When it comes to depositing money and money for the future, even today many people choose fixed deposits (FDS) first. FD is a good source of safe deposits but the return on them is no longer very attractive. Returns on FDs in public sector banks are 3-7 percent per annum. Just like FD, other safe investment options can try small savings schemes. In these government schemes, money is not risky and returns are also good. But remember that the interest rate on the small savings scheme is revised by the government every 3 months. Let’s know 5 government savings schemes with more returns and their interest rate …
PPF i.e. Public Provident Fund Account can be opened in any bank or post office. Any Indian citizen can open it. Minor can also be opened for children or mentally unhealthy people. The account can be started at the minimum of Rs 500 and the minimum amount for deposit in a financial year is Rs 500 and the maximum amount is Rs 1.5 lakh. Currently the interest rate on PPF is 7.1% annually. PPF’s maturity period is 15 years. After that, if you want, you can also move forward in the 5-5 year block.
Post Office Monthly Income Scheme Account (MIS)
The account can be opened with a minimum of Rs 1000 in MIS with 5 years maturity period. Both single and joint accounts can be opened. The maximum limit for deposit is Rs 4.5 lakh in the case of single account and Rs 9 lakh in the case of joint account. The interest rate is currently 7 .4% annually. Interest is paid every month and this is the monthly income.
Sukanya Samriddhi Scheme (SSY)
You can start the SSY account at the post office or bank from minimum of Rs 250. But this account is for girls. Parents can open an account in the name of a child up to 10 years of age. Only one account will open in the name of a girl child. In the case of twin girls, it can be opened for even three girls. The minimum deposits in this account in a financial year are Rs 250 and maximum Rs 1.5 lakh. Sukanya can invest for a maximum of 15 years in the prosperity scheme. Currently the interest rate is 8.2% annually.
Only local residents of India can open the account of the girl. A person who is a resident of India but lives in any other country, cannot take advantage of this scheme. The original or legal guardians can open an account on behalf of the girl child. This means that if someone has adopted the girl, then he can also open Sukanya Samriddhi account for her.
The account can be closed only after the girl turns 21 years old. However, when the child is 18 years old, she is allowed to have a normal premature close. After the age of 18, the child can partially withdraw cash with SSY account.
Senior Citizen Savings Scheme (SCSS)
This scheme of the post office can only be invested once and the maturity period is 5 years. A 60 -year or more person can open an account under SCSS. If someone is 55 years or more but is less than 60 years and has taken VRS, then he can also open an account in SCSS. But the condition for this is that the person will have to open an account within a month of getting retirement benefits. Also, the deposited amount should not be more than the Amount of Retirement Benefits. The investment limit ranges from minimum Rs 1000 to maximum Rs 30 lakh. Currently the interest rate is 8.2% annually.
NSC i.e. National Savings Certificate can be taken from the post office. Its maturity period is 5 years. Investments can be started from Rs 1000. There is no maximum limit. Currently the interest rate is 7.7% annually. NSC can be taken in single or joint. Minor can also take NSC for a child or mentally untrue person. A child over 10 years can take NSC in his name.