Five Tips for Smart Savings
Savings are required to overcome the hazards of financial crisis that you might experience anytime in future. In order to save, the financial market has presented us with numerous avenues. From a simple savings account to the sophisticated equities, there are different ways to invest your funds in order to reach admirable returns over the investments.
To make the best of your savings, we have shared these expert tips for getting attractive returns:
1> Set a Savings Goal
You should be aware of your savings goal before you decide to save a fixed amount of money in any of the financial instruments available in the market. Decide on how much you want your investments to grow? How much money you can afford to save each month? When will you require the money? And how much investment risk you are planning to bear?
2> Choose the savings instrument
In order to gain best returns over the investment, it is necessary to choose the investment instrument wisely. Opting for savings account online will lend you fixed returns over a period of time as against mutual funds and equity instruments that offer variable returns over a period of time.
3> Maintain liquidity
What is the use of savings if they are not available as and when required? To maintain the liquidity of the invested savings, it is recommended to maintain online savings account. This account will offer substantial returns along with quick liquidity to withdraw cash when required.
4> Know the norms of Taxation
Income tax is applicable to all savings instruments, be it fixed deposits, debt instruments, or equities. Know the rules of taxation and the concession you will be able to avail on the payable tax, before opting for any kind of instrument.
5> Shop around
To get the best return rates on investment, it is recommended to shop around. Compare the return rates, tenure, processing fees, taxation norms, etc. before choosing a savings instrument.