Best Small Savings Schemes– After the reduction in interest rates on FDs by banks, risk-averse investors are facing a dilemma. They are looking for such investment options which have good returns and there is no risk of losing money.
After the Reserve Bank of India cut the rate of interest, on one hand, home loan borrowers have got relief, while on the other hand, the interest on bank FD has come down. Almost all banks, including State Bank of India and HDFC Bank, have reduced the interest rates on FDs. But, you can still get great returns by investing money in many small savings schemes. These schemes are getting interest ranging from 7.5 percent per annum to 8.2 percent.
Investors are currently getting 8.2 percent interest in Sukanya Samriddhi Yojana. In this scheme, you can open an account in the name of your daughter. In this scheme, from Rs 250 to Rs 1.50 lakh can be deposited annually. It can be opened in the name of a girl child below 10 years of age by her parents or legal guardian.
National Savings Certificate
Money invested in National Savings Certificate (NSC) is giving 7.7 percent return. The lock-in period of this scheme is five years. Tax exemption is available under Section 80C of the Income Tax Act on Rs 1.5 lakh invested in NSE in a year. Yes, you must know that you will have to pay income tax on the interest income of NSE.
Post Office Monthly Income Scheme
Investors are getting 7.4 percent return on money invested in Post Office Monthly Income Scheme. The maturity period of this scheme is five years. The minimum deposit in Post Office Monthly Income Scheme is Rs 1,000. Investment can be made in multiples of Rs 1000. The maximum deposit limit for a single account is Rs 9 lakh. The maximum deposit limit for a joint account is Rs 15 lakh.
Kisan Vikas Patra
Kisan Vikas Patra is a lump sum deposit scheme. Currently, this scheme is getting 7.5 percent interest. Risk-averse investors invest a lot of money in small savings schemes and bank FDs. Bank FD is the favorite investment option of Indians. A lot of money is invested in fixed deposits due to the negligible risk of sinking money and guaranteed returns. In Kisan Vikas Patra scheme, you can invest a minimum of Rs 1000 and in multiples of 100. There is no maximum investment limit.
Senior Citizen Saving Scheme
If you want to invest your retirement fund in a place where you get a huge interest, then there is nothing better for you than Senior Citizen Saving Scheme (SCSS). Only people above 60 years of age can invest in this scheme and currently it is giving 8.2 percent interest. Up to Rs 30 lakh can be invested in Senior Citizen Saving Scheme.
