If you want good returns and tax saving by investing your money safely, then small saving schemes can be a great option for you.
Public provident fund
National saving certificate
Citizen Citizen Saving Scheme
Post Office Monthly Income Scheme (MIS)
Five years’ National Saving Time Deposit
Who can invest?
Advantage of tax saving
Why better than bank FD?
What is the right time for investment?
If you want safe investment, good interest and tax saving, then the government’s small saving scheme may be the best option for you. These include more than 7% returns on investment and tax exemption.
Public provident fund
Interest Rate: 7.1%
Period: 15 years
Tax exemption: up to Rs 1.5 lakh (80C)
Specialty: An annual interest is added, best options for retirement
National saving certificate
Interest Rate: 7.7%
Lockin period: 5 years
Tax exemption: under section 80C
Specialty: Interest is added to maturity.
Citizen Citizen Saving Scheme
Interest Rate: 8.2%
Period: 5 years (+3 year extension)
Maximum investment: ₹ 30 lakhs
Safe option for those above 60 years
Post Office Monthly Income Scheme (MIS)
Interest Rate: 7.4%
Period: 5 years
Monthly interest: Rs 5,500 monthly at Rs 9 lakh
Regular monthly is best for income.
Five years’ National Saving Time Deposit
Interest Rate: 7.5%
Period: 5 years
Tax exemption: under 80C
More secure and better returns than FD
Who can invest?
Any person above 18 years
For senior citizens, employed and housewives
Accounts can also be opened in the name of children
Advantage of tax saving
Investing in these schemes, there is a discount of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. That is, safety returns + tax is available in tax.
Why better than bank FD?
Interest rates on the bank’s FD are decreasing, while there has been no change in the interest on the small savings scheme. The government is also guaranteed on this.