Post Office Schemes: In today’s world, whether people are employed or running a small business, one thing is on everyone’s mind: saving a small portion of their income and investing it in the right way. These small savings can add up to a substantial amount over time and come in handy during difficult times. Most people still rely on bank FDs for investment because they offer fixed returns.
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana is the most popular government scheme for daughters. It currently offers an annual interest rate of 8.2 percent, one of the highest and safest interest rates available in the market. Parents can open an account in their daughter’s name and deposit funds for 15 years. The account remains active for 21 years, or until the daughter’s marriage.
The unique feature of this scheme is that the interest earned on the deposit and the entire maturity amount are tax-free. There is no market risk involved. Therefore, it is a strong and reliable option for planning major expenses like a daughter’s education or wedding. Investments can also be made in small installments, making it easy for even middle-class families to join.
Kisan Vikas Patra
Kisan Vikas Patra is a post office scheme where your money automatically doubles in approximately 115 months, or 9 years and 7 months. Currently, KVP offers an annual interest rate of 7.5 percent, and the returns are compounded. For example, if you invest Rs 10,000, your investment will reach approximately Rs 20,000 over the term.
This scheme comes with a full government guarantee. Therefore, investors do not have to worry about losing money or facing market fluctuations. Although premature withdrawal is not considered advisable, partial withdrawals are allowed under certain circumstances. This is a good option for those seeking a safe investment.