Written by : Knowledge Centre Team
2026-07-24
1094 Views
7 minutes read
Share
Saving money, or ‘saving habit’ - as Napoleon Hill put in 70 years ago in his book "Think and Grow Rich" - is the keystone of all financial success. Saving money is what delivers the means for you to take advantage of situations -- whether it is starting a new business, going back to college, or buying shares of stock when the market crashes.
When should you Start Saving for your Goals?
While there is no lower age limit to start saving money, a young age is the best time to start saving money. Nevertheless, most people of the younger generation are fond of spending money, but a little saving can take you places in life. A lot of people believe that saving up for the future means living a frugal life. However, this isn’t entirely true, as you can also spare some room for entertainment in your budget.
- If you start saving money at an early age, it assures you of a secure old age. At a young age, people do not have many expenses. But with time, responsibilities increase, and so do the expenses. Thus, it is a better plan to save money at a young age.
- If you start saving money at mid-age or when you are nearing retirement, then you will have to work hard and save more as you do not have much time. So, saving at an early age gives you the scope to save less and the flexibility to manage other expenses.
- It is a well-known fact that a practise we start at a young age will last almost our whole life. Thus, one who starts saving money at an early age will not stop it, and this practise will help you save money and secure your life financially.
- Saving money prevents you from borrowing. The money you saved goes to aid during emergencies, children’s education, house requirements, etc. So, instead of opting for loans or financial credit for support, you can use your saved money and lead a debt-free life.
- One expects to spend their time relaxing leisurely after retirement. So, starting to save money at an early age allows you to save a lot of money for retirement and lead a relaxed and secure life after retiring.
- Nowadays, switching jobs has become very common. So, if you ever encounter a situation where you have to quit your job or live without a job for a few months, if you have saved money, it will make it easy for you to live without a salary in this gap.
What is a Savings Plan? | Canara HSBC Life
What are Some of the Savings Plan to Consider?
You can buy life insurance cum savings plan or choose to use different saving schemes to boost your financial fitness. Listed below are a few saving schemes that you may consider to include in your financial planning:
1. Fixed Deposit
Purpose: saving
Interest: 5.5% - 7.5%, guaranteed returns
Minimum Investment: Varies from bank to bank
Maximum Investment: No limit
For a long time now, fixed deposits have been one of the popular savings option. They are bank-based investment products and closely monitored by RBI, assuring safety. They are low-risk investments. You can invest at a particular time and acquire a fixed interest rate with a five-year lock-in period.
Fixed deposits offer a higher interest rate than savings bank accounts and allow only a one-time lump sum deposit. Under section 80C of the income tax act, investments up to INR 1,50,000 are eligible for tax redemption.
2. Recurring Deposit
Purpose: Regular Savings
Interest: 4.5% - 6.5%, guaranteed returns
Minimum Investment: INR 500
Maximum Investment: INR 1 Lakh per month
A recurring deposit is a tenure deposit offered by banks. RDs allow investors to deposit money regularly and avail returns upon maturity. With RDs, investors get to choose their term period, the amount they wish to deposit, and the number of deposits. Their savings plan period varies from 7 days to 10 years.
Premature withdrawals are allowed with a penalty and can be used as loan collateral. They also offer better interest rates to senior citizens, but do not allow you to change your monthly investment amount.
3. Public Provident Fund (PPF)
Purpose: Retirement
Interest: 7.10% (April - June 2020), guaranteed returns
Minimum Investment: INR 500
Maximum Investment: INR 1,50,000
PPF, one of the most popular savings plans, is a post office savings scheme and is backed by the government. You cannot have multiple accounts, and returns from PPFs are completely tax exempted. They allow you to pay investments in a single deposit or up to 12 deposits per financial year.
PPF gives you a lock-in period of 15 years and is easily transferable from one bank or post office to another. Any Indian citizen can obtain the benefits of this savings plan. Nevertheless, HUFs and NRIs are not eligible.
4. Liquid Mutual Funds
Purpose: Short term savings
Interest: 6.5% - 7.5%(Historical returns)
Minimum Investment: INR 500
Maximum Investment: No limit
Liquid mutual funds invest in short-term market instruments such as treasury bills, government securities, and call money. They invest in low-risk securities that have maturity up to 91 days. Liquid mutual funds are alternative to FDs and savings accounts in which you can invest surplus money for a short time.
In liquid funds, short term capital gains are added to investor’s taxable income, and long term capital gains are subjected to 20% tax with indexation benefits.
5. Equity Linked Savings Scheme (ELSS)
Purpose: Wealth creation through equity
Returns: Market linked (12 -15% historical returns)
Minimum Investment: INR 500
Maximum Investment: No limit, but can save tax only INR 1.5 Lakhs investment per financial year.
