Best Investment Plans for 2019

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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Best Investment Plans for 2019

Below mentioned are the top 5 government run investment plans for 2019:

1) Public Provident Fund (PPF)

What is 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

• Tenure: Minimum of 15 years and can be increased in block of 5 years post that.
• Investment Limit: You can invest between Rs 500 to Rs 1.5 Lakhs per year.
• Opening Balance: The account can be opened by depositing Rs 100. Yearly investments of Rs 1.5 Lakhs and above earn no interest.
• Deposits Frequency: Minimum one deposit per year for 15 years.
• Mode of deposit: You can make deposits by cash, cheque, DD or NEFT. ECS can be enabled too.
• Nomination/Beneficiary: A nominee / beneficiary can be mentioned at the time of opening PPF account.
• Joint account: Joint accounts are not allowed in PPF. Only one individual can operate a PPF account.
• Risk: PPF is a government run scheme offering guaranteed returns,
• Who can invest in PPF: Any Indian citizen can open a PPF account. NRIs are not allowed.
• Loan against PPF:  You can avail loan against 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.

How to Open NSC account?

You can open an NSC account with the nearest post office.

Features of NSC

• Fixed regular income: By investing in NSC, you get guaranteed returns of 7.6% on annual basis.

• Tax benefits: Investing in NSC offers tax deductions; NSC is covered under Section 80C of income tax act.
• Start small: You can start investing as low as Rs 100 and increase the amounts later on.
• Maturity period: Maturity period is 5 years.
• Loan collateral: You can pledge NSC as a collateral / security for a loan.
• Nomination: Investor can nominate a family member (even a minor), so that they get the money in the unfortunate event of investor’s demise.
• Premature withdrawal: Premature withdrawals are not allowed. It is allowed if the investor dies.

SEE ALSO:  What is NSC?

3) Post Office Monthly Income Scheme (POMIS)

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.

How to Open a POMIS account?

To open a POMIS account, you must visit the nearest post office with relevant documents.

Features of POMIS

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.

How to Open POTD account?

To open a POTD account, you must visit the nearest post office.

Features of POTD

• Eligibility: All resident Indian citizens can open a POTD account.

• Nominee:  You can mention nominee / beneficiary at the time of opening POTD account.
• Number of accounts: There is no limit on the number of accounts that can be opened under the POTD scheme.
• Interest: The rate of interest offered on POTD investment is higher than that of the fixed deposit.
• Maturity: On maturity, you can withdraw or reinvest in POTD.
• Premature withdrawal: You are allowed to make premature withdrawals but subject to terms and conditions.
• Tax benefits: Investments in POTD are covered under Section 80C of the income tax act.

5) Senior Citizens Savings Scheme (SCSS)

What is SCSS?

The senior citizens savings scheme SCSS, is designed for senior citizens of India. SCSS offers regular income and tax benefits.

How to Open SCSS Account?

An SCSS account can be opened by visiting any authorized banks or post offices with requisite documents.

Features of SCSS

• Investment is safe: SCSS is a government run scheme and hence is it one of the safest investment options available.
• Returns: The rate of returns offered on SCSS is more than that of a fixed deposit.
• Nominee: You can mention a nominee or a beneficiary at the time of opening a SCSS account.
• Tax benefits: Investing in SCSS offers tax benefits as it is covered under Section 80C of income tax act.
• Tenure: You can invest for 5 years and extend the investment for 3 years.

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