There is often a big difference between spending and saving in middle-class families. After taking out the necessary expenses from the job or salary, everyone wants to save some money for their future. Amidst all the responsibilities, every working person must have thought at some point in time how he can save so much money that he does not need to earn in old age, and the rest of his life can be spent comfortably.
So, if you also want to invest your hard-earned money in a safe and profitable place, then this article is for you. We will tell you about 5 such great investment schemes of the government, which are 100% safe and will free you from the worry of money after retirement.
These 5 government investment schemes are 100% safe
Before investing your hard-earned money anywhere, it is natural to think about the risk. In such a situation, we are going to tell you about 5 such reliable investment schemes of the government, which are 100% safe. If you invest in any of these, then after retirement, you will not have to worry about money at all. This is a powerful way to secure your future financially.
Employees Provident Fund
Any government or private employee must have a Provident Fund (PF) account. It provides them social security in case of retirement or job loss. Crores of employees in India are associated with EPFO. 12% of the employee’s basic salary is deposited in the PF account, and the company also deposits the same amount.
This fund matures when the employee reaches the age of 58. Then the employee can withdraw the amount deposited in it. Through this, you can raise a good amount for your retirement. Partial withdrawal is also allowed in case of an emergency. The special thing about this scheme is that your contribution to it is eligible for tax deduction under Section 80C.
Unified Pension Scheme
The Unified Pension Scheme is a new pension scheme for government employees. Under this, employees will be given a guaranteed pension after retirement. The pension amount will be 50% of the average basic salary of the 12 months before retirement. All those who retired from the inception of NPS and will retire by 31 March 2025 will be eligible for all the benefits of UPS.
The remaining balance will be available after adjusting whatever money they have withdrawn. UPS gives you the facility of an assured family pension. Dearness Allowance (DA) will also be applicable in this, which will be based on the All India Industrial Workers Consumer Price Index. This scheme can prove to be a big safety net for government employees.
Pradhan Mantri Vaya Vandana Yojana
PMVVY (Pradhan Mantri Vaya Vandana Yojana) is a pension scheme designed for senior citizens aged 60 years and above. The scheme aims to provide financial security to senior citizens in old age. It gives a guaranteed return of 7.4% for 10 years. Market volatility does not affect the returns of this scheme.
It provides financial security, which is very important at this age. A maximum of ₹15 lakh can be invested in it per person. This scheme provides a fixed monthly, quarterly, or annual pension depending on the investment amount. This scheme can prove to be a boon for senior citizens.
Public Provident Fund
If you are looking for an investment with tax exemption and great returns, then investing in Public Provident Fund, i.e., PPF, can be a perfect option. Investment in PPF comes under the EEE (exempt-exempt-exempt) category. In this scheme, you get the full benefit of income tax exemption. No tax is also to be paid on the amount received on maturity.
The government guarantees you security in the PPF account. Currently, 7.1% annual interest is being given on the PPF account. This means that by investing in it, on the one hand, you can save a lot of your tax, and on the other hand, you can also get great returns.
Investment in PPF is for 15 years. But you can keep your money deposited as per your wish, and you will keep getting interest on it. The minimum investment amount in PPF is ₹500, and a maximum of ₹1.5 lakh can be invested in a year.
Senior Citizen Savings Scheme
If you are a senior citizen and want to save tax with a safe investment, then you can invest money in the Post Office Senior Citizen Savings Scheme Account (SCSS). People above 60 years of age can invest money in this scheme. Currently, 8.20% annual interest is being given in this scheme. This scheme is 100% secured by the government.
The maturity period of this scheme is 5 years. The maximum limit of investment is ₹30 lakh per person. The interest keeps getting revised every 3 months. If a couple invests, the combined monthly income becomes ₹41,000. By investing in this scheme, you can claim a deduction of ₹1.5 lakh from your total income under section 80C of the Income Tax Act.