It is the tax saving time. The time has come when people are locking their investments to save tax. Sachin Karpe, who used to be a financial advisor once, will give enlighten on some investment tools.
PPF or Public Provident fund: This is one of the most secured forms of investment tools. With an annual interest of 8.7% which in non-taxable, the money saving caliber increases. Qualified for tax saving under section 80c, this tool is safe and popular. One could save upto 1 lakh in a year. One can withdraw money from it only after 15 years.
FD or fixed deposits: Lot of banks now offers fixed deposits at attractive rates. To be able to avail tax benefits, one needs to save for atleast 60 months or five years. Although the interest is taxable, it is healthy tool to meet your short term financial goals. It can also be extended further, observes Sachin Karpe.
Life Insurance: Your and your family’s security is also very important. Life insurance policies not only cover you for life but also offer attractive returns. While buying it, however, the focus must remain on the insurance part and less on investment par, tells Sachin Karpe.