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From Ordinary to Extraordinary: Navigating Saving Schemes

In a world driven by financial stability and security, navigating the realm of saving schemes is an essential skill. Whether you're a novice in the world of personal finance or a seasoned investor, understanding the diverse landscape of saving schemes can help you transform your ordinary financial situation into something truly extraordinary. This blog will serve as your comprehensive guide to navigating saving schemes, shedding light on the various options available, their benefits, and how they can help you achieve your financial goals.
October 30, 2023

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1. The Basics of Saving Schemes

Before delving into the world of saving schemes, it's crucial to grasp the basics. Saving schemes are financial instruments designed to help individuals save and invest their money, each with its unique set of rules, risks, and benefits. The most common types of saving schemes include savings accounts, fixed deposits, recurring deposits, and public provident funds.

2. Savings Accounts

Savings accounts are the most basic and accessible form of saving scheme. They are offered by banks and credit unions and allow you to store your money securely while earning a modest interest rate. While the returns may not be extraordinary, the liquidity and safety of savings accounts make them a fundamental part of any financial portfolio.

3. Fixed Deposits

For those seeking a more substantial return on their savings, fixed deposits are a popular choice. Fixed deposits are time-bound investments that offer higher interest rates than savings accounts. They are known for their safety and predictability, making them an excellent choice for individuals looking to preserve their capital while earning steady returns. You can consult a Cube Wealth Coach or download the Cube Wealth App.

4. Recurring Deposits

Recurring deposits are a unique saving scheme that combines the regularity of savings accounts with the higher interest rates of fixed deposits. They require you to deposit a fixed amount of money at regular intervals, often monthly. Over time, this disciplined approach can help you accumulate a significant sum, making it an extraordinary choice for long-term savers.

5. Public Provident Fund (PPF)

Public Provident Fund (PPF) is a government-backed saving scheme that offers attractive interest rates and tax benefits. It's designed to promote long-term savings and wealth creation, making it a popular choice for those looking to create an extraordinary nest egg for their future. The lock-in period is relatively long, but the benefits make it worth considering.

6. Investment-Linked Saving Schemes

If you're seeking extraordinary returns and are willing to accept a higher level of risk, investment-linked saving schemes may be your answer. These schemes combine saving with investment in stocks, bonds, or other assets. The returns are variable and depend on the performance of the underlying investments, making them a suitable choice for those with a higher risk tolerance.

7. Tax-Saving Saving Schemes

Maximizing your savings also means minimizing your tax liability. Several saving schemes offer tax benefits, such as the Employee Provident Fund (EPF), National Savings Certificate (NSC), and Tax-saving Fixed Deposits. By utilizing these schemes, you can make your financial journey extraordinary by both saving and reducing your tax burden.

8.  Balancing Risk and Return

While choosing saving schemes, it's essential to strike a balance between risk and return. The right scheme for you will depend on your financial goals, risk tolerance, and investment horizon. Consider your long-term and short-term objectives, and remember that diversifying your savings across various schemes can be an effective strategy to manage risk while aiming for extraordinary returns.

9. The Power of Compounding

One of the secrets to transforming an ordinary savings plan into an extraordinary one is harnessing the power of compounding. Compounding involves earning interest on both your principal and the interest you've previously earned. The longer your money remains invested, the more remarkable the compounding effect becomes. Start early, save consistently, and let time work its magic.

10. Regular Reviews and Adjustments

Your financial journey is not a one-time affair. To ensure that your saving schemes continue to work toward your extraordinary goals, it's essential to review and adjust your portfolio regularly. Market conditions, your personal financial situation, and your goals may change, so it's crucial to stay flexible and make necessary alterations.

Frequently asked questions (FAQs) 

1. What is the primary difference between a savings account and a fixed deposit?

A savings account is a basic bank account that offers easy access to your funds and a modest interest rate. In contrast, a fixed deposit is a time-bound investment that locks your money for a specific period and offers a higher interest rate. The key difference is accessibility and returns, with fixed deposits typically providing higher returns at the cost of reduced liquidity.

2. How can I determine which saving scheme is best for my financial goals?

The choice of saving scheme depends on your specific financial goals, risk tolerance, and time horizon. If you want safety and liquidity, a savings account or recurring deposit may be suitable. If you aim for higher returns and can accept some risk, consider investment-linked schemes. To save on taxes, explore tax-saving schemes. Diversifying your savings across various schemes can also help balance risk and return. You can consult a Cube Wealth Coach or download the Cube Wealth App.

3. What is the power of compounding, and how does it impact my savings?

The power of compounding refers to the ability of your money to generate earnings not only on the initial principal but also on the interest generated over time. This effect accelerates as your money remains invested for a more extended period. Compounding can turn an ordinary savings plan into an extraordinary one, allowing your wealth to grow significantly over time.

4. Are there any tax implications associated with saving schemes?

Yes, there are tax implications to consider. Some saving schemes, such as Public Provident Fund (PPF) and tax-saving fixed deposits, offer tax benefits under specific sections of the Income Tax Act. However, the interest earned on many fixed deposits is taxable, and you may have to pay capital gains tax if you gain from investment-linked saving schemes. It's essential to understand the tax implications of each scheme and plan accordingly.

5. What should I keep in mind when reviewing and adjusting my saving schemes?

When reviewing and adjusting your saving schemes, consider factors such as changes in your financial goals, investment horizon, and risk tolerance. Additionally, pay attention to shifts in market conditions, interest rates, and inflation. Regularly reassess your portfolio to ensure that it aligns with your financial objectives and remains in line with your overall financial plan.


Navigating saving schemes is a journey that can take you from an ordinary financial situation to an extraordinary one. By understanding the basics of saving accounts, fixed deposits, recurring deposits, PPF, investment-linked saving schemes, and tax-saving saving schemes, you can create a diversified portfolio tailored to your unique financial goals and risk tolerance.

Remember that the key to extraordinary financial success lies in striking the right balance between risk and return, harnessing the power of compounding, and regularly reviewing and adjusting your savings strategies. With a well-informed approach and a commitment to saving, you can transform your financial future from ordinary to extraordinary. You can consult a Cube Wealth Coach or download the Cube Wealth App.

So, start today, explore your options, and take that first step towards a more secure and prosperous financial future. Your extraordinary financial journey begins now.

Team Cube

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