Incidentally, numerous minor savings programs are offering attractive returns to investors. There are also two such programs that are quite popular with the middle class. These programs are Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY).
Public Provident Fund (PPF)
Favored by working individuals, this plan can be invested for an extended duration. PPF offers an annual interest rate of 7.1%. Simultaneously, tax advantages can also be utilized. You can begin investing in this plan with a minimum of Rs 500. Simultaneously, a maximum sum of up to Rs 1.50 lakh can be deposited within a financial year. This sum may be claimed as a tax advantage under Section 80C of the Income Tax Act. You can invest in PPF for a duration of 15 years, but once it matures, you have the option to extend it in intervals of 5 years.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is an initiative by the Government of India designed to secure the financial future of your daughter. According to the plan, an account can be established with a minimum of Rs 250 and a yearly maximum of Rs 1.5 lakh. The Sukanya Samriddhi Account Scheme presently provides an interest rate of 8.2% on deposited amounts. It remains valid for 21 years from the account opening date, but the longest deposit duration is 15 years. This account may be opened by the guardian for a girl child under the age of 10. A single account is allowed to be opened for each girl. Simultaneously, a family is allowed to open no more than two accounts.
The decision on the interest rate will be made in December
Clarify that the interest rates for small savings programs such as PPF and Sukanya are determined every quarter. This choice is made by the Ministry of Finance. The determination of the interest rate for small savings schemes for the upcoming quarter, that is, January to March, will be made in the final week of December.
