What are Best Government Saving Schemes in India?
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- Updated On:28-Jan-2021
- Replies:1
Short Answer
Government investment schemes are aimed to provide a reliable and safe way of investment with nominal returns. Grab list of best government schemes in India. There are many government schemes that you can invest in. However, the best amongst them are PPF, NPS, and SSY.
Detailed Answer
There are a number of Government Saving schemes and policies in India to benefit the investors.
Such saving and investment schemes provided by Government of India enable general public to start investing and gain profits. These are average return schemes with a low to no risk policy.
The benefits of investing under these saving schemes is that along with investment, an individual can claim tax exemption benefit under Section 80C up to Rs.1.5 Lac of The Income Tax Act. So, you get a combination of: Investment + Tax benefits
Best Government Saving Schemes in India:
Let me take you through a 3 most popular investment schemes in India:
1. Public Provident Fund (PPF):
Similar to Employee provident Fund, PPF is an investment scheme launched by the provident Fund department (EPFO). The average return for last 5 years under this scheme is 7-8%. The current PPF interest rate for quarter beginning Jan'21 is 7.10% p.a. The lock-in period is 15 years and this a a fairly long term investment scheme.
2. National Pension Scheme (NPS):
This is an initiative taken by government to provide a pension support to individual on retirement. These is a long term investment and can be withdrawn only at the age of 60 yrs.
3. Sukanya Samriddhi Yojana (SSY):
SSY was introduced to promote and encourage welfare of the girl child. SSY account can only be opened by a legal guardian of the girl child whose age is less than 10 years. The account has tenure of 21 years and can be opened with as low as Rs. 1000. The average return over the period is 7-8%.
So, these are the most preferred Govt. saving schemes in India, as per my knowledge. Do you have any other saving or investment schemes in India that need to be listed here? Feel free to add details on the same.
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Discussion (0)
Navigating the huge selection of investing possibilities can be a difficult chore for middle-class people.There are a lot of options, ranging from mutual funds and fixed deposits to the National Pension System. This will give middle-class Indians a thorough insight to the finest investing strategies.
For a salaried class, there are many places where investments done. Know the best investment options for salaried person in India. The best investment options for a salaried person are Gold investments, PPF account, national pension scheme, ELSS, and fixed deposits.
ELSS funds invest a majority of your money into equity and have a 3-year lock-in period. LTCG (Long Term Capital Gains) is applicable on ELSS (Equity Linked Savings Scheme) funds after 1st April 2018. You will have to pay a 10% LTCG tax on your gains above Rs 1 lakh at the time of redemption without any indexation benefit.
The Government of India has been on the forefront of giving schemes for the Girl Child in India. Are there any post office saving schemes for the boy child in India? I was looking at Ponmagan Podhuvaippu Nidhi Scheme but it seems that the scheme is available only in Tamil Nadu Post Office.
Public Provident Fund Scheme is a saving scheme that comes with tax benefits. Ministry of Finance introduced this scheme in the year 1968. The main objective of PPF is to encourage general people to mobilize their small savings. The interest offered on these schemes are not taxable. Precisely, PPF is an investment with non-taxable returns.
Whenever we talk about retirement corpus, Employee Provident Fund and Public Provident Fund come to our mind. These schemes are meant for long-term savings and support our after retirement plans. These instruments are known to be secure & steady with guaranteed earnings. You can start with small savings and end up with significant retirement corpus!
Liquid funds, a type of mutual funds which invest in different money market instruments. The withdrawals from these funds are processed within 24 hours and that's why these are regarded as liquid assets. The fund manager gets flexibility to meet immediate redemption requests.
Mutual funds for 80c benefits also called ELSS or tax saving funds are one of the most prominent and lucrative investment options to save taxes as well as grow money. Primarily because the have lowest lock-in period amongst the 80c investment options and have historically delivered best returns.
Several monthly income plans available such as senior citizen fixed deposit, senior citizen savings scheme, post office monthly income scheme, tax-free bonds, debt funds, and many more are the best monthly income place for senior citizens in India.
Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.