Image Source : FREEPIK 10 government savings schemes to help grow your wealth: Which one is best for you?
Best Govt Saving Schemes: In India, the government has established several savings schemes to incentivize individuals to invest their money and cultivate a culture of saving. These schemes offer a range of benefits and aim to provide a secure and dependable investment option for individuals. By investing in these schemes, people can contribute to the country’s economic growth by channeling their savings into productive investments.
Some of these government savings schemes in India also come with tax benefits, making them a compelling investment option for those seeking to save on taxes. Besides, these schemes aid the government in raising funds for different developmental projects and initiatives. Moreover, these schemes encourage individuals to invest their money wisely and contribute to the economic growth of the nation.
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Here are top ten government saving schemes that would help you grow your wealth:
Public Provident Fund (PPF):
One of the most popular savings schemes in India, PPF offers tax-free returns on investments with a lock-in period of 15 years. The interest rate for the April-June quarter of 2023 is 7.1%. In a fiscal year, the minimum deposit is Rs 500 and the maximum deposit is Rs 1,50,000.
National Savings Certificate (NSC):
NSC comes with a lock-in period of 5 or 10 years and offers attractive interest rates. The interest rate for the five-year NSC is 6.8%, while the ten-year NSC has an interest rate of 7.2%. The minimum deposit is Rs 1000/-, and subsequent deposits are in multiples of Rs 100.
Senior Citizen Savings Scheme (SCSS):
As the name suggests, SCSS is designed for senior citizens and offers an attractive interest rate of 7.9%. The scheme comes with a lock-in period of 5 years and can be extended for an additional 3 years. The minimum deposit is Rs 1000 in multiples of Rs 1000, with a maximum deposit of Rs 30 lakhs.
Sukanya Samriddhi Yojana (SSY):
A savings scheme for the girl child, SSY offers an interest rate of 7.6% and comes with a lock-in period of 21 years. The scheme offers tax benefits and can be opened until the girl child turns ten. In a fiscal year, the minimum deposit is Rs 250 and the maximum deposit is Rs 1.5 lakhs.
Kisan Vikas Patra (KVP):
KVP offers attractive interest rates and comes with a lock-in period of 2.5 years. The interest rate for KVP for the April-June quarter of 2023 is 6.9%. Minimum deposit is of Rs 1000, followed by multiples of Rs 100.
Post Office Time Deposit (POTD):
POTD offers a secure investment option with attractive interest rates. The interest rate for a one-year time deposit is 5.5%, while the interest rate for a five-year time deposit is 6.7%. There is no maximum deposit limit and a minimum deposit of Rs 500 is required.
Atal Pension Yojana (APY):
APY is a pension scheme for the unorganized sector, offering a fixed pension amount after the age of 60. The scheme offers different pension amounts based on the contribution amount, with a minimum contribution of Rs. 42 per month.
Pradhan Mantri Vaya Vandana Yojana (PMVVY):
A pension scheme for senior citizens, PMVVY offers an interest rate of 7.4% and comes with a lock-in period of 10 years. The scheme offers regular pension payouts for the duration of the policy.
National Pension System (NPS):
A pension scheme for individuals aged 18-60, NPS offers a range of investment options and comes with tax benefits. The scheme offers different investment options, including equity, corporate bonds, and government securities. A contribution of Rs. 500 is required to open the account. There is no maximum limit for investment. The interest rate for the National Pension System (NPS) is not fixed. The returns on investment in the NPS depend on the performance of the underlying assets in which the funds are invested.
Mahila Samman Saving Certificate (MSSC)
It is a government savings scheme aimed at promoting savings among women in India. It is available to all adult Indian women and minors with the help of a legal guardian. It requires a minimum investment of Rs. 1,000, with no maximum limit, and has a lock-in period of five years. The interest rate for MSSC is 7.8% per annum for the April-June quarter of 2023.
When choosing a government savings scheme, consider your investment goals, risk tolerance, and investment horizon.
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