How to make savings work for you?

The most significant difference between a wealthy person and not so wealthy person is that he earns interest while other people pay interest. Money is a very important tool that helps you in achieving your goals. You should free yourself from bad financial habits and start to lead a life where finances are well-sorted and managed. The most important thing that you should do so that you can gain financial independence is budgeting. You should control where each penny of your savings is going. This is the first step towards your financial goals. 

Making a good investment plan which includes mutual fund investment and fixed deposits to multiply your money. Most investors want to make investment plans in such a way so as to get sky-high returns in a very short duration. Investors always keep on looking for the investment plans that bring the returns in just a few months or years without any associated risk. However, in reality, investment products with high return and low risk do not exist. Usually, the higher the returns, the more are the risk. Here are the top investment plans where you can multiply your savings:

• Fixed deposits:

Bank fixed deposits is one of the most popular choices of Indians who like to increase their savings. A person can opt for a monthly, yearly or half-yearly interest option through an FD account. The interest rate is added to the deposited amount and is taxed as per the income slab. 

• Senior citizen’s saving scheme:

It is the best plan for retirees. Senior citizen’s saving scheme is a must to have in their investment portfolios. The scheme is only for senior citizens. The senior citizen saving scheme can be availed by any post office and bank by a person above 60 years of age. The scheme has a tenure of five years which can further be extended by three years. Currently, the interest rate offered is 8.3 percent per annum which is payable quarterly. The upper limit of investment is 15 lakh and one is allowed to open multiple accounts too. 

• Mutual fund investment:

Mutual fund has many benefits. It is simple and easy to understand. It doesn’t require any kind of understanding of economics. Mutual funds can invest in bonds, cash, stocks, and other areas of security. 

A right investment strategy can take you a long way when it comes to earning money. With caution and good knowledge, you can also make money like many other successful investors.