Top 7 Features of a Savings Plan For Women

Choosing the right savings plan can be a smart first step towards securing your financial future. Whether you're saving for retirement, your child's education, or simply building a safety net, having a plan that suits your needs makes all the difference. As more women begin managing their finances independently, it becomes important to know which features truly matter in a savings plan. This blog explores some of the key aspects to look for when selecting the right investment option.

Indian women have always been the ones quietly setting aside small amounts for the family’s future needs. They continue to do so even when without a direct income. More often than not, these small savings actas a kitty for emergencies or household expenses,  but rarely for themselves.

Traditionally, men have been the primary earners and investors, but women are quickly taking up that role.. As a result, investment options have also evolved to cater to the needs of today’s women investors.

If you are looking for investment options to safely park your savings and enjoy long-term growth, here’s a two-step process to help you:

• Understand the reasons for investments (define investment objectives)

• List the features you need in the ideal investment option

Two Main Reasons for Investment

For many women, financial planning has often revolved around managing household expenses and saving for the family’s needs. However, it’s just as important to set financial goals for yourself. Whether it’s for independence or reducing tax liabilities, having a clear reason to invest helps you choose the right plan and stay committed.

1. Financial Independence: The most important thing for any adult is financial independence, and now, as women walk hand in hand with men on all fronts, it matters for them as well. It allows you to contribute to the welfare of your family as well as to society directly. With your savings and wealth, you can implement your ideas and lead your life more independently.
   
   You may have certain goals in life, for example, buying a house or sending your child to prestigious colleges, or a career-building hobby. Your investments will also enable you to achieve more financial goals for your child, family, and, more importantly, for yourself.
   
   
2. Retirement Fund: Retirement savings are important for everyone, as it is one stage of life that cannot be avoided. Having enough wealth to take care of your expenses at this stage is crucial for you, especially if you are a woman.
   
   Women tend to live longer than men, so as a woman, you have to ensure that you have enough to take care of yourself till the end.

Key Features to Look for in a Good Investment Plan

When you manage your money yourself, you gain valuable experience with the financial market and investment options. This experience will help you manage your money and your family’s wealth better in the future.

Such knowledge is extremely useful during major emergencies, especially if you suddenly become the primary earning member of the family, for example, in the case of sudden and unfortunate hospitalisation, accident, or death of the spouse.

Your investments, too, should help you take care of such situations financially.

So with all these factors, you need specific savings plans. The following are the key features you will need in a good savings plan for yourself:

• Easy to Manage Online: A savings plan should allow you  to manage it online without having to travel anywhere. These days, most investments can also be managed through apps.
• Small Monthly Contributions: Taking large investments is good. However,  with uncertain times, it is prudent to plan in a way that gives you the flexibility to manage it through small contributions without causing major strain on your monthly household budget. Saving  20-30% of your income per month is considered ideal.
• Option to Automate the Investment: Many of us have acquired the habit of saving through the way our families brought us up. Nevertheless, sometimes we lack the time and end up missing the instalments.
  
  Savings should never be out of what is left as a balance after allocation of all monthly expenses. But it should be along with all other allocations, and only then can you develop a serious attitude towards it.
  
  If your savings plan allows for auto-debit, you can set up a date, and your investment will continue whether you remember or not.
• Safety of Returns: You should always go for a savings plan that ensures the principal stays safe through the years. Unless you are comfortable with aggressive market-linked investments, look for investments where your money stays safe.
  
  Safe investments will let you focus on your profession and family, while your money grows steadily.
• Goal Protection Option: Most people have certain set  financial goals, some of which are very important for their family. If you are saving to meet these goals, wouldn’t it be great if your savings plan could protect these goals from any mishaps?
  
  Upon the death of the investor, the investment part of the plan continues as if you were still alive and investing in it.
  
  At maturity, your family will receive the sum you intended for them in the beginning. Thus, you are not only safeguarding your invested money but also the ultimate objective of your investment.
• Life Cover: Even if you have put aside your career and are now managing your household full time, your contribution to the family can be quantified. In your absence, the family will have to bank on the alternative services, which will cost them, affecting their wealth.
  
  Thus, if your savings plan can provide your family with a lump sum in your absence, you will also keep them financially safe.
  
  Women are often covered under Mediclaim floater policies, but lack adequate cover for critical illnesses. You should look for such contingencies through the Savings Plan.
• Tax Benefits: The ideal savings plans must also make for good tax-saving instruments. This means that all the investments in the plan should help you save tax. The invested money is tax-deductible up to ₹ 1.5 lakhs under section 80C of the Indian Income Tax Act, 1961.
  
  Maturity and death benefits of the savings plan are also tax-exempt under section 10(10D). Thus, once you start investing in this plan, you can set aside your worries about tax liabilities from this investment.

Conclusion

The market is flooded with several savings investment plans, and each comes with its own set of risks. With the varying risk-return profile of all investment options, putting your savings in an ad hoc investment is not a good idea.

Select an investment plan that not only caters to your future financial needs but also makes your life easier now. Why don’t you check out ULIPs by Canara HSBC Life Insurance, which offer a balance of investment growth and life cover under a single plan?