A number of schemes are launched but the schemes which help you to become the self-independent are the saving schemes. The saving scheme is launched by keeping in the mind to cover all age groups whether they belong to the younger age group or the adult or the older age group each will get the benefit of the Government saving scheme. The people who not have a job or get retired after the job then he /she should have the saving which can be used in the later age and he/she can spend rest of the life smoothly. The government saving yojana will do the same.
To know more about the different Government saving schemes, you should read the article below as the article will help you to know about the saving schemes why should we prefer them, what can be their long-term benefits which you will only come to know if you will go through the article on the page on Government saving schemes.
Advantages of Saving Schemes in India
The following mentioned are the advantages of the government Saving yojana, which will tell you why and how important are the saving schemes. Check the advantages below:
- Readily Available-The Government of India is continuously aiming for the betterment of the people so are the schemes launched by them, not only the government even the private banks have started such saving schemes where the people can easily enroll themselves to get the benefit of the schemes.
- Long-Term Planning– The Government saving scheme best part is that they are long-term schemes and have the benefit if you get attached to the scheme for a longer period of time. For eg, if you have the saving scheme then you need not worry about the
- Wide Ranges of Products– Various government saving scheme options are available such as the public provident funds for the employed and agriculture saving schemes such as Kisan Vikas Patra.
- Easy to use- The major benefit of the government saving schemes is that they are so simple one can understand the criteria and then easily avail the benefit of the scheme.
Types of Government Saving Schemes in India
The following are the type of the Government saving scheme which the aspirants can make use if they are interested to apply for and the details about them will be explained to you in the article.
- National Savings Certificate (NSC)
- National Savings Scheme(NSS)
Both of the schemes have been very popular and most of the people are making use of the government saving schemes. The other major benefit to avail the scheme is the security which increases the reliability of the schemes in terms of return.
Features of Government National Savings Certificate
- There is no limit for the investment.
- 0% TAX deduction for the scheme.
- Impressive interest rate it can vary from 8.50 to 8.80 % depending upon the type of NSC issued to you.
- The policy is tax savings for investments for more than Rs.1,00,000 per annum as per the Income Tax Act 80C.
- As per the scheme, the return investment is so nominal the people can easily Rs.100 will yield Rs.234.35 in 10 years.
- The certificates in the schemes can be easily transferred from one person to another.
- The NSC portfolio tenure is from 5 to 10 years as per the NSC.
- It can be used as the collateral if you want to apply for the bank loan.
Features of Government National Savings Scheme
- The income tax is exempted if you earn the interest of Rs.9,000.
- The interest is compounded annually.
- Interest rates provided are very impressive 8 to 9%, it can vary.
- The 4-year tenure for the NSS portfolio.
Public Provident Fund (PPF)
The Public Provident Fund is a tuned saving in general or tax saving particular PPF was National Saving Institue according to the Finance Ministry of India. The PPF schemes have the following features and benefits which make the scheme more popular.
- The interest rate is compounded Annually at the rate of 8.70%.
- Minimum investment for the Rs.500 to a maximum of Rs.1,50,000.
- The maturity period for the PPF scheme is 15 years.
- It can be extended to an extra 5 years if you wish.
- Minimum yearly investment of just.
- A maximum deposit of 12 can be made in the financial year.
- PPF is not possible for the joint accounts.
- The PPF account can only be closed after the Maturity period.
- Accumulated interest at the PPF is completely free of tax.
- PPF accounts work under the Income tax act 80c
- The applicant is also eligible to get the loan after the 3 years on the PPF using it as collateral.
Atal Pension Yojana
The Atal Pension Yojana becomes most popular in India. The Government saving yojana for people after retirement. The scheme was launched to help the people of the weaker section for providing them the benefit of a pension, the scheme is for those people who are working in the unorganized offices or sectors which don’t offer any pensions after retirements. The Atal Pension Yojana has the following mentioned features.
- Reliable, fruitful and easily accessible scheme.
- The people of India who are from the age groups of 18-40 can apply for the scheme.
- The premium is required to be paid regularly for the period of 20 years.
- As most of the individuals adopt for the pension after the age of 60 years but the scheme will also apply for the people above 40 years.
- The aspirants who want to apply the scheme should have an active bank account.
- The Atal Pension yojana depends on the tenure of the premium paid highest the premium and regular more will be the pension thereafter.
