Carlos Slim, a Mexican businessman, once said – Anyone who is not investing now is missing a tremendous opportunity. Investment is the art of making your money work hard to earn more money for you. The Indian government has also introduced a slew of plans to encourage people to invest and not merely leave their money sit idle in bank accounts. Let’s look at seven government schemes you can invest in:
1. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
This is an ideal life insurance scheme for those seeking an affordable life coverage. By paying a premium of Rs 330 every year, you get a life cover of Rs. 2 lakh. Thus, in case of policyholder’s death, the nominee is entitled to get the insurance amount. You can avail this scheme if you are in the age group of 18 to 50 years. Under PMJJBY, your life will be covered until the age of 55. All you need is a savings bank account with an auto-debit facility.
2. National Pension Scheme (NPS)
Once available to government employees only, this pension scheme is now open to all. You can plan your retirement by investing annually or monthly. Indian citizens and NRIs in the age group of 18 to 60 can subscribe to NPS. Under this scheme, you can allocate your funds in equity, corporate bonds and government securities. Additionally, you would also get a tax exemption of Rs 50,000 under Section 80CCD.
3. Public Provident Fund (PPF)
PPF is one of the oldest retirement-planning schemes launched by the government. The amount invested, interest earned and the amount withdrawn are all exempt from tax. Therefore, PPF is not only safe but can help you save taxes at the same time. The current interest rate is fixed at 7.8% compounded annually. You can invest up to Rs. 1.5 lakh every year under PPF.
4. National Savings Certificate (NSC)
NSC is a bond issued by the government for five to 10 years. It provides fixed returns. The interest earned is compounded and reinvested every year. You receive the final amount at the time of maturity. It also serves as a tax-saving instrument as investments up to Rs. 1.5 lakh is exempt under Section 80C of the Income Tax Act. Only residents of India are eligible to invest in NSC.
5. Atal Pension Yojana (APY)
This is a social security scheme for workers in the unorganized sector. An Indian citizen with a valid bank account and in the age group of 18 to 40 years can apply for APY. You can enroll for APY with your bank or post office. However, the only condition is that the contribution must be made until the age of 60.
6. Pradhan Mantri Jan Dhan Yojana (PMJDY)
PMJDY was launched with an aim to uplift the impoverished of the country. This scheme aims to provide people with bank accounts, insurance covers, credit, and pension. It also offers basic banking services like savings and deposit account, insurance and so on.
7. Sukanya Samriddhi Yojana (SSY)
This is a scheme to secure your daughter’s future. You can open this account at a post-office or a bank before your daughter’s 10th birthday. You can start by investing Rs 1,000. A maximum of Rs.1.5 lakh investment is allowed. The account remains operational until your daughter’s marriage or before she turns 21. The interest rate is fixed every quarter.
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