Small savings plans like the Public Provident Fund (PPF), Senior Citizen’s Savings Scheme (SCSS), and Sukanya Samriddhi Yojana (SSY) have been popular choices for folks wanting to play it safe with their money. They’re like little money buddies that help you build a financial cushion over time. With different options out there, just pick the one that suits your goals and comfort level.
6 Benefits of Investing in Small Savings Schemes
1. Fixed Source of Income
Saving a bit here and there? Smart move! These small savings plans are like the steady turtles of the financial world—they might not sprint, but they offer a reliable pace. Amit Gupta from SAG Infotech puts it simply, “Sure, they might not sparkle like riskier options, but for those who prefer a smooth ride over a wild one, they’re a solid choice.”
2. Guaranteed Returns
Small savings plans are like a financial security blanket—they’re backed by the government and practically risk-free. Invest in them, and you’re in for assured returns.
3. Low Investment
To hop on board the savings train, investors need to pitch in a minimum amount. The required sum depends on the small savings scheme chosen, ranging from ₹250 to ₹1,000.
4. Diversified Investments
“These small savings schemes can be viable options to diversify your portfolio, and keep your accumulated corpus secure.”
5. Tax Benefits
Good news! Invest in these schemes, and you can score tax benefits up to ₹1.5 lakhs under Section 80C of the Income Tax Act.
Amit Gupta says small savings schemes are like the superheroes of a solid financial plan. They’re safe, affordable, and can bring in regular income, securing a stable future for you and your family.
Here’re are the various types of Small Savings Schemes to invest in:
- Public Provident Fund (PPF)
- Senior Citizen’s Savings Scheme (SCSS)
- Sukanya Samriddhi Yojana (SSY)
- National Savings Certificate (NSC)
- Kisan Vikas Patra (KVP)
- Post Office Monthly Income Scheme (POMIS)
- Post Office Time Deposit (POTD)
- Atal Pension Yojana (APY)
- Pradhan Mantri Vaya Vandana Yojana (PMVVY)