If you are someone who is looking to invest their money but are also not sure about taking the risk of the stock market and other plans, it may be tough for you to manage your investments. While shares and other liquid investments offer a higher rate of returns, the risks involved should also be considered before making any commitment. So, what do you with your money? For starters, you can look at government saving schemes to invest your money. These saving plans offer a stable growth rate and are a secure option.
To help you make your decision, we have shortlisted the top 3 saving schemes. The Sukanya Samriddhi Account, Senior Citizens Savings Scheme, and Public Provident Fund offer the highest return rates in the basket of small saving scheme offered by the government.
Sukanya Samriddhi Account
The Sukanya Samriddhi Account offers the highest rate of interest currently at 7.6%. Investment in this scheme can be made for two girl child and three, in case of twins. The investment scheme requires opening an account with a first of as low as Rs 250 and further deposits that are multiples of Rs 150. The scheme allows deposit up to 15 years from the date of opening of the account and has a maturity period of 21 years. The scheme allows investment of up to Rs 1.5 lakhs in one financial year. The interest rate of the Sukanya Samriddhi Account is revised annually.
Senior Citizens Savings Scheme
If you are a senior citizen and looking for a good scheme to invest your money, the SCSS could be an option for you. In case you have taken early retirement the age limit is 55 and in special cases for retired defence personnel, the required minimum age maybe 50 years. You can invest in this scheme with a minimum investment of Rs 1000 and further deposits can be in multiples of Rs 1000. The maximum investment allowed under SCSS is Rs 15 lakh and it offers a return rate of 7.4% currently. The interest rate of this scheme is revised quarterly. This scheme has a maturity period of 5 years, which can be further extended by 3 years.
Public Provident Fund
To invest money in the PPF, all you need to do is to open an account with a minimum Rs 500. The scheme has a maturity period of 15 years which can be further extended by 5 years. The annual investment allowed in PPF is set at Rs 1.5 lakhs. The government currently offers a return of 7.1 per cent annually and interest gets credited on March 31of every year. The interest rate of this scheme is revised annually by the government. It also offers tax benefits.