Indian savings schemes are the most safest and profitable investment products which have the support of the Government itself. These schemes not only offer a massive return ratio but are also the perfect way to save money and accumulate a pool of funds to use later in future. Moreover, the security and safety of your contributed funds are the responsibility of the Government. And the Government within every three months decides the new interest rate applicable to these schemes.
Benefits of Investing in Government Saving Schemes:
- Investing in these schemes offers long-term benefits by enabling you to save retirement funds, large funds for children’s higher education & marriage, your future wealth, etc.
- You get a variety of investment options and a multitude of tax benefits. Some of the most preferred investment schemes are Pradhan Mantri Jan Dhan Yojana, Sukanya Samriddhi Yojana for the girl child, NPS, EPF, PPF, and many more.
- Investing and managing these savings schemes are now easier than ever before. The registration process, maintenance, making contributions, and tracking progress all can be done online.
- All these schemes are backed by the Government itself so your money is secure and safe in official hands.
List of Government-Backed Saving Schemes in India
Public Provident Fund or PPF
Public Provident Fund is a type of savings scheme in India having the dual benefits of being both a retirement plan and a safe investment option to accumulate future wealth. It’s one of the safest investment products in India managed by the Government. The pool of funds invested in this scheme is regulated in Government bonds and securities.
Employees’ Provident Fund (EPF)
The Employees’ Provident Fund Organisation (EPFO) introduced the EPF scheme for salaried employees to save a portion of their salary every month to plan their retirement. The interest rate on this scheme is set on an annual basis by the EPFO. After retirement employees will get a lump sum amount with interest received on the accumulations.
National Pension System (NPS)
NPS is a Central Government scheme aimed towards enabling salaried or low-income generators to get fixed income, as pension amounts, after retirement. By just contributing small amounts individuals can get all the benefits of this scheme.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana or SSY is exclusively the best investment product offered by the Government for a girl child. It helps the parents or guardians to open an account for their girl child in her name and make contributions till a massive amount of funds are accumulated along with interest earned. This scheme helps the parents or guardians to plan for higher education, marriage or a bright future for their girl child. A family can open an SSY account for up to 2 girls only, and three in case of a twin birth a second time.
Also read:Register with UPI App with your Aadhaar Card
Atal Pension Yojana (APY)
The main objective of this scheme is to provide financial assistance to people who are below the poverty line. By investing small amounts monthly people can get major pension benefits after retirement. Citizens aged between 18 and 40 years can apply for this scheme. Contributions can be made for a maximum of 20 years.