Senior Citizens Savings Scheme (SCSS)
The senior citizen saving scheme is the scheme is only limited or we can say the scheme will focus on the senior citizen of the country. The applicant must be above the age 60 years of age or the people who have retired or opted for the VRS are also eligible to apply the scheme and they can apply even if their age is between the 55 to 60 years. Under the scheme, an account of the applicant is opened within a month and then he will be issued the receipt as acknowledgment as soon as he applies for the account so then he can easily avail the benefit of the scheme under the senior citizen saving scheme. This was a key step as under the government saving yojana.
The features of the Senior citizen saving scheme are as follows you can check them to know more about the scheme for the senior citizens:
- The interest rate under the SCSS scheme is 9.3% it can vary according to the changes of the government.
- The tenure of the portfolio is 5 years for the Senior citizen saving scheme.
- The applicant is applying to make a deposit under the scheme. The amount deposits should be the multiples of the 1000 and it should not be above the Rs 15 lakh.
- The applicant is also provided with the benefit of transfer as you can transfer your account from one bank or post office to other according to your need.
- The SCSS account also has of other advantages that you can close the scheme prematurely and you would be provided the 1.5% on your deposit for the 1st year and 1.0% for the 2nd year.
- After the maturity of the scheme, you can also extend the scheme for 3 more years. After the year of the extension, the account will be closed prematurely without any charges.
- TDS is deducted from the account if your interest exceeds Rs.10,000 per annum.
- SCSS accounts also follow the Income Tax Act, 1961. as per the Section 80C
Kisan Vikas Patra (KVP)
The scheme Kisan Vikas Patra abbreviated KVP is another saving scheme offering the benefit in the Indian Postal Department. The is one of the successful schemes of the time as initially misused and terminated 2011 and again in the year 2014, it gain the popularity.
The features of the scheme Kisan Vikas Patra are pointed below for your guidance.
- The amount of money invested gets doubled in 100 months means 8 years and 4 months.
- KVP Kisan Vikas Patra is available in all the following denomination deposits Rs.1000, Rs.5000, Rs.10,000 and Rs.50,000.
- The minimum purchase value is fixed as it should not be below Rs.1000 and it can be maximum and no boundation for the same.
- The Kisan Vikas Patra works like the post office scheme across India in all the post offices.
- The certificates or the scheme can be encashed prematurely if needed and you can get it encashed in 2 ½ years from the point of issuance.
- The Kisan Vikas Patra saving scheme can be transferred from one post office to other as well as from one person to another.
Post Office Savings Scheme
The Post Office saving scheme is another government saving scheme. The post office is the approachable to the people as they have been set up in the area nearby for the people to avail the service. The post office schemes are customer friendly.
- Post Office Savings Account
- Post Office Recurring Deposit Account (5 Years)
- Post Office Time Deposit Account
- Post Office Income Account Scheme(Monthly)
- Senior Citizens Saving Scheme
- Public Provident Fund Account 15 Years
- National Savings Certificates
- Kisan Vikas Patra (KVP)
- Sukanya Samriddhi Account
Sukanya Samriddhi Yojana
The Sukanya Samriddhi Yojana, another government saving yojana Account was opened for the girls as the scheme will aim for the girls offered by the Indian Ministry of Finance. The aim for such as a scheme is to ensure the bright future of the girl child. The scheme was launched by the Prime Minister of India, Mr. Narendra Modi, This is the fastest emerging government saving scheme. The scheme has provided the financial help or backing for the girl child.
The following are the features of the scheme, check them below.
- Attractive interest rates are provided to the people under the scheme as the scheme Sukanya Samriddhi will offer you the interest of 9,2% per annum.
- The account can be opened in the banks as well in the post offices across the country.
- The opening charges or the deposit for the Sukanya Samriddhi is Rs. 1000.
- You have to deposit then the amount or the denomination which should be the multiples of the scheme.
- The minimum amount of deposit for the scheme is Rs. 1000 and the maximum amount is Rs.1,50,000 per year
- The SSY accounts, the benefit can be attained only when the girl achieve the age of 21.
- The account holder has to pay the deposit for the 14 years.
- The Sukanya Samriddhi Yojana can be transferred from one bank or post office to other.
National Pension System (NPS)
The national saving scheme will help you to cope with the circumstances and financial guidance to you to live an easy life after the retirement. The national saving scheme is started for the same aim to offer the individuals with the security to the people in the form of pension to them. The small investment today can make your life easy after the retirement and you can live the life without any fears of expenses of the day to day life if you have availed the National pension scheme. You just have to pay the premium in a small amount for the scheme but later it will provide you with the long-term benefit.
