Savings and Investments

A savings account is a basic account that keeps customers' money safe and helps them grow their savings moderately.

From fixed income instruments like fixed deposits (FDs) and recurring deposits (RDs) as well as mutual funds - there are options galore which can help one in increasing wealth.

NPS is a defined contribution pension system introduced by the Government of India as a part of pension sector reforms, said SBI.

The interest rates offered on company fixed deposits are higher than those on bank fixed deposits.

Senior Citizen Savings Scheme (SCSS) offers an interest rate of 8.7 per cent per annum, payable from the date of deposit of March 31/ September 30 / December 31 in the first instance and thereafter, interest shall be payable on March 31, June 30, September 30 and December 31, according to India Post's website.

A Public Provident Fund (PPF) account is considered among the most sought after investment products by financial advisors. Offered by various institutions including India Post and commercial lenders such as State Bank of India (SBI), PPF is a retirement planning-focused investment instrument that helps individuals save from a long-term perspective. A Public Provident Fund account can be set up against an investment of Rs 500, up to Rs 1.5 lakh in a financial year.

EPF Vs PPF: While, EPF is a compulsory retirement saving option, PPF is invested by citizens and is optional.

Systematic Investment Plan, commonly referred to as an SIP, allows investors to park a certain sum of money periodically in a mutual fund (MF) for a specific period. Mutual funds are operated by professional fund managers, who allocate the fund's investments and attempt to produce capital gains for investors. According to financial analysts, SIP is one of the most sought-after methods of investing in mutual funds (MFs) as it offers better risk-adjusted returns. A fixed amount is deducted from investors' account and invested into a specific mutual fund scheme.

Monthly average balance or MAB of an SBI savings bank account is the average of daily balances in the account in a month.

FDs require investors to make a lump-sum investment for a pre-specified tenure and enable them to earn a fixed interest rate until that given period.

Investment Tips For Beginners: One of the basic rules of investing is to start early so that time works in favour, experts suggest.

EPFO Online Nomination: To avail EPFO's e-nomination facility, subscribers must have an active UAN. Also, Aadhaar details should have been seeded to subscribers' EPF account.

A post office savings account can be opened by cash only. The minimum amount for opening of a savings account with post office is Rs 20.

Some fixed deposits (FDs) come with a premature withdrawal facility while some require a compulsory lock-in period.

Online PF withdrawal process: EPF is a mandatory contribution that every company, which has more than 20 employees, has to deduct from the salary of its employees.