Saving money is a stepping stone towards funding various life events. The money you save and then invest comes in handy when purchasing a house, vehicle, children’s education, marriage and so on. There are lot of private and government savings cum investment schemes. Indians traditionally prefer investing in government run schemes over the private schemes, citing the safety of their funds.
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Below mentioned are the top 5 government run investment plans for 2019:
1) Public Provident Fund (PPF)
Public Provident Fund, PPF, was started in the year 1968. PPF was started with an objective of mobilizing small savings in the form of investment with returns. PPF enables employees to plan their retirement. PPF is a tax saving investment scheme covered under Section 80C of the income tax act. PPF is a very safe investment plan with guaranteed returns.
How to open a PPF account: You can open a PPF account in a post office or with any nationalized bank. Even a few private banks like ICICI, Axis and HDFC banks are authorized to operate PPF accounts.
SEE ALSO: What is PPF?
Features of PPF
2) National Savings Certificate (NSC)
What is NSC?
National savings certificate NSC, is a fixed income government run investment scheme, that can be opened at post office. Investing in NSC offers tax benefits. The maturity of NSC is 5 years.
You can open an NSC account with the nearest post office.
Fixed regular income: By investing in NSC, you get guaranteed returns of 7.6% on annual basis.
SEE ALSO: What is NSC?
What is POMIS: Post office monthly income scheme POMIS, is an investment scheme under which you invest a certain amount on a regular basis to earn a fixed interest each month.
To open a POMIS account, you must visit the nearest post office with relevant documents.
Safe investment: Your investment is safe as POMIS is a government-backed scheme.
Tenure: The lock in period for POMIS is 5 years. You can either withdraw or reinvest when the investment matures.
Small investments: You can start investing as low as Rs 1,500 a month and then increase.
Guaranteed Fixed Returns: Investing in POMIS offers fixed monthly returns throughout the tenure.
Tax: POMIS is not covered under Section 80C of income tax act. Interest earned on POMIS is taxable as per your tax slab.
Eligibility: Only resident Indians can open POMIS accounts.
Multiple account Ownership: You can invest in more than one POMIS account but the overall investment across all POMIS accounts must not exceed Rs 4.5 Lakhs.
Joint Account: POMIS accounts can be operated jointly with 2 or 3 individuals.
Nominee: The investor can nominate a beneficiary or nominee, to whom the funds would be directed if the investor dies within the term of investment.
4) Post Office Time Deposit Scheme (POTD)
What is POTD?
Post office time deposit scheme, POTD, is a popular alternative to bank fixed deposit. POTD is an investment offered by post office which allows you deposit a fixed sum of money to earn guaranteed returns over the term of the deposit. The tenure of investment ranges between 1 to 5 years.
To open a POTD account, you must visit the nearest post office.
Eligibility: All resident Indian citizens can open a POTD account.
5) Senior Citizens Savings Scheme (SCSS)
The senior citizens savings scheme SCSS, is designed for senior citizens of India. SCSS offers regular income and tax benefits.
An SCSS account can be opened by visiting any authorized banks or post offices with requisite documents.
Features of SCSS
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