Investors often worry about losing money because of market changes. While high-risk, market-linked investments can offer good returns, not everyone is comfortable with such risks. That’s why it’s important to know about the best government investment schemes in India in 2024. For those who want safe, steady growth, government securities are a good option. These low-risk investments provide consistent returns. Here’s a simple guide to the government securities available for Indian investors.
Understanding Government Investment Schemes
Government investment schemes are designed to help people build their financial security. They offer many benefits, such as low-risk and guaranteed returns. Some schemes even provide tax benefits, making them attractive to working professionals, business owners, and others. These schemes are available through post offices and authorized banks across India. Before investing, it’s important to consider which scheme matches your financial goals.
Below are the best government investment schemes in India for 2024:
1. Public Provident Fund (PPF)
Launched in 1968, the PPF is a long-term savings scheme ideal for retirement planning. It offers a fixed interest rate (currently 7.1% per annum), which is reviewed quarterly by the Finance Ministry. Investors can open an account with a minimum of Rs 500 and a maximum of Rs 1.5 lakh per annum. The scheme matures in 15 years but can be extended in five-year blocks.
2. National Savings Certificate (NSC)
The NSC encourages savings among small and middle-income investors. With a minimum investment of Rs 1,000, it offers an interest rate of 7.7% per annum, compounded annually. The investment is locked in for five years, and the interest is reinvested annually.
3. Sukanya Samriddhi Yojana (SSY)
Launched in 2015 under the Beti Bachao Beti Padhao campaign, SSY aims to secure the future of girl children. Parents can invest from Rs 250 to Rs 1.5 lakh annually. The scheme matures when the child turns 21 and offers an interest rate of 8.2%, which is revised quarterly.
4. National Pension Scheme (NPS)
NPS is a retirement-focused scheme regulated by the PFRDA. It requires annual contributions until the age of 60 and offers market-linked returns. The scheme has two tiers: Tier 1 (mandatory) and Tier 2 (voluntary). Investments in NPS are eligible for tax deductions under Sections 80C and 80CCD.
5. Sovereign Gold Bonds (SGBs)
SGBs offer an option for investment in physical gold, providing fixed interest (2.5% per annum) and potential capital appreciation. The bond has a tenure of eight years, with an option for early exit after five years through the secondary market.
6. Senior Citizen Savings Scheme (SCSS)
SCSS targets senior citizens by offering regular income with an interest rate of 8.2%. The maturity period of this scheme is five years, which can be extended by three years. The maximum investment allowed is Rs 30 lakh.
7. Atal Pension Yojana (APY)
Designed for the unorganised sector, this scheme offers a guaranteed pension based on contributions made until the age of 60. Contributions can range from Rs 42 to Rs 1,500 per month.
8. Pradhan Mantri Jan Dhan Yojana (PMJDY)
This scheme aims to promote financial inclusion by allowing individuals to open zero-balance accounts. It offers interest on deposits, along with features such as chequebooks, debit cards, and overdraft options.
9. Kisan Vikas Patra (KVP)
Originally meant for farmers, KVP is now available to all citizens, offering a 7.5% interest rate. The investment doubles in 9 years and 7 months, with a minimum investment of Rs 1,000.
10. Post Office Time Deposit Account
Similar to fixed deposits, this scheme offers different interest rates (6.8%-7.5%) depending on the tenure, ranging from one to five years. It allows premature withdrawal under specific circumstances.
11. Post Office Monthly Income Scheme (POMIS)
POMIS offers a fixed monthly income at a 7.4% interest rate. It is suitable for those seeking regular income, with a minimum investment of Rs 1,000 and a maturity period of five years.