Top 5 National Savings Schemes Worth Your Money

Inflation has both pros and cons, but for a developing country, it takes extra effort to overcome, right? If you are smart enough to invest in savings schemes, it will be fine for you. Now, among a range of them, investing your hard-earned money in one scheme is a big decision.

Therefore, considering the rising costs, let’s discuss secure investments that the government offers. Different national savings schemes are made available by the government in collaboration with top insurance providers. Continue reading further to learn about these schemes and how to choose the best one.

What are National Savings Schemes?

Investment instruments backed by the Indian Government that serve as savings are called National Savings Schemes.

The idea behind such schemes is to encourage citizens to maintain a habit of saving and mobilising funds for national development simultaneously. They offer several advantages, some of which are mentioned below:

1. Because the government stands behind them, these investments are considered relatively safe.
2. With national savings schemes, fixed interest rates—in contrast to market-based investing—ensure income predictably attached to your principal.
3. Many of these savings schemes, therefore, qualify under Sec 80C of the Income-Tax Act as a deduction from the tax you owe.
4. These schemes can be easily opened at post offices or via authorised online insurance providers.

5 Best Saving Schemes Worth Considering

• Public Provident Fund (PPF)

The PPF is an excellent choice for those searching for a long-term savings scheme. It is a feasible solution for many, as it offers impressive interest rates and tax benefits.

PPF amounts invested can be added to the investor’s annual income tax and reduced according to Section 80C of the Income Tax Act. 

This savings plan has a maturity period of 15 years, although it can be extended by a tenure of 5 years. Therefore, it’s one of the best savings schemes for those who desire a secure alternative for future family requirements, like savings for their children’s education.

• Sukanya Samriddhi Yojana Account

This government savings scheme deliberately caters to the needs of young girls. It guarantees a competitive rate of return on even modest monthly installments. Parents have until their daughter’s tenth birthday to establish this account and can contribute periodically until her eighteenth year. 

Upon reaching adulthood at twenty-one, her investment will fully mature. With its focus on female empowerment through education, this program is an exemplary method for strengthening tomorrow’s women while also cultivating familial prosperity.

• Kisan Vikas Patra (KVP)

This is one of the best savings schemes that offers farmers an opportunity to earn stable returns over the medium term.

Tailored for those involved in agriculture and allied industries, it guarantees a set rate of profit for roughly a decade. This is with investments locked in for ten years and four months through the Kisan Vikas Patra. 

This option ensures predictable gains for those seeking safety within a mid-range time frame. Unlike other volatile alternatives, the program delivers assured rewards for cultivators and others in the agricultural sector, hoping to plan resources years in advance.

• Senior Citizen Savings Scheme (SCSS)

As our later years approach, planning for financial security grows ever more pressing. This national savings scheme, aptly titled, addresses precisely that concern for elders amongst us marching towards their sixth decade.

Offering both competitive returns and minimal risk, it opens doors to a harbour of steady gains and peace of mind.

• National Savings Certificate (NSC)

Available in denominations ranging from Rs. 100 to Rs. 1,00,000, NSC is a popular savings scheme that offers guaranteed returns with a fixed interest rate.

The investment period for NSC can be 5 years or 10 years. This scheme provides a good balance between safety, regular income (interest is paid at maturity), and capital appreciation.

Have You Invested in a National Savings Scheme Yet?

When the discussion is about safe financial savings, many national savings schemes enter the picture as a hero.

While there are many schemes, their interest rates also differ, and each saving instrument has its unique benefits. When you choose to apply for them, partner with a trusted insurance provider like Canara HSBC Life Insurance.