Supercharge your savings
According to an old saying, "A rupee saved is a rupee earned." However, merely saving money is not enough; your money should grow to meet your future needs. Now, you would be thinking - how to double your money? But remember, the key to achieving this lies in investments. By investing your savings intelligently, you can get your hands on the best monthly saving scheme to multiply your wealth while continuing to save diligently.
One unique method to supercharge your savings is by opening a Kotak811 Digital Bank Savings Account. With no minimum balance requirement and comparatively higher interest on account balance, it offers an excellent opportunity to grow your money. The account also provides a free virtual debit card, making online shopping and transactions seamless. Take advantage of this innovative banking solution to boost your savings effortlessly.
This article will discuss 8 unique methods to supercharge your savings.
Recurring, fixed deposits & company fixed deposits
Company Fixed Deposits, also known as Corporate FDs, are a popular option for risk-averse investors who constantly think about how to grow money and seek higher interest rates than traditional bank FDs. These deposits offer attractive returns but have a more extended lock-in period, making them ideal for long-term investments. To evaluate your investment, use an FD interest calculator to make an informed decision. However, one should know that when saving money, the perennial question arises: Is a Recurring Deposit (RD) a better option than a Fixed Deposit (FD)? While RDs and FDs are safe investment options, they have distinct differences:
- RDs allow individuals with regular incomes to save a fixed monthly amount and earn interest at the same rate as FDs.
- FDs, on the other hand, require a lump sum payment to be made.
Several banks offer Regular Fixed Deposit that provides easy investment with high returns, flexibility, and security, all in one package. They also provide the perfect answer and solution to your queries on how to grow money through savings and investments. These banks offer higher interest rates for senior citizens, making it an attractive option for everyone. Additionally, some schemes allow you to save while also availing tax benefits. If you prefer to invest small amounts each month, banks offer schemes that can be a perfect fit for you. You can start with as little as you can per month, up to a maximum amount.
Kotak811 gives you an opportunity to earn FD-like interest rates on its savings account balance through its ActivMoney feature. You can get up to 7%* interest per annum.
Must Read: Difference Between Mutual Funds & Shares
Mutual Funds And Money Market Funds
Also known as 'liquid funds,' Money Market Funds are short-term, low-risk investments with easily accessible cash equivalent assets and high credit ratings. These are recommended for individuals with a low-risk, low-return appetite and are the perfect options for you if you are thinking about how to grow money without risk. Mutual Funds are wealth creators for any portfolio over the long term. They offer a relatively safe way to invest in the stock market without exposing yourself to the same level of risk as direct equity trading. With low investment costs, professional management, and various products suitable for different risk profiles and investment objectives, Mutual Funds provide the flexibility and potential for impressive returns. The Systematic Investment Plan (SIP) helps you build wealth by investing small amounts at regular intervals, averaging the risks associated with market fluctuations, and providing better long-term returns.
Post office savings schemes and equity linked savings schemes (ELSS)
ELSS is a monthly saving scheme that provides an attractive savings option for two reasons. Firstly, it saves tax, and secondly, it has a short lock-in period. With ELSS, your money multiplies faster than most other investments due to the effect of averaging and the power of compounding. These instruments yield higher returns than bank FDs and have low associated risks. Additionally, they are not subject to Tax Deducted at Source (TDS), making them an attractive option for savers seeking steady growth.
Must Read: 5 Points On How To Be Investment Ready
Unit linked insurance plans (ULIP)
ULIP is a monthly saving scheme that combines investment and insurance, offering flexible products where the equity-to-debt ratio reflects your risk appetite. Many insurance companies provide them with low commissions and charges, making them a cost-effective alternative to Mutual Funds.
Equities or shares
Investing in equities or shares is one of the riskiest forms of investment, requiring an in-depth understanding of the stock market. Some banks offer a secure, modern, hassle-free Demat solution for investors well-versed in the stock market.
With Kotak811, you can Open zero balance account online from the comfort of your home.
Real estate investments, bonds & debentures
Bonds and debentures are fixed-income instruments that offer attractive interest rates and regular income. Government bodies, corporations, or financial institutions issue these instruments. Bonds typically have longer tenures, while debentures offer shorter maturities. These instruments can provide stable returns with lower risk than equity investments.
Investing in real estate is a time-tested avenue for wealth creation. Owning property provides a tangible asset that can appreciate over time, generating potential rental income and offering diversification in your investment portfolio. While real estate investments may require substantial capital and associated maintenance costs, they can be a reliable long-term strategy to grow wealth.
Must Read: 6 Reasons Why You Should Start Investing Early
Systematic investment plan (SIP)
SIP, a great monthly saving scheme, has gained immense popularity among investors seeking to build wealth methodically. Through SIPs, you invest a fixed amount in Mutual Funds at regular intervals, such as monthly or quarterly. This disciplined investment approach allows you to take advantage of rupee cost averaging, where you buy more units when prices are low and fewer units when prices are high. Over time, this strategy helps reduce the impact of short-term volatility on your investment.
Public provident fund (PPF)
PPF is a popular and best monthly saving scheme with long-term savings options backed by the Indian government. It offers attractive interest rates and tax benefits. PPF accounts have a lock-in period of 15 years, and contributions can be made annually or in lump sums. It is a risk-free investment avenue suitable for building a retirement corpus or funding major life events.
Conclusion
Armed with this knowledge about how to grow or double your money, take the time to think, research, understand, and consult with a financial advisor or knowledgeable friend. Evaluating the factors involved in investments is crucial before committing to a suitable instrument. Remember to diversify your savings across multiple products for optimal results.
Popular Searches On Kotak811
Zero Balance Account | Kotak811 Insights | 811 Edge Savings Account | Digital Bank Savings Account | Credit Card Against FD | Apply for Image Debit Card | Kotak811 |
ActivMoney | Savings Account
This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
Share
