TomorrowMakers ™

10 things you can do with your savings

31 May 2017
Have a lot of savings but don’t know what to with them? Read on to find out some ways in which you can help your savings grow.

In words of John Jacob Astor, yesteryear’s famous American businessman, trader and investor, “Wealth is largely the result of habit.”  


If you cultivate the habit of saving and then investing/parking that saved money wisely, then no demonetisation drive can affect your money and the results can be highly profitable in the future. The question is how to do so? Wellhere we tell you about ten things that you can do with your savings. 


  1. Buy stocks/shares of companies: 

  • Stocks or equity are shares that are issued by companies and are bought by the general public.  

  • If you are willing to invest in a medium to long term tenure of five to ten years, then you could invest in stocks, as the returns here are generally higher than other financial instruments. 

  • Particularly, investment in direct stocks can give you high returns. 


  1. Invest in bonds: 

  • bond is typically a loan that you give to the government or an institution in exchange for a pre-set interest rate paid to you regularly for a specified term.  

  • The bond pays interest till it is active but expires on a specific date and then, the total face value of the bond is paid to you.  

  • There are many good bonds like government bonds which generally provide a high rate of return on investments 




  1. Invest in mutual funds with lump sum 

  • You can choose between short term or long term debt mutual funds, which offer good returns overtime 

  • Equity mutual funds (short and long term) are also suitable options if you want something more tax efficient. However, they also include a slightly higher risk  

  • You also have the option to use Systematic Transfer Plan (STP) to direct money from your debt mutual fund into an equity mutual fund, thus reducing risk to your investment. 


  1. Look for IPOs: 

  • Initial Public Offerings (IPOs) can be a very good investment option for your savings, if launched by a reputed company. 

  • They can provide you with an opportunity for picking up shares at relatively low prices.? 


  1. Opt for bank FDs:  

  • Bank Fixed Deposits (FDs) are one of the oldest and safest ways to save money.  

  • In case of a bank FD, a fixed amount of money is kept aside with a financial institution for a fixed number of days or months or years. In turn, interest is earned on this money. 

  • The rate of interest differs with the deposit tenure and also with the banking entity; however, it generally ranges from 6.6 to 7.5 per cent, 

  1. Opt for company FDs: 

  • If you are willing to take a risk and want to invest money for short to medium term of one to five years, you can invest in the high return company FD schemes too. 

  • There are several company FD schemes where you can get a yield of as high as 12 per cent. 

  1. Invest in small saving schemes: 

  • Some of the most common small savings schemes are Sukanya Samriddhi Scheme, Employees Provident Fund (EPF), National Pension Scheme (NPS), Kisan Vikas Patra, Personal Provident Fund (PPF) etc.  

  • PPF, NPS and EPF are the most popular of all as the interest income is not taxable with these.  

  1. Invest in Post Office Saving Scheme: 

  • This scheme offers fixed return per month for five years. 

  • Currently, this scheme offers 7.6 per cent return per annum. 


  1. ?Buy ULIPs:  


  • Unit-linked Insurance Plan (ULIP) is a hybrid life insurance product, which provides risk cover for the policy holder along with investment options under a single integrated?plan. 

  • You can channel your savings into various market-linked assets for meeting long-term goals which could be your children’s education or marriage.  

  • You have various investment options under ULIP and can invest in any qualified investments such as stocks, bonds or mutual funds. 

  • In the long term, ULIPs offer high returns, and these returns are tax free as well.  

  1. Invest in gold: 

  • Since the value of gold increases quickly, you can invest in gold too.  



So, what are you waiting for? Don’t let your savings lie idle in an account until you need it. Park it safely by investing it at a good financial instrument, and you could earn a lot more. 



Disclaimer: This article is intended for general information purposes only and should not be construed as investment, insurance, tax or legal advice. You are encouraged to separately obtain independent advice when making decisions in these areas.

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