Government Deposit Schemes – Govt Schemes – Personal Banking
- National Pension Scheme. More Information.
- Public Provident Fund. More Information.
- Capital Gains A/C Scheme. More Information.
- Gold banking. More Information.
- Senior Citizens Savings Scheme. More Information.
- Sukanya Samriddhi Account. More Information.
- RBI Bonds. More Information.
Saving Schemes in India [Government Deposit Schemes]
Putting money into savings plans can also assist in paying for the children’s education and marriage. Investing in such plans can generate extra revenue in addition to being a disciplined approach to save money. There are also a variety of minor savings plans, where the contribution is lower but the cumulative contribution over time will be higher.
Savings plan investments have extremely little risk because the government often creates them. Savings plan contributions are safe and secure in addition to offering significant rewards. The government sets the interest rates for savings plans, which change every three months to a year.
Benefits of Savings Programs
The following is a list of the key benefits of investing in savings plans:
By making investments in savings plans, people can attain their long-term objectives, such as retirement plans, children’s schooling, and children’s marriage.
Different savings plans:
There are many savings plans currently offered. The advantages differ depending on the sector and the plan. For instance, the Sukanya Samriddhi Yojana aids a female child financially, and the Pradhan Mantri Jan Dhan Yojana is intended to assist those who are living in poverty.
The majority of contributions paid to the programmes can be made online, and maintenance and investing are fairly straightforward. [Government Deposit Schemes]
Security and safety:
Because the programmes were established by the Indian Government, the payments paid to them are low risk and safe and secure.
many forms of savings plans
The following list includes some of the different available schemes:
Government Provident Fund (PPF)
One of the most well-liked and secure investing options in the nation is the Public Provident Fund (PPF) plan. Contributions paid to the plan and the interest earned on those contributions are both tax-exempt under Section 80C of the Income Tax Act.
The programme has a 15-year term and is open to both post offices and banks. The length of the programme may be extended by a person by an additional 5 years. For the fiscal year 2018–2019, the interest rate is 8% annually. additionally, interest is compounded annually. Individuals can contribute up to Rs. 1.5 lakh per year toward the scheme, with a minimum contribution requirement of Rs. 500. [Government Deposit Schemes]
Employees’ Compensation Fund (EPF)
The Employees’ Provident Fund Organization (EPFO) developed the EPF programme with the primary objective of assisting employees with retirement savings. Organizations with more than 20 employees are required to make EPF contributions. 12% of the employee’s Dearness Allowance (DA) and base salary are each contributed by the employee and employer to the scheme.
Employees may withdraw money from the plan in the event of a medical emergency, home building, land purchase, home loan repayment, etc. For the fiscal years 2018 and 2019, the scheme’s annual interest rate is 8.65%. The EPFO chooses the interest rate on an annual basis.
National Pension System (NPS)
The Central Government started the NPS with the primary objective of giving people a consistent income after retirement. By making a nominal premium payment, employees can profit from the programme.
At the time of retirement, employees will get a lump sum payment, and a specific percentage will be paid back as pension on a monthly basis. [Government Deposit Schemes]
Sukanya Samriddhi Yojana Account (SSY)
To support a girl child’s future, Prime Minister Narendra Modi introduced the Sukanya Samriddhi Yojana (SSY) programme. An SSY account can be created through post offices or banks, and the current interest rate offered by the system is 8.5%.
The scheme allows deposits of up to Rs. 1.5 lakh, or Rs. 1,000, at any time during the calendar year. The account holder must make payments to the scheme for a total of 14 years, and the scheme has a 21-year maturity term. People can move their SSY accounts back and forth between banks and post offices.
Atal Pension Yojana (APY)
The program’s primary goal is to assist people who live in poverty. People who labour in the unorganised sector and seek government assistance financially can benefit from the programme. Individuals contribute very little to the programme in exchange for a pension when they reach retirement age. However, in order to take use of the scheme’s benefits, people must have an open savings account. [Government Deposit Schemes]
The Atal Pension Yojana scheme is open to citizens between the ages of 18 and 40. A minimum of 20 years must pass between contributions to the plan. Individuals are required to contribute very little to the plan; yet, if substantial payments are made, the pension will also be substantial. People cannot choose any other savings plan if they choose the Atal Pension Yojana programme, nevertheless.
Voluntary Provident Fund (VPF)
The VPF plan is an optional option for employees. In contrast to the EPF system, which allows employees to contribute only 12% of their basic pay, the VPF scheme allows employees to contribute their entire basic salary.
The EPF scheme will be affected by any contributions made to the VPF programme, and vice versa. For the fiscal years 2018 and 2019, the interest rate on contributions to the plan is 8.65% per annum.
Kisan Vikas Patra (KVP)
The Kisan Vikas Patra certificate programme is made available by Indian post offices. The current interest rate provided by the plan is 7.7%, and it is compounded annually. There is no maximum donation amount; however, there is a minimum commitment of Rs. 1,000. The money contributed to the plan doubles over the course of 112 months. [Government Deposit Schemes]
The certificate can be transferred from one person to another and from one post office to another, and individuals are allowed to add nominees to the programme. After 30 months have passed since the certificate’s issuance, individuals may also cash it in.
Senior Citizens Savings Scheme (SCSS)
The SCSS was launched with the aim of helping individuals who are 60 years and above. Individuals who are between the ages of 55 years and 60 years and have chosen for Voluntary Retirement Scheme (VRS) can also avail the benefits of the SCSS.
The duration of the SCSS is 5 years and the rate of interest under the scheme is 8.7% p.a. Individuals must invest a minimum of Rs.1,000 towards the scheme and the maximum investment that can be made is Rs.15 lakh. Individuals can also transfer their SCSS accounts from a post office to a bank and vice versa. Under Section 80C of the Income Tax Act, tax deductions are available for investments made towards the scheme. [Government Deposit Schemes]
National Savings Certificate (NSC)
One of the most well-liked programmes in India is the NSC programme. The scheme offers assured returns and tax advantages because the Indian government is supporting it. Individuals can invest in the plan at post offices, and it has a 5-year term. The interest rates for the programme are set on a quarterly basis by the Indian government.
The scheme’s interest rate for the fiscal years 2018 and 2019 is 8.0%. Every year, the interest that is generated is compounded. There is no cap on the amount that can be contributed; however, there is a minimum payment of Rs. 100 required. Individuals are qualified for tax benefits on their contributions to the plan under Section 80C of the Income Tax Act. The certificate may be transferred to another person’s name by an individual. However, you can only do this once.
Post Office Savings Scheme
The numerous savings plans that India Post provides are highly well-liked because the risks are quite low and the majority of the plans offer guaranteed returns. Any saving scheme account can be opened at the post office with ease and speed. The schemes’ numerous beneficial qualities contribute to their popularity. [Government Deposit Schemes]
The savings schemes that are offered by India Post are mentioned below:
- Post Office Savings Account
- National Savings Time Deposit Account
- Senior Citizens Savings Scheme Account
- National Savings Certificate Account
- Sukanya Samriddhi Account
- National Savings Recurring Deposit Account
- National Savings Monthly Income Account
- Public Provident Fund Account
- Kisan Vikas Patra Account
[Government Deposit Schemes]