If you are looking for ways to grow your money beyond traditional fixed deposits (FDs), there are several safe and profitable investment options offered by the government and financial institutions. These schemes not only provide better returns but also help you plan for emergencies and long-term financial goals.
1. Public Provident Fund (PPF)
- Type: Long-term government-backed savings scheme
- Tenure: 15 years (extendable in blocks of 5 years)
- Interest Rate: Around 7–7.5% (compounded annually, tax-free)
- Benefits:
- Safe and reliable with government guarantee
- Tax-free returns and tax deduction under Section 80C
- Ideal for retirement and long-term wealth building
2. National Savings Certificate (NSC)
- Type: Medium-term investment (5 years)
- Interest Rate: Around 6.8–7% (compounded annually)
- Benefits:
- Tax-saving under Section 80C
- Fixed and predictable returns
- Good for conservative investors looking for steady growth
3. sukanya Samriddhi Yojana (SSY)
- Type: government savings scheme for girl children
- Tenure: 21 years from the date of opening account
- Interest Rate: 7–7.6% (compounded annually, tax-free)
- Benefits:
- Promotes long-term savings for daughters
- Higher interest rate than FDs
- Tax benefits under Section 80C
4. Senior Citizens Savings Scheme (SCSS)
- Type: Scheme for retired individuals
- Tenure: 5 years (extendable by 3 years)
- Interest Rate: 7–8% (quarterly payout, tax applies)
- Benefits:
- Provides regular income for retirees
- Government-backed, low-risk investment
5. Post office Monthly Income Scheme (POMIS)
- Type: Fixed-income scheme
- Tenure: 5 years
- Interest Rate: 7% approx. (monthly payout)
- Benefits:
- Provides steady monthly income
- Safe government-backed scheme
- Good for those who want recurring income like a salary
Why These Schemes Are Better Than FDs
Scheme
Interest Rate
Tax Benefits
Liquidity
Ideal For
PPF
7–7.5%
Tax-free
Low
Long-term wealth building
NSC
6.8–7%
Tax-saving
Medium
Medium-term investment
SSY
7–7.6%
Tax-free
Low
Savings for daughters
SCSS
7–8%
Taxable
Medium
Retirees needing income
POMIS
~7%
Taxable
Low
Monthly income seekers
Key Takeaways:
- These schemes are government-backed and safe, unlike market-linked investments.
- They offer higher or comparable returns to FDs, often with tax benefits.
- Choosing a mix of long-term and medium-term schemes ensures financial security and liquidity.
Conclusion
Investing in these schemes allows your money to grow steadily while remaining safe. By diversifying across PPF, NSC, SSY, SCSS, and POMIS, you can ensure long-term wealth creation, regular income, and financial security without worrying about cash shortages.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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