Small Savings - Worth to have a look at them

It might seem ridiculous to talk about safe investments and sound returns at a time when the equity markets are down 34 percent since last year and a tumbline real estate market is giving most of us sleepless nights, but here are 3 tricks to increase your small savings returns without much worry

We need to balance our portfolio with equity and debt since the reality of volatile markets indicates that we need to go back to old options and invest in products that our parents relied on, the ones we turned our noses up at as too cumbersome or even too boring. But beside secure returns the sfest investment options can be cleverly tailored to suit various requirements. Here are some strategies that have been used for ages and can work wonders in these harsh times

REINVEST MONTHLY INCOME SCHEME (MIS) INTEREST

Take a 6-year, 8 percent per annum MIS, Reinvest the monthly interest in a savings account (3.5 per cent interest per annum), which will give you an annualised return of 7.53 percent after six years. Reinvesting in a recurring deposit (7.5 per cent per annum) will give you an annualised return of 7.76 per cent

LADDER NATIONAL SAVINGS CERTIFICATES (NSCs)

NSC is a 6-year instrument, Assume that you buy NSCs worth Rs 24,000 in one financial year, Instead buy NSCs worth Rs 2000 every month till your retirement, Renew every investment after six years and continue doing so until your retirement, Finally the matured NSCs will give regular income, which can be used as pension

USE YOUR PUBLIC PROVIDENT FUND

PPF is a 15-year account in which you can put up to Rs 70000 every year, After the fifth year, make partial withdrawals for tax free funds and contribute Rs 70000 as before from current income to get tax benefits