The Government of India has many investment schemes to help people save money and earn good returns. These schemes are like special saving plans that are safe and good for everyone, no matter how much money you have or what you want to achieve.
Investment Schemes by Gov. of India
In this blog, we will look at some of the most popular government investment schemes. We’ll share information about how much money you can earn from them, examples of how they work, and answer some common questions. Plus, we’ll give you some helpful websites to learn more!
1. Post Office Monthly Income Scheme (POMIS)
- Current Interest Rate: 7.4%
- Maturity Period: 5 years
- Tax Benefits: No tax benefits on interest earned.
- Website: India Post
Example: If you invest ₹1,00,000 in the Post Office Monthly Income Scheme, you will earn ₹7,400 every year, which means about ₹616.67 every month. This is a great way to get regular income! This is the best government schemes for investment.
More Detail :
- Account matures in 5 years.
- Minimum ₹ 1000/- & in the multiples thereof. Maximum ₹ 9 Lakhs in single account and ₹ 15 lakhs in Joint Account.
- A depositor may operate more than one account under this scheme subject to the ceiling of maximum amount, which may be invested in single, or joint account.
- A guardian may also open an account on behalf of a minor or a person of an unsound mind.
- Account can be closed prematurely after one year but before the expiry of three years on deduction of 2% of the deposit. In case the account is closed after expiry of three years, 1% of the deposit shall be deducted.
2. Sukanya Samriddhi Yojana
- Current Interest Rate: 8.2%
- Maturity Period: 21 years or until marriage (whichever comes first)
- Tax Benefits: Tax deductions under Section 80C.
- Website: Sukanya Samriddhi Yojana
Calculate Now : Sukanya Samriddhi Yojana Calculator
https://thebullbook.in/sukanya-samriddhi-yojana-calculator/
Example: If you deposit ₹50,000 every year for 14 years (until your daughter turns 21), your total investment would be ₹7,00,000. With an interest rate of 8.2%, you could get around ₹13,00,000 at maturity! This is best indian government investment schemes for womens.
More Detail :
- Minimum deposit ₹ 250/- Maximum deposit ₹ 1.5 Lakh in a financial year.
- Account can be opened in the name of a girl child till she attains the age of 10 years.
- Only one account can be opened in the name of a girl child.
- Account can be opened in Post offices and in authorised banks.
- Withdrawal shall be allowed for the purpose of higher education of the Account holder to meet education expenses.
- The account can be prematurely closed in case of marriage of girl child after her attaining the age of 18 years.
- The account can be transferred anywhere in India from one Post office/Bank to another.
- The account shall mature on completion of a period of 21 years from the date of opening of account.
- Deposit qualifies for deduction under Sec.80-C of I.T.Act.
- Interest earned in the account is free from Income Tax under Section -10 of I.T.Act.
Also Read : Wealth Creation in India: A popular Investment Options and Past Performance https://thebullbook.in/wealth-creation-in-india/
3. Senior Citizens Savings Scheme (SCSS)
- Current Interest Rate: 8.2%
- Maturity Period: 5 years
- Tax Benefits: Tax deductions under Section 80C.
- Website: India Post
Example: If a senior citizen invests ₹5,00,000, they will earn ₹41,000 each year. This scheme is perfect for older adults who need regular income after retirement and best government investment schemes for senior citizens.
More Detail :
- Minimum deposit ₹1000/- & in the multiples thereof with maximum deposit of ₹30 lacs.
- An individual who has attained the age of 60 years or above on the date of opening of an account or an individual who has attained the age of 55 years or more but less than 60 years and has retired under Superannuation, VRS or Special VRS, can open an account.
- Retired personnel of Defence Services (excluding Civilian Defence employees) may open an account on attaining the age of fifty years subject to the fulfilment of other specified conditions.
- A depositor may open an account individually or jointly with spouse.
- Interest shall be payable from the date of deposit to 31st March/ 30th June/30th September/31st December on 1st working day of April/July/October/January as the case may be, in the first instance and thereafter, interest shall be payable on 1st working day of April/July/October/January.
- The account can be closed after expiry of 5 years from the date of opening of account.
- The depositor may extend the account for further period of 3 years.
- Premature closure is permissible subject to certain conditions.
- Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.
4. Public Provident Fund (PPF)
- Current Interest Rate: 7.1%
- Maturity Period: 15 years
- Tax Benefits: Tax deductions under Section 80C; interest is tax-free.
- Website: SBI PPF
Example: If you invest ₹1,50,000 every year for 15 years, you will accumulate around ₹45,00,000, considering the interest rate. Plus, you won’t have to pay any tax on the interest earned!
More Details
- Minimum deposit ₹ 500/- & Maximum deposit ₹ 1,50,000/- in a Financial year.
- Loan facility is available from 3rd financial year upto 6th financial year.
- Withdrawal is permissible every year from 7th financial year.
- Account matures on completion of fifteen complete financial years from the end of the year in which the account was opened.
- After maturity, account can be extended for any number for a block of 5 years with further deposits.
- Account can be retained indefinitely without further deposit after maturity with the prevailing rate of interest.
- The amount in the PPF account is not subject to attachment under any order or decree of a court of law.
- Deposit qualifies for deduction under Sec.80-C of I.T.Act.
- Interest earned in the account is free from Income Tax under Section -10 of I.T.Act.
Aslo Read : Top 6 Signs That Show You’re Becoming Rich
https://thebullbook.in/signs-thats-show-youre-becoming-rich/
5. National Pension System(NPS)
- Current Interest Rate: 9% – 12%
- Maturity Period: Varies (till retirement)
- Tax Benefits: Tax deductions under Section 80C; additional tax benefits up to ₹50,000.
- Website: NPS
Calculator : NPS Calculator : National Pension System https://thebullbook.in/nps-calculator-national-pension-system/
Example: If you contribute ₹10,000 every year to NPS and earn an average of 10% interest, you could have around ₹25,00,000 by the time you retire!
Useful Websites :
- Ministry of Finance: finmin.nic.in
- India Post: indiapost.gov.in
- National Pension System: npscra.nsdl.co.in
Other Savings Schemes by Gov. of india
| Savings Scheme | Rate | Tax Deduction on principal? | Interest Taxable? |
| Post Office Savings Account | 4.0% | No | Yes |
| Post Office Recurring Deposit | 6.7% | No | Yes |
| Post Office Monthly Income Scheme | 7.4% | No | Yes |
| Post Office Time Deposit (1 year) | 6.9% | No | Yes |
| Post Office Time Deposit (2 year) | 7% | No | Yes |
| Post Office Time Deposit (3 year) | 7.1% | No | Yes |
| Post Office Time Deposit (5 year) | 7.5% | Yes | Yes |
| Kisan Vikas Patra (KVP) | 7.5% | No | Yes |
| Public Provident Fund (PPF) | 7.1% | Yes | No |
| Sukanya Samriddhi Yojana | 8.2% | Yes | No |
| National Savings Certificate | 7.7% | Yes | No |
| ELSS (Equity Linked Savings Scheme) | Market Linked | Yes | Yes# |
| NPS (National Pension Scheme) | Market Linked | Yes | Yes** |
| Tax Saving FDs | 8.25%* | Yes | Yes |
| Senior Citizens’ Saving Scheme (SCSS) | 8.2% | Yes | Yes |
