Nowadays, most of the people want to invest a part of their income in such a place, which keeps the money safe and gives good returns. Bank FD has been considered the safest option for a long time. However, in recent months many banks have cut interest rates. Therefore, investors are now looking for government-backed options which give higher returns than FDs and are also safe. Therefore, today we will tell you about three such government schemes which give better interest rates and are considered reliable options.
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana is a long-term savings scheme specially designed for daughters. Currently, the interest rate on this is 8.2 percent per annum, which is higher than the normal FD rate. Under this scheme, an account is opened in the name of the daughter. Parents can invest for 15 years, and the account remains active for 21 years. Investment can be started with as low as ₹250, while a maximum of ₹1.5 lakh can be deposited annually. The most special thing about this scheme is that the amount deposited in it, interest received and maturity amount are all completely tax-free. This means that no tax will have to be paid on the returns. It is considered a good option for big expenses like daughter’s education or marriage.
RBI Floating Rate Savings Bond
RBI Floating Rate Savings Bond is also a safe investment option, which is guaranteed by the government. The special thing about these bonds is that their interest rate gets reset every six months. This is 0.35 percent more than the International Savings Certificate rate. Currently, they offer an annual interest rate of around 8.05 percent, which is higher than many bank fixed deposits. Their tenure is 7 years, and the interest is credited directly to the investor’s account every six months. Additionally, the minimum investment is ₹1,000 with no maximum limit. However, the interest received on these bonds is taxable as per the tax slab of the investor.
Public Provident Fund
PPF is also a government scheme known for its safe and stable returns. Currently, it is getting an annual interest rate of 7.1 percent. The maximum annual investment in this is ₹ 1.5 lakh, whose tenure is 15 years. If a person deposits ₹1.5 lakh annually for 15 years, the total investment will be ₹22.5 lakh. According to the current interest rates, this amount on maturity reaches approximately ₹42 to ₹43 lakh. The special thing is that PPF returns are completely tax-free.
