What are the different types of long-term savings accounts?
Curious about long-term savings
In India, there are several types of longterm savings accounts available, including:
1. Public Provident Fund (PPF): A governmentbacked savings scheme that allows individuals to save for their longterm financial goals while earning a fixed interest rate.
2. National Pension System (NPS): A retirement savings scheme that helps individuals build a retirement corpus through regular contributions, with the added benefit of tax savings.
3. EquityLinked Saving Scheme (ELSS): A taxsaving mutual fund that invests primarily in equities and offers potential longterm returns.
4. Fixed Deposits (FDs): A lowrisk savings option that provides fixed interest rates for a specified period, ranging from a few months to several years.
5. UnitLinked Insurance Plans (ULIPs): A longterm investment option that provides both insurance coverage and the opportunity to invest in equity and debt funds.
6. Sukanya Samriddhi Yojana (SSY): A governmentbacked savings scheme designed for the benefit of the girl child that provides a fixed interest rate and tax benefits.
7. Senior Citizen Savings Scheme (SCSS): A savings scheme specifically designed for senior citizens that offers a fixed interest rate and tax benefits.
It's important to do your research and compare the features, benefits, and risks of each type of longterm savings account before deciding which one is best for you.
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