Small savings schemes are very popular among investors who do not want market risk. These may give less but stable and guaranteed returns as compared to equity or other products.
Double Your Money in Small Savings Scheme: There is uncertainty in the equity market due to inflation, rate hike cycle, Russia and Ukraine war, fears of sluggish growth in the economy. Investors are also getting negative returns in mutual funds. In such a situation, once again people are relying on fixed income or guaranteed returns schemes for investment. Small savings schemes are very popular among investors who do not want market risk. These include schemes like Bank or Post Office Fixed Deposit (FD), Recurring Deposit (RD), National Savings Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP). These may give less but stable and guaranteed returns as compared to equity or other products. If you invest here for a long period, then your amount is guaranteed to double.
NSC
Interest Rate: 6.8%
how long does it take for money to double
The interest rate on NSC is currently available at 6.8 percent per annum. If we use the Rule of 72 here (72/6.8 = 10.58 years) then it will take 126 months to double your money. The minimum investment in this scheme is Rs 1000, while there is no maximum investment limit. It has the facility of a single account as well as a joint account. Tax exemption is also available on investment under section 80C of the Income Tax Act.
PPF
Interest Rate: 7.1%
how long does it take for money to double
The interest rate on PPF is currently available at 7.1 percent per annum. If we use Rule of 72 here (72/7.1= 10.14 years) then it will take 120 months to double your money. The minimum investment in this scheme is Rs 500 per annum, while the maximum investment is Rs 1.50 per annum. It has the facility of single account only. The maturity period is 15 years. Tax exemption is also available on investment under section 80C of the Income Tax Act. The interest earned is completely tax free.
KVP
Interest Rate: 6.9% p.a.
how long does it take for money to double
Currently, the interest rate on KVP is 6.9 percent per annum. If we use the rule of 72 here (72/6.9 = 10.43 years) then it will take 124 months to double your money. The minimum investment in this scheme is Rs 1000 per annum, while there is no maximum investment limit. In this facility of joint account as well as single account. The maturity period is 124 months.
5 years TD
Interest Rate: 6.7% p.a.
how long does it take for money to double
The interest rate on Post Office Time Deposit (TD) is currently available at 6.7 percent per annum. If we use the rule of 72 here (72/6.7 = 10.74 years), then it will be found that it will take about 128 months to double your money. The minimum investment in this scheme is Rs 1000 per annum, while there is no maximum investment limit. In this facility of joint account as well as single account. The maturity period is of 5 years. Tax exemption is available on investment under section 80C of the Income Tax Act.
www.financialexpress.com