A large population has started investing in small saving schemes. Moreover, with inflation and the coronavirus pandemic, financial security has become imperative. One of the crucial investment plans is small saving schemes(SSS) that the Government of India has initiated through various post offices, public sector banks and a selected private bank agent.
Why is Investing in a Small Saving Scheme (SSS) essential ?
Small savings schemes (SSS) are a set of saving instruments launched by the government of India. They include instruments such as Senior Citizens Saving Fund, Public Provident Fund (PPF), Sukanya Samridhi Yojana, etc., are among the best saving plans one can invest for the financial security of their loved ones. They are necessary for social support and help channelize funds to the Government to help them finance their expenditure. Moreover, another reason Small Saving Funds are one of the best saving plans is that it provides a good and adequate amount of return to the investor with a bare minimum involvement of risk.
Moreover, the premiums paid by the investor for a small saving scheme are eligible for tax saving benefits under Section 80C of the Income tax Act. However, tax laws are subject to change from time to time. Moreover, having invested in a small social scheme gives you both financial independence and financial security in the future for you and your family. It also helps your loved ones achieve their dreams without any worry at affordable premium rates.
Let us now see a few more reasons as to why Small Saving Schemes (SSS) are one of the Best Saving Plans for an investor and why they are imperative and crucial for your personal finance.
Why Small Saving Schemes are a Best Saving Plans and are Crucial for Your Personal Finance.
1.Provision of Tax Benefits
One of the reasons why small saving scheme investment plan is considered as one of the best saving plans is the fact that the premiums paid for fixed income provision schemes for SSS such as Public Provident Fund (PPF), Seniors Citizens saving Fund, etc are eligible for tax saving benefits under Section 80C of the Income Tax Act. However, these tax laws are subject to change from time to time.
2.Provision of Easy Investment and Withdrawal
Another reason why the small saving scheme investment (SSS) plan is considered one of the best saving plans is that it provides easy investment and withdrawal procedures without causing any inconvenience to the investor. Moreover, various public sector banks have made the procedure of buying small scheme services online. As a result, people can invest in SSS in the comfort of their homes. However, please note that not all the schemes provide the option of easy withdrawal. Some of the schemes have the provision of a lock-in period.
3.High Returns with Low Premium Rates
In comparison with investment plans of the private sector, the Government initiated small saving schemes that provide relatively high returns with affordable and pocket-friendly premium rates, making them some of the best saving plans. This feature especially makes it an ideal investment plan for people who have low incomes.
4.Ideal Plan for Senior Citizens
The Small Saving Scheme is one of the best saving plans and is ideal and profitable for senior citizens. In the case of senior citizens, small saving schemes offer a substantial interest. As a result, this plan offers a regular, safe and steady income to senior citizens with tax benefits.
The Government initiated Small Saving Schemes are some of the best saving plans that one can invest in. With all the points mentioned above, it can be concluded that various advantages come along with Small saving Schemes. You can easily invest in one of the schemes in accordance with your needs and priorities.