8 Small Saving Schemes to Reap Big Benefits

‘Save money and money will save you’ is the only shortcut mantra to build a strong financial future for you and your family. It’s not your salary that makes you rich, it’s your habit of saving that decides your path.

There are many options available that would help you increase your wealth. The Economic Times has collected some of the government schemes that you may find easy and safe to start with.

Let’s explore:

# Post Office Monthly Income Scheme: Post Office Monthly Income Scheme (POMIS) is one of the safest schemes to invest as it assures guaranteed return on your investment. This scheme is offered by the Indian postal service to help individuals to earn substantial returns with a short locking period.

Often urban investors are reluctant t o make investments under POMIS. The maturity period for this scheme is 5 years and it is offered with an interest rate of 8.4 percent. You can start opening your account with minimum of  1,500 to a maximum limit up to 4.5 lakh in a single account and  9 lakh in case of a joint account.

# Kisan Vikas Patra: The government of India has initiated Kisan Vikas Patra scheme for the investors who aspire to double their money. This scheme allows you to double your money in hundred months or 8 years and 4 month.

Kisan Vikas Patra can be a profitable option for people who fall in lower income status and who don’t get access to other regular financial products. It offers an attractive and secure interest rate of 8.7 percent and has a lock in period of 100 months.

# Public Provident Fund : Public Provident Fund or PPF is a long term debt scheme introduced by the Indian government. You can get tax benefits if you invest in PPF account. An investment in PPF will offer you 8.7 percent of the interest rate.

In PPF your returns are compounded. This means you can not only earn returns on the money you invested but you can even earn interest on the interest earned. This is an additional advantage of this scheme which makes its special than others.

# 10 Year National Savings Certificate: The 10 Years National Savings Certificate is a popular and a safe small savings instrument. It is issued by the post offices in India. It offers assured benefits and tax returns. 

This scheme offers a risk free saving option to the investors. The interest rate of NSC is 8.8 percent and it has a maturity period of 10 years. You can start with a minimum deposit of  100. There is no maximum limit to invest in NSC.

# Senior Citizens Savings Scheme: Senior Citizens Savings Scheme offers higher returns to the investors. The rate of interest earned in this scheme is 9.3 percent.

The scheme comes with a maturity period of five years. The most interesting thing in this scheme is the interest is paid out every quarterly during the tenure. This small saving scheme offers secure returns with an investment limit of  1,000.

# 5 Year National Savings Certificate: 5 Year National Savings Certificate offers 8.5 percent of a rate of interest to the investors. Under the Section 80 C, NSC scheme allows you to claim for tax deduction benefits up to  1.5 lakh.

With 5 years of lock in period, this scheme proves to be one of the safest and easiest investment option for the individuals who want to make benefit s within a short span of time.

# Sukanya Samridhi Yojna: The Sukanya Samridhi Yojna was initiated by the Honorable Prime Minister Narendra Modi with an aim to promote girl child education and her marriage expenses. This small deposit scheme for a girl child fetches a rate of interest of 9.2 percent till the child turns to 21 years of age.

The account can be opened at any time from the birth of the baby girl till she attains the age of 10 years. This scheme encourages parents to send their daughters to study and brighten their future.

# 5 Year Post Office Time Deposits: 5 Year Post Office Time Deposits is a scheme offered in the post offices in India. This scheme offers 8.5 percent of the rate of interest with a lock in period of five years.

An investor can open an account with a minimum investment of  200. It has no maximum limit instead investments done should be in the multiples of  200.

With all of the above saving options, the government aims to encourage people to contribute a small amount of their incomings towards savings, to make a healthy and wealthy India. Let’s come together and join hands in this endeavor to make more money for a better and secured future.