Best 5-Year Savings Schemes: Many savings schemes are running in the country whose maturity period is 5 years, and all of them offer benefits at different interest rates. The most popular 5-year savings scheme in the country is Fixed Deposit (FD), a facility that is available in Government Banks, Private Banks, and Post Offices. Also, some companies and NBFCs (Non-Banking Financial Companies) provide FD facilities.
At the same time, the National Savings Certificate (NSC) scheme and Senior Citizens Savings Scheme (SCSS) of the post office are also very popular among investors and provide high interest rates. If you want to make a risk-free investment for 5 years, then you should understand where you will get the most profit.
Senior Citizens Savings Scheme (SCSS) Calculator
Senior Citizens Savings Scheme (SCSS) is currently offering 8.2 percent annual interest, which is paid on a quarterly basis. This scheme is specially designed for senior citizens who need regular income.
If you deposit ₹10 lakh in lump sum in this scheme, the amount received on maturity of 5 years will be ₹14,10,000.
Keep in mind that on depositing ₹10 lakh, you will get interest of ₹20,500 every 3 months.
If this interest is not withdrawn, the maturity amount will be ₹14,10,000. But if the interest is withdrawn, the final amount will be reduced.
Another important thing is that it does not offer interest on interest; Interest will be payable only on the principal amount.
National Savings Certificate (NSC) Calculator
The post office savings scheme National Savings Certificate (NSC) is currently offering 7.7 percent annual compounding interest for 5 years. In this scheme, interest is compounded annually and is payable on maturity, i.e. you do not get interest in between.
If you deposit ₹10 lakh in lump sum in this scheme, the amount received on maturity of 5 years will be ₹14,49,034.
It will have an interest benefit of ₹4,49,034. Investment in NSC is also eligible for tax deduction under Section 80C of the Income Tax Act, making it an attractive option for tax savers.
Fixed Deposit (FD) Calculator
General citizens and senior citizens have different interests in bank fixed deposits (FD). Senior citizens usually get 50 basis points i.e. half a percent more interest than normal, which is an additional benefit for them.
In the country’s major public and private banks, while general citizens are getting a maximum of 7.10 percent interest, senior citizens are getting 7.60 percent annual interest.
If calculated at 7.60 percent interest for senior citizens, they will get a return of ₹ 14,57,081 on a deposit of ₹ 10 lakh, with an interest benefit of ₹ 4,57,081.
However, general citizens will get less interest than this, which will prompt them to compare rates before investing in FD.