Best Saving Schemes in India

There are several Saving Schemes in India. Most of them are offered by Government of India and some are offered by Nationalized Banks of India. Today we will discuss about Best Saving Schemes in India.

01) PPF (Public Provident Fund) -

PPF is probably the Best Saving Scheme in India. It also gives you the Best Tax benefits. It is the best saving scheme for small Investors.

Invest in PPF A/c up to 1,00,000/- P.A. and get 100% exemption U/s 80C and also the Interest earned on it will be exempted. Rate of Intt. is 8 to 8.5%. Idly the PPF a/c not attached with any of your Liability by any other Deptt. The Locking period of Investment is 5 Year but you can withdraw whole amount after 15 year of A/c whether the amount deposit in 14th year, it means the locking period applicable up to 10 year.

02) Recurring Fixed Deposits -

the best tax saving scheme with 100% tax benefit and 100% safety is to invest in Tax saving FD for 5 years in any Nationalized Bank which gives more interest. (Around 8.5% now).
State Bank of India is giving 8.5%.

03) National Saving Certificates (NSC) -

National Savings Certificates (NSC) are certificates issued by Department of post, Government of India and are available at all post office counters in the country. It is a long term safe savings option for the investor. The scheme combines growth in money with reductions in tax liability as per the provisions of the Income Tax Act, 1961. The duration of a NSC scheme is 6 years.

04) National Savings Schemes (NSC) -

National Savings Scheme (NSS) offers an assured return and tax rebates under Section 88 of the Income Tax Act, 1961. The rate of interest is 9 per cent per annum, compounded annually.

NSS has a duration of four years as compared to NSC, which has a duration of six years. You can extend the duration of your NSS units thereafter if you so desire.

NSS does not offer the benefits of liquidity. There is no premature withdrawal facility except in case of the death of the holder. However, the interest accrued on NSS can be withdrawn at any point. The deposit (principal) can be withdrawn only on maturity of the instrument at the end of four years and the account can be closed at the discretion of the investor.

05) Post Office Time Deposit Scheme -

A Post-Office Time Deposit Account (RDA) is a banking service similar to a Bank Fixed Deposit offered by Department of post, Government of India at all post office counters in the country. The scheme is meant for those investors who want to deposit a lump sum of money for a fixed period; say for a minimum period of one year to two years, three years and a maximum period of five years. Investor gets a lump sum (principal + interest) at the maturity of the deposit. Time Deposits scheme return a lower, but safer, growth in investment.

06) Post Office Recurring Deposit Account (RDA) -

A Post-Office Recurring Deposit Account (RDA) is a Banking service offered by Department of post, Government of India at all post office counters in the country. The scheme is meant for investors who want to deposit a fixed amount every month, in order to get a lump sum after five years. The scheme, a systematic way for long term savings, is one of the best investment option for the low income groups.

07) Post Office Monthly Income Scheme -

The post-office monthly income scheme (MIS) provides for monthly payment of interest income to investors. It is meant for investors who want to invest a sum amount initially and earn interest on a monthly basis for their livelihood. The MIS is not suitable for an increase in your investment. It is meant to provide a source of regular income on a long term basis. The scheme is, therefore, more beneficial for retired persons.

08) Post Office Senior Citizen Scheme -

A new savings scheme called ‘Senior Citizens Savings Scheme’ has been notified with effect from August 2, 2004. The Scheme is for the benefit of senior citizens and maturity period of the deposit will be five years, extendable by another three years. Initially the scheme will be available through designated post offices through out the country.

09) Kisan Vikas Patra (KVP) -

Kisan Vikas Patra (KVP) doubles your money in 7 years and 3 months with the advantage of premature withdrawal. KVP is sold through all Head Post Offices and other authorised post offices throughout India. The rate of return is 9.75 per cent, compounded annually.

KVP accumulates money at a fixed rate, and your money doubles in 7 years and 3 months. But KVP is not meant for regular income. It is for those looking for a safe avenue of investment without the pressing need for a regular source of income.