Investment Tips: These days, a lot of folks are looking to put some of their earnings into investments that promise safe and secure returns. For quite a while, bank fixed deposits (FDs) were seen as the safest bet. But recently, many banks have slashed their interest rates. As a result, investors are now on the hunt for government-backed options that provide better returns than FDs while still being safe. Today, we’re going to share three government schemes that offer more attractive interest rates and are viewed as reliable choices.
Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana is a long-term savings plan specifically aimed at daughters. Right now, it boasts an annual interest rate of 8.2 percent, which is higher than typical FD rates. An account is set up in the daughter’s name under this scheme. Parents can contribute for 15 years, and the account stays active for 21 years. You can start investing with as little as Rs 250, and the maximum annual deposit is Rs 1.5 lakh.
The best part about this scheme is that the deposit amount, the interest earned, and the maturity amount are all completely tax-free. This means you won’t have to pay any tax on the returns. It’s a solid option for significant expenses like funding a daughter’s education or wedding.
RBI Floating Rate Savings Bonds
RBI Floating Rate Savings Bonds are another safe investment choice, backed by the government. A standout feature of these bonds is their interest rate, which adjusts every six months. It’s set at 0.35 percent above the International Savings Certificate rate. Currently, they offer an annual interest rate of around 8.05 percent, which surpasses many bank fixed deposits. The tenure for these bonds is seven years, and interest is credited directly to the investor’s account every six months. The minimum investment is Rs 1,000, and there’s no upper limit. However, keep in mind that the interest earned is taxable based on the investor’s tax bracket.
Public Provident Fund
PPF, another government scheme, is known for its safe and stable returns. It currently offers an annual interest rate of 7.1 percent. The maximum annual investment is Rs 1.5 lakh, with a tenure of 15 years. If a person deposits Rs 1.5 lakh annually for 15 years, the total investment will be Rs 22.5 lakh. At the current interest rate, this amount reaches approximately Rs 42 to Rs 43 lakh upon maturity. Significantly, PPF returns are completely tax-free. Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.