Are you seeking to spend money on a protected monetary instrument for a long run funding? Besides fastened deposit (FD), bonds or debt mutual funds, one can spend money on a publish workplace small financial savings scheme. Among all these choices, one of many well-liked small financial savings scheme is public provident fund (PPF).
Investment in public provident fund affords 7.1 % every year to buyers. The minimal funding one could make is ₹500 and the utmost is ₹1.5 lakh every year.
Investors are allowed to go for one withdrawal throughout a monetary 12 months after 5 years excluding the 12 months of account opening. This means if an account was opened throughout 2010-11, the withdrawal might be taken throughout or after 2016-17. The quantity of withdrawal might be taken as much as 50 per cent of stability on the credit score on the finish of 4th previous 12 months or on the finish of previous 12 months, whichever is decrease.
However, one can determine to spend money on different small financial savings schemes equivalent to given beneath.
Other small financial savings scheme in addition to PPF
Post workplace financial savings account: It affords 4 % curiosity every year. The minimal quantity that one can make investments is ₹500 to open the account.
National Savings Recurring Deposit: It affords 6.7 % curiosity on deposits. The minimal contribution to recurring deposit is ₹100 monthly.
National Savings Time Deposit: One can open a National Savings time deposit by depositing a minimal of ₹1,000. There are 4 tenures of this residue.
1-year-time deposit: It provides 6.9 per cent curiosity every year
2-year time deposit: It affords 7 per cent curiosity every year.
3-year time deposit: This affords 7.1 % every year.
5-year time deposit: This affords 7.5 per cent every year.
National Savings month-to-month earnings account: This account affords 7.4 per cent every year payable month-to-month. The minimal one can make investments on this scheme is ₹1,000.
Senior Citizen Savings Scheme: This scheme affords 8.2 % curiosity every year. And one could make a deposit of ₹1,000 and most upto ₹30 lakh.
Sukanya Samriddhi Account: One will get to earn 8.2 % every year. One can make investments anyplace between ₹250 to ₹1.5 lakh in a single 12 months.
(Source: indiapost.gov.in)
National Savings Certificate (VIIIth concern) (NSC): One will get to earn 7.7 % compounded yearly however payable at maturity on NSC. The minimal funding is ₹1,000 and in multiples of ₹100. There isn’t any most restrict.
Kisan Vikas Patra: It affords 7.5 % compounded yearly. The minimal funding is ₹1,000 and in multiples of ₹100 whereas there isn’t a most restrict.
Mahila Samman Savings Certificate: This scheme affords an curiosity of seven.5 % every year. The deposit might be made for an quantity between ₹1000 and ₹2 lakh.