Top 7 Government schemes to invest in!

There are many schemes which Indian government has initiated to reinforce India’s economic development and financial stability of an individual. These schemes were introduced in order to provide financial support like bank accounts, financial security during emergency like death, education or loans if need be. Let us understand some of the available government schemes one can invest in:-

  1. Pradhan Mantri Jeevan Jyoti Bima & Surakhsha Bima Yojana

It’s a life insurance scheme provided and supported by the government of India. This scheme can be applied by any individual who is between 18 to 50 years of age with a minimum annual premium cost of INR 330/- with a death benefit of INR 2,00,000/- to the nominee. Whereas the Pradhan Mantri Suraksha Bima Yojana will offer a renewable one-year accidental death cum disability cover of Rs 2 lakh at INR 12/- as an annual premium. The insured will get Rs 1 lakh in case of partial permanent disability.

  1. Sukanya Samriddhi Account

Sukanya Samriddhi Account is a part of government’s Beti Bachao aur Beti Padhao movement, it was launched on 22nd January 2015. One gets an annualized 9.1% returns on investing in to this scheme, the same rate has been increased to 9.2% for the financial year 2015-16. The interest rate offered under the scheme is subject to revision and will be compounded every year.

  1. Atal Pension Yojana

This scheme is intended to provide pension benefits like social security with a minimum contribution per month. Those who work in a private sector industry or employment can opt for a fixed pension of INR 1,000 to 5,000 when they turn 60 years old. On the death of the contributor, the spouse or the nominee can claim the pension money & the accumulated corpus. But this scheme is only for those who are not eligible for tax or who are in the low income group; so you can help people in the low strata of society like your security guards/drivers or maids invest in these schemes.

  1. Mutual Funds ELSS

Are you aware of the fact that you can get tax benefits by investing in Mutual Funds? Yes, tax benefit u/s 80C is allowed for an investment in specically designed Mutual Funds schemes which is called ELSS (Equity-linked savings scheme). You can save up to Rs 1.5 Lakhs u/s 80C and also get a chance to earn potentially higher amout of returns on your investments with the lowest lock in period of only 3 years as compared to any other tax saving investment schemes.

  1. Pradhan Mantri Jan Dhan Yojana

Under this scheme financial services like Bank’s Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension etc. is provided to those who are from rural area and do not have access or does not have any bank account.

The scheme also offers an overdraft facility of INR 5000 along with a RuPay Debit card with inbuilt accident insurance cover of INR 1 lakh and RuPay Kisan Card.

  1. National Pension Scheme

It is a voluntary pension scheme that is regulated by Pension Fund Regulatory & Development Authority (PFRDA) and introduced with an aim to provide for retirement needs. The best part of this scheme is that it also offers tax benefits u/s 80CCD of Income-tax Act, 1961 within an overall limit of INR 1,50,000/- as prescribed u/s 80C. in the last budget an additional deduction up to INR 50,000/- is also allowed for contribution made towards NPS. This made the total deduction under section 80CCD to INR 2,00,000/-.

  1. Public Provident Fund (PPF)

PPF  is one of the best government backed long term small savings scheme which was introduced to help people save for retirement specially for those who are self employed.  One can invest up to INR 1,50,000/- p.a. in their PPF account and also avail tax benefits u/s 80C of Income Tax Act. One can also open  PPF accounts in the name of their spouse and children and the best part is the tax free returns on the maturity, which makes it a great investment tool.

As seen above, different schemes offer different returns and caters to various strata of our society so invest wisely before investing in any of these schemes to optmise your returns as well as tax benefits.


Happy Diwali & Happy Investing!

Leave a Reply

Your email address will not be published. Required fields are marked *