Indian citizens (including Non-Resident Indians) can invest in ELSS funds. ELSS are equity mutual funds that invest over market capitalization and sectors and have a lock-in period of 3 years.
You can invest in these funds even after a 3-year lock-in without the need to withdraw your investments. You will be charged an expense ratio on the NAV of the fund, and no premature withdrawals are allowed.
6. Equity Mutual
Purpose: Long term wealth creation
Interest/Growth Rate: 12% - 15% (Historical returns)
Minimum Investment: Lump sum INR 500 - INR 5000; SIP INR 500
Maximum Investment: No limit
Equity funds invest in stocks/equities, and each fund has to invest based on the investment objective. You can link your investments to a goal and invest towards it, and the returns are taxed based on the holding period. In this scheme, short-term capital gains are taxed at 15%, and long-term capital gains are taxed at 10 % and come with exit loads.
These funds are best suited for long-term goal-based investing as they offer significant returns only when invested for the long-term.
You should start saving at an early age to accelerate your wealth building game. Choose a saving plan or scheme after assessing your financial needs and goals. Explore all the available options, weigh their pros and cons before finalizing on any of the plan. Understanding your needs will help you to find the right type of savings plan and will benefit you in the long run.
Build Guaranteed Savings for Your Future Goals
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy No.
Address of the Policyholder as per records
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
Recent Blogs
Top Investments with Guaranteed Returns in India in 2026
30 July '26
1989 Views
8 minute read
Discover top investment options in India with guaranteed returns. Secure your financial future with reliable plans from Canara HSBC Life Insurance. Explore now!
Read More
Saving Plan
All You Need to Know About Voluntary Provident Fund (VPF)
30 July '26
4249 Views
9 minute read
Learn what a Voluntary Provident Fund (VPF) is, how it works, its benefits, tax advantages and why it’s a smart savings tool for future security.
Read More
Saving Plan
How Should Beginners Start Savings and Investment Planning?
30 July '26
1104 Views
8 minute read
Learn how beginners can start saving and investing, understand basic plan types, goal setting, risk awareness, time horizon, and building disciplined financial habits.
Read More
Saving Plan
Why Do You Need Savings and Investment Plans in India?
29 July '26
1181 Views
11 minute read
Saving and Investment Plans help you plan your future expenses if you use your wealth. Learn why it's important, how they help achieve financial goals, build wealth, manage emergencies, and ensure long-term financial security.
Read More
Saving Plan
How to Choose the Right Long-Term Savings Plan?
29 July '26
884 Views
Compare key features, returns, flexibility, and risk factors to choose a long-term savings plan that matches your financial goals.
Read More
Saving Plan
What Do Savings Plans Cover and Exclude? Complete Guide
29 July '26
1040 Views
10 minute read
Learn what savings plans typically cover, key exclusions, and important factors to consider before choosing a plan for your financial goals.
Read More
Saving Plan
How to Save Money While Enjoying Life? Practical Tips
29 July '26
2129 Views
7 minute read
Learn smart saving habits and investment strategies that help you achieve financial goals without compromising lifestyle choices.
Read More
Saving Plan
EPF Guide: Meaning, Contribution Rules, Interest Rate & Withdrawal
28 July '26
1544 Views
7 minute read
Learn everything about Employees’ Provident Fund including EPF schemes, interest rates, benefits and features to start saving for a secured future.
Read More
Saving Plan
How Is Guaranteed Maturity Benefit Calculated?
28 July '26
11359 Views
6 minute read
Life insurance policies come offer maturity benefits that makes your investment worthwhile. Know how guaranteed maturity benefits in a life insurance plan is calculated.
Read More
Saving Plan
Savings and Investment Plans from Canara HSBC Life Insurance
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
Fixed Returns, Zero Risks & Worries
iSelect Guaranteed Future Plus
- 4 Plan Options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Save, Dream, Plan. Live Peacefully
iSelect Guaranteed Future Plan
- 4 plan options
- Guaranteed Maturity Benefit
- Premium Protection Cover
- Tax Benefits
Popular Searches
- Senior Citizen Saving Scheme
- Post Office Savings Scheme
- What is Sum Assured?
- Money Saving Tips
- Saving Plans for Child
- Endowment Policy
- iSelect Guaranteed Future Plus Plan
- National Savings Certificate
- Tax Saving Plans
- Senior Citizen Savings Scheme Calculator
- NPS and PPF
- Savings & Investment Plans
- Saving Schemes
- Save Money For Salaried Professionals
- One time Investment Plan for Child
- Investment Options for an NRI
- All About PPF
- Sum Assured
- Policy Surrender Value
- Guaranteed Savings Plan