Small Saving plans: If you want to grow your hard-earned money safely while earning higher rates than bank fixed deposits (FDs), the government’s small savings plans are the way to go. These programs, which are available through post offices and banks, provide investors with safe, fixed returns as well as tax benefits in many situations. interest rates on these schemes range from 7% to 8.2%, making them more appealing than most bank fixed-term deposits.
Small Saving plans: Let’s look at the top 5 best little savings strategies
1. Public Provident Fund (PPF)
PPF has been a popular choice among investors for decades. It features an annual interest rate of 7.1% and a 15-year lock-in period that can be extended in five-year increments. You can start with ₹500 annually and invest up to ₹1.5 lakh. Investments, interest, and maturity funds in PPF are tax-free.
2. Sukanya Samriddhi Yojana (SSA)
The Sukanya Samriddhi Yojana has the highest interest rate, 8.2%. Parents can open this scheme for daughters under the age of ten. Annual investments range from ₹250-₹1.5 lakh. The investment, interest, and maturity amounts are all tax exempt.
3. National Savings Certificate(NSC)
NSC provides a 5-year term at 7.7% interest. This scheme requires a minimum investment of ₹1000. The interest is compounded annually and paid at maturity. Investments also provide tax advantages.
4. Senior Citizen Savings Scheme(SCSS)
SCSS provides an annual interest rate of 8.2% for persons 60 and over. Investments might range between ₹1,000 and ₹30 lakh. Interest is credited straight to the bank account every quarter, assuring a consistent revenue stream.
5. Kisan Vikas Patra (KVP)
Investments in Kisan Vikas Patra double in about 115 months (9 years and 7 months). The interest rate is 7.5 percent. This is a government-backed, secure, and straightforward investing alternative.
How and Where to Invest?
All of these schemes are available in post offices and select bank branches across India. To invest, go to a bank and fill out a form and provide KYC documentation. Some banks offer online investment possibilities for PPF and SSA.
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