In order to promote savings habits among Indians, the government has been offering various investment schemes. In that sense today we are going to look at Sukanya Samriti Yojana, Senior Citizens Savings Scheme, Public Provident Fund, Kisan Vikas Bond, National Savings Bonds.
These schemes are safe schemes that offer market risk free and stable returns
Tax incentives are also available when investors are encouraged to invest in these schemes. These plans seem to be safer, though the interest rate is lower than other plans
Sukanya Samridhi Project
The first project we are going to look at is the Sukanya Samridhi project.
The Sukanya Samirthi Yojana was created with the aim of encouraging parents to protect their daughters for the future.
This program was developed for minor children. This SSO account can be opened at any time from the birth of a child to the age of 10 years.
Its maturity period is 21 years.
At present the interest rate is 7.6%.
You can pay a minimum of Rs 250 to Rs 1.50 lakh per year under this scheme.
Any amount deposited in the Sukanya Samirthi Yojana account will be tax deductible up to a maximum of Rs 1.5 lakh under Section 80C.
Maturity and interest on this plan are also exempt.
Under the government’s scheme, a girl child can get a substantial advance after reaching the age of 18.
If your Sukanya Samriti account does not continue in between, you can get it back with interest after 15 years.
Senior Citizens Savings Plan
The Savings Plan for Senior Citizens (SCSS) is considered the safest because it is a government program.
Great savings plan for people 60 and older. This savings plan stipulates that the account must be opened within one month of receiving the pension benefits.
A person must be 55 or 60 years of age or older to join this savings plan. Retired security guards over the age of 50 are also eligible for the internet in this savings plan.
The government should invest at least 1000 rupees in this savings scheme. The maximum may be up to Rs 15 lakh. However it should not be more than the amount received on retirement.
The interest rate on this savings plan is currently 7.40%.
Your investment in this project will double in 9 years.
Public Provident Fund (PPF)
The maturity period of the Public Provident Fund Scheme is 15 years. However it can be continued as 5 year packages even after maturity period.
You can pay a minimum of Rs 500 per year for this scheme and a maximum of Rs 1.5 lakh.
The scheme currently offers an interest rate of 7.1%.
The investment in this project will double in 10 years
Kisan Vikas Bond (KVP)
Kisan Vikas Bond, also known as KVP, is one of the most important savings schemes in the Indian Postal Service. The interest rate on this plan is 6.9%.
It is also seen as a very lucrative and safe scheme for small investors.
Those who want to save through this scheme can make an investment of at least one thousand rupees. No target has been set as the maximum investment.
The amount you invest doubles after 124 months.
Any Indian citizen who has attained the age of 18 years on the internet in this savings scheme of the government is eligible for internet in this scheme.
This savings plan does not require an internet bank account. You can invest with a child or the elderly.
Charities can also buy this bond,
Those who invest in this Kisan Vikas bond scheme are not exempted from income tax like other schemes for both their contribution and profit. However DTS is exempt when taken after the maturity period.
National Savings Certificate (NSC)
The National Savings Certificate Scheme is available at all post offices in the country. It is a small savings investment plan that can provide a steady income. The National Savings Bond is considered a safe and at the same time low risk plan. The minimum investment is Rs.1,000 and there is no limit to the maximum investment. A person who invests in the National Savings Bond Scheme can avail the tax deduction under Section 80C of the Income Tax Act. At present the interest rate on this scheme is 6.8%. If you have invested Rs.1000 in this scheme, after 5 years, your investment will increase to Rs.1389.49. Your investment in this project will double in 10 years.
