To promote the habit of investing in people, the central government has launched dozens of savings and pension schemes, by investing in which you can get a definite return. These schemes are risk free due to the government’s issuance, that is, there is no risk of investors losing money. Among the investment schemes issued by the government are several schemes like Public Provident Fund, Sukanya Samriddhi Yojana, Atal Pension Yojana, Government Securities, Sovereign Gold Bond, National Savings Certificate. You can also save tax by investing in them. These are the 5 best government saving schemes for the year 2021…
Government Securities (G-Sec)
Government Securities (G-Sec) are the safest investment option available in the market. Government securities attract a lot of risk-averse investors due to sovereign guarantees. But due to lower risks, returns from government securities are lower. Government securities include cash management bills (CMBs), treasury bills (T-bills), dated government securities, and state development loans (SDLs). T-bills are issued by the Central Government as money market instruments for a short term with a maturity period of less than 1 year (usually 91 days, 182 days, and 364 days). These are not paid interest like other government securities. Instead, they are issued with a discount on the face value and redeemed at face value on maturity. It does not bear TDS. G-Sec can be easily traded in the secondary market.
Prime Minister Jeevan Jyoti Bima Scheme
Pradhan Mantri Jeevan Jyoti is a term insurance plan of the government. Term plan means that the insurance company pays the insurance amount only after the death of the policyholder. If the policy holder stays well even after the completion of the Jeevan Jyoti Bima plan, then he does not get any benefit. The biggest feature of this scheme is that it has a validity of one year and renews every year. If the insured dies due to some reason, the nominee gets Rs 2 lakh. For this, he has to pay only 330 rupees. This scheme can be taken by any Indian citizen between the age of 18 -50 years.
Sovereign gold bond
Instead of buying physical gold, you can invest in sovereign gold bonds. It has many advantages. Sovereign gold bonds earn a fixed interest of 2.50% every year on the issue price. This money is automatically transferred to your bank account every 6 months. You do not get this kind of advantage over Physical Gold and Gold ETFs. The maturity period of SGBs is 8 years. But investors can opt-out after 5 years if they wish. You can also use sovereign gold bonds as collateral while taking a loan. Apart from this, these bonds also trade on the NSE. If a capital gain is made on the maturity of the gold bond, it is also exempt. You can also use sovereign gold bonds as collateral while taking a loan. Apart from this, these bonds also trade on the NSE.
Sukanya Samriddhi Yojana
The Central Government has done this scheme to improve the future of Girl Child. Investments made under this scheme are exempt under section 80C of income tax. In Sukanya Samriddhi Yojana an account can be opened with just Rs 250. That is, even if you save 1 rupee per day, you can still take advantage of this scheme. In this, interest is being given at the rate of 7.6 percent. In this, up to 50 percent of the amount can be withdrawn for the expenses of higher education of the daughter. This plan is for girls up to 21 years of age or before their marriage.
Public provident fund
Public Provident Fund (PPF) is one of the most popular long term debt investment products available in India. One of the biggest advantages of PPF is that it gives guaranteed tax-free returns, which you do not get in other long term investment instruments like NPS, mutual funds. Investment up to Rs 1.5 lakh in PPF every year is tax-exempt under Section 80C of the Income Tax Act. Both the interest and maturity amount earned in PPF are tax deductible. Subscribers can take loans on PPF account at the appropriate interest rate. This is especially beneficial for those who want to apply for a short-term loan. PPF is the most suitable investment option for self-employed professionals and employees not covered by EPFO.