1923. World Savings Day was launched to restore people’s faith in savings and is now observed worldwide.

Listed below are several savings plans offered by the Indian government in partnership with banks.

Fixed deposits (FD) and recurring deposits (RD) are bank and post office offerings where you can deposit a fixed amount for a fixed period. The maximum investment tenure is ten years. Post offices allow you to open RD with a minimum monthly investment of just Rs 100.

Offered by the post office, you can start saving with just Rs 1000 and earn 6.8% interest. The maximum investment tenure is five years. You can save even more as NSC deposits are eligible for tax deduction under Section 80C of the Income Tax Act, 1961.

You can open a PPF account with bank and post offices. You can save up to Rs 1.5 Lakh per annum under Section 80C and enjoy attractive interest rates – higher than those offered on FDs. The investment duration for this savings scheme is 15 years, and the deposits, interest earned, and maturity amount are entirely tax-free.

The NPS scheme is a good saving plan for retirement and is akin to a pension account. NPS also falls under Section 80C allowing annual deposits up to Rs. 150,000, plus another Rs. 50,000 under Section 80CCD(1B).

The government launched the SSY scheme to encourage parents/guardians to save money for their daughters’/wards’ higher education and marriage. While parents can deposit money, the girl child alone is allowed to withdraw it, that too, after the age of 18 years.

Your savings can help you face financial challenges in the future. Investing in different savings plans also allows you to build your wealth. Similarly, you should invest in insurance to ensure your savings are safeguarded. The sum insured offered by insurance companies can provide financial security from losses due to unforeseen circumstances. For instance, a health insurance policy covers treatment costs associated with several diseases, bike /car insurance covers third-party liabilities, and cyber insurance covers losses arising from cybercrimes.

This World Savings Day, examine your savings plan for the future. Remember to secure your savings by investing in the necessary general insurance plans.