Government Schemes: To achieve their aspirations and secure a comfortable retirement, individuals are exploring different avenues of financial planning. Some are putting their money into the stock market, while others prefer bonds or gold. There is also a group of people who are cautious about risks and choose to invest in bank fixed deposit schemes. However, they might not be aware of certain government schemes that provide even better returns than fixed deposits.
Today, we will discuss three government schemes that offer significant returns compared to fixed deposits. Additionally, these schemes come with minimal risk. You can also benefit from tax advantages. These programs are managed through the Post Office.
National Savings Certificate (NSC)
The National Savings Certificate is a secure and guaranteed return option available under the government’s small savings initiative. It provides an interest rate of around 7.7% and includes tax-saving benefits. This scheme is regarded as a favorable choice for small investors.
Public Provident Fund Scheme (PPF)
This scheme, also managed by the Post Office as part of the small savings program, is among the most favored. It has the potential to build significant wealth over time. It offers an annual return of 7.1%. You can invest without any risk for 15 years, with the option to extend it to 25 years. Moreover, you can save up to Rs 1.5 lakh each year under Section 80C.
Sukanya Samriddhi Yojana (SSY)
A well-known post office scheme that provides considerable benefits. This scheme is set up in the name of girls under the age of 10. Investments are required for 15 years, and the account matures when the girl reaches 21, at which point the entire amount can be withdrawn. This scheme offers a strong interest rate of 8.2%. You can open this account in the name of up to two girls in a family, and in the case of twins, three accounts can be established.