Savings are a part of your income that you can set aside to be utilised at a later date. Generally, you can choose to save a part of your salary or monthly income to save; however, you can also save any other earnings or bonuses that you may receive from time to time. The amount you want to save and how you want to save it can be determined by you as per your needs.
 

Savings plans are a systematic way to save money over a long period of time. At the end of the policy tenure, you can choose to receive the saved amount as a lump sum or as a regular income.

A savings calculator is a convenient and free online tool that you easily access to calculate your savings over a number of years. When you have a financial goal that needs to be fulfilled after some number of years, you can decide the tenure during which you want to save a certain amount of money. The savings calculator in India not only helps you determine this tenure but also factors in the interest rate provided by you so that you get a realistic estimate of your returns.
 

Since a savings calculator is an automatic tool, all you need to do is fill in the amount you would like to save during a given time period and mention the interest rate. The result will let you know the final returns based on the information provided.
 

A savings calculator in India is an important tool since you can plan your financial goals over the years and meet them without affecting your basic and essential expenses in any way. As a financial planning tool, a savings calculator also helps you systematically save your money.

When you want to save towards your financial goals, it is important to ensure that the savings habit is disciplined and regular. Hence, you can set aside a predetermined sum that will be saved each month, gradually leading up to the savings corpus at the end of the tenure.
 

The savings tenure is also an important component of your savings; while you can opt for short-term savings, it is always advisable to save over the long term. Hence, instead of looking at saving some money over a few months, opt for a savings tenure of at least 5-10 years.
 

Apart from helping you calculate your total savings; a savings calculator offers an indication of how much you need to save and contribute towards a savings plan each month or on a regular basis. Therefore, if you are investing in a savings plan, you will also be able to determine the monthly premiums for the savings policy to meet your savings goal.
 

With a savings plan, you can not only select the tenure for which you want to save your money but also determine how you want to pay the premiums towards the savings plans. Hence, if you choose to pay your premiums on a monthly basis, you can save some money each month, which comes with the added benefit of life insurance coverage for your family and yourself.
 

At the end of the policy term of the savings plan, you can receive the maturity benefits in the form of savings either as a lump sum or as a regular income, subject to the terms and conditions of the policy.

Savings goals are financial goals that you can achieve by saving the desired amount of funds which can then be used to fulfil these goals. For example, suppose you are planning to purchase a new car after 5 years, you can use a savings calculator to check how much money you need to save during this time to be able to buy your car. Here, the purchase of your new car is the savings goal.
 

Similarly, you may have to save for a longer duration for bigger goals such as purchasing a house or planning your child’s higher education. Depending on how major the savings goal is, you can know the savings tenure and the amount to be saved with the help of the savings calculator. Below are some of the goals most people save for:

• Save for Retirement
   

  It is important to create a savings fund for your retirement as, during your golden years, you will not have the benefit of a monthly salary. Therefore, to plan for your retirement, it is advisable to save for a period of 10-20 years, depending on how much money you will need for all the expenses after you retire.

• Save for Big Purchases
   

  Big purchases and expenses such as buying a house, relocating to a new city, starting a business, or saving for your child’s higher education needs careful planning. These goals should be planned well in advance and require at least 5-10 years of savings for you to be able to achieve them.

• Emergency Fund
   

  Apart from saving for all your financial goals, have an emergency fund to help you in serious situations. For example, in case of a medical emergency or a loss of income, you must have a financial support system to enable your family, and you cover all your expenses for at least a year.

To calculate simple interest on your savings account, you need to multiply the account balance by the rate of interest by the duration the money is present in the account.
 

Hence, you can use the simple interest formula: Interest = P x R x N.
 

P = Principal amount (the initial balance).
 

R = Interest rate (per annum, expressed as a decimal).
 

N = Number of years (the time period of your savings).
 

So, if your savings account has ₹50,000 and is earning 1% interest each year, the interest rate, in decimal form, will be 0.01%. Here is the formula for the same.
 

Interest = ₹50,000 x 0.01 x 1, which equals ₹500.
 

You can use the Tata AIA Life Insurance savings calculator to find out how much money you can save over the years to achieve your financial goals and how much interest your savings will earn during this period.

The tax benefits that one can avail of on a savings plan are as per the prevailing tax laws and may be subject to change at any time. As per Section 80C of the Income Tax Act, premiums paid towards all life insurance plans for every financial year are eligible for a tax deduction of up to ₹1.5 Lakh, subject to the terms and conditions of the policy. Therefore, one can claim tax benefits on the savings plan premiums paid during a financial year.
 

To enhance the scope and coverage of a savings plan, one can also add one or more optional riders to their base policy, whose premiums are not included in the base policy. By adding a critical illness rider or a health rider to the base savings plan, one can avail of tax deductions on the rider premiums under Section 80D of the Income Tax Act.
 

Tax benefits are also applicable to the death benefits, or the maturity proceeds of a savings policy. Under Section 10(10D) of the Income Tax Act, the death benefit sum assured, paid out to the nominee or the family on the death of the policyholder, is exempt from taxes. Similarly, the maturity proceeds or the savings on the policy may also be exempt from taxes, subject to policy terms and conditions.

You can use a savings calculator in India for different reasons, such as creating a financial plan based on your savings, purchasing a savings insurance policy to meet your goals, and understanding how much money you need to fulfil your short-term or long-term goals.
 

The savings calculator is a free and flexible online tool that lets you choose the tenure for your savings along with the interest rate. This helps you know the final amount that you will have to save and make a concrete plan accordingly. In addition, the whole process saves a lot of time which would have been spent making manual calculations.

The amount you save each month should be such that your basic and essential expenses should not be disrupted. This will depend on your current income, your household expenses, your family’s needs and so on. If you have a financial goal that needs to be met after a certain time period, you can use a savings calculator to check how much you should be saving during this time to ensure that you can meet the savings goal.

Yes, one of the primary reasons why many people use a savings calculator in India is to understand how much money they should save over a certain period. For example, if you have some financial goals to be met in about 10 years, the savings calculator lets you know the amount to be saved during this period and an estimated return on your savings while also considering the inflation rate and other factors.

By mentioning your existing savings amount, you will understand how much more you need to save over the years or months to be able to meet the expected returns. The gap between your present savings and the expected amount helps you make a better and more realistic financial plan for your needs.

If you use the Tata AIA Life Insurance savings calculator, you will receive a recommendation on which savings plans may be most suitable for your savings and financial goals. By comparing these plans, you can then choose one policy which makes it possible for you to meet your financial objectives.
 

Alternatively, if you are choosing between any of our savings plans and want to estimate your returns in the future from savings, our online savings calculator can help you know the amount you need to save.

Yes, an online savings calculator offers accurate results based on the information you provide. Hence, if you fill in the correct details about your savings, you can get the right estimation of your expected savings by the end of the savings period.
 

Since the calculation is done online, there is also no room for human errors. And lastly, an online savings calculator also saves a lot of time as compared to the manual calculations of your savings.

No, using an online savings calculator does not incur any charges since this is a free and easy-to-use online tool. You can simply visit the official Tata AIA Life Insurance website and use the savings calculator.