With many investors being risk averse and looking for government-backed secured portfolios, here are six schemes that are best suited for them. These schemes are best known for their long-term investments, better benefits, tax efficiency and many more of such benefits.
Let’s take a quick look at the best government savings schemes.
Launched in 2015 with the aim to encourage parents to secure their daughters’ future, this scheme was targeted towards children below or up to the age of 10. The minimum amount of investment for this scheme is Rs 1,000 and maximum is Rs1.5 lakh per annum. The account is operative for 21 years from the date of opening.
One of the most popular government schemes, it is a retirement saving plan available to every citizen of India, but mandatory for government employees. Anyone in the age group of 18 to 60 is eligible to the subscription of this scheme. Under this scheme, one can allocate funds in equity, corporate bonds and government securities, and investments up to Rs50,000 is liable for deduction under Section 80CCD (1B). However, additional investments up to Rs 1,50,000 is liable for tax deduction under Section 80C of the Income Tax Act.
One of the oldest retirement schemes of the Indian government, the amount invested, earned interest and the withdrawn amount, form a Public Provident Fund account all are exempted from tax. In this scheme, one can claim a tax deduction up to Rs1,50,000 under Section 80C of the Income Tax Act.
Introduced for the promotion of savings amongst Indians, the minimum amount required for investment is Rs100 and no maximum limit. A tax deduction of Rs1.5 lakh can be claimed under Section 80C of the Income Tax Act. However, the interest rate of a National Savings Certificate changes every year. Also, only Indian residents are eligible to make an investment in this scheme.
Launched as a social security scheme for the workers of the unorganised sector in 2015, a citizen within the age group of 18-40 years with a valid bank account can apply for the scheme. The Atal Pension Yojana (APY) was introduced
to encourage individuals from the weaker section to opt for a pension plan for a better future. Anyone who is self-employed can avail it. One can apply for APY through their bank or post office. However, the only condition is that before the age of 60 all contributions must be made.
Launched to provide basic banking services like a Savings Account, deposit account, insurance, pension and so on, the government aimed at providing easy access to financial services such as savings and deposit accounts, remittance, insurance, credit and pension to the poor and needy section of our society. The minimum age limit in this scheme for a minor is 10 years; otherwise, any resident over 18 years of age is eligible to open an account. Only after reaching the age of 60 can one take exit from this scheme.