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3 Benefits of Saving instruments

3 Benefits of Saving instruments

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Certain things are certain in life-death, bills, and TAX.

While the tax has become an inevitable part of our life, there are ways in which we can save it and create a financial corpus for ourselves. One of them is via the saving instruments.

Saving instruments such as savings account, mutual funds and fixed deposit come with certain benefits that invariable saves us from paying huge tax and save some money for a rainy day.

If you are starting in the savings world or are already a holding a savings account or have invested in mutual funds or are regular with your fixed deposit, this article is for you. Below we list down three main benefits of having a savings instruments.

Tax saving:

Undoubtedly one of the primary reason why most salaried and non-salaried opt for a savings account or a mutual fund or a fixed deposit. When you park your money in any of these instruments, then, under Section 80C, a certain percent of the tax is waivered. The percentage changes for each financial instrument so, it is advised that you pick a financial tool that is best suited for your income and the kind of corpus you wish to create.

Creates a financial corpus:

It’s no secret that even if we want to, we cannot save as many finances that will meet our individual goals and aims in life. Thus, it is essential to opt for a savings instrument that will give you both – tax security and helps you create a financial corpus. Saving instruments such as savings account, mutual funds and fixed deposits, increase your finances by giving you a specific amount of interest rate on the actual amount invested or parked. Thus, improving your finances.

Liquidity and flexibility:

Another essential feature of the instrument of the savings is that it makes cash readily available for emergencies. The high liquidity possibility makes these saving instruments the best option to park your finances. Also, you can re-park or re-invest the remaining amount again without losing on the interest rate.

With these three benefits in sight, saving instruments are certainly a way to create more corpus base and increase your savings.