SMALL SAVING SCHEME: If you want to keep your hard-earned money in a safe place and also want to earn good interest on it, then Government Small Savings Schemes are the best option for you.
These schemes are not only government, but the money deposited in them is also safe. Also, you get a guaranteed return on these. That is, at the stipulated time you get good interest along with the principal.
Benefits of Government Small Savings Schemes
Capital Protection: These schemes run by the government are completely safe. Your money is deposited with the government, so there is no risk of any kind.
Guaranteed Return: You get fixed interest in these schemes. Interest rates may change from time to time, but you always get some interest.
Tax Benefits: In some small savings schemes, you also get the benefit of tax exemption. For example, investments in schemes like PPF and TD are exempted under Section 80C of Income Tax.
Flexibility: Most small savings schemes have a lot of flexibility in the deposit amount and investment period. You have to invest according to your needs.
Some popular government small savings schemes
The government runs many types of small savings schemes. Some of the most popular of these schemes are mentioned below:
Recurring Deposit Account (RD)
In this account, you can deposit a fixed amount every month. The minimum investment is just ₹ 100. Currently, it gives 6.7% annual interest.
Time Deposit Account (TD)
In this account, you can deposit a lump sum amount. The minimum investment amount is ₹ 1000. You can invest for a period of 1, 2, 3, or 5 years. You get different interest rates according to the deposit period.
Public Provident Fund (PPF)
PPF is for a long-term investment scheme to all investors. In this, you can deposit a minimum of ₹ 500 and a maximum of ₹ 1.5 lakh every year. Currently, it gets 7.1% annual interest. You also get income tax exemption on investment in PPF.
Senior Citizen Savings Scheme (SCSS)
This scheme is run especially for senior citizens. In this, you can deposit a minimum of ₹ 1000 and a maximum of ₹ 30 lakh. You currently get 8.2% annual interest on this.
Post Office Monthly Income Scheme (POMIS)
In this scheme, you can deposit a fixed amount every month. The minimum investment amount is ₹ 1000. You get 7.4% annual interest on this.