1. National Pension Scheme (NPS)
NPS is a voluntary retirement savings scheme that offers market-linked returns. NPS is open to all Indian citizens, including those in the unorganized sector. At retirement, investors can withdraw a part of the corpus and use the rest to get a monthly pension. It offers tax benefits under Sections 80C and 80CCD(1B).
The scheme is simple, voluntary, portable, and flexible. It allows you to plan for a financially secure retirement with systematic savings in a planned way. Currently, NPS is offering 9 per cent annualised return.
2. Public Provident Fund (PPF)
PPF is a government-backed long-term savings scheme that is currently offering an interest rate of 7.1 per cent. It provides tax-free returns under Section 80C and has a 15-year lock-in period. It is appropriate for self-employed and salaried people who want to accumulate savings for retirement.
You can invest in a PPF account for a minimum of 15 years and avail any number of 5-year extensions eventually to avail tax benefits of up to Rs 1.5 lakh a financial year under Section 80C of the Income Tax Act and earn a tax-free amount on maturity.
3. Sukanya Samriddhi Yojana (SSY)
The Sukanya Samriddhi Yojana (SSY) is a government-backed savings plan in India designed to secure a girl child’s future. Parents or guardians can open a savings account in the girl’s name, saving for her education and marriage expenses. With attractive interest rates and tax benefits, it’s a popular choice for parents investing in their daughter’s future.
The account can be opened by the natural or legal guardian of a girl child until she attains the age of 10. Currently, the Sukanya Samriddhi Yojana offers an interest rate of 8.2 per cent.
4. Senior Citizen Savings Scheme (SCSS)
The Senior Citizen Savings Scheme (SCSS) is a government-backed plan in India that helps retired individuals earn a regular income. It offers good interest rates and tax benefits, making it a popular choice for senior citizens to secure their financial future. It is offering an interest rate of 8.2 per cent.
Individuals aged 60 years or above, retired personnel from defense services (50 years and above), and those who have retired under Superannuation, VRS, or Special VRS (55 years and above) are eligible to open an SCSS account.
5. Post Office Monthly Income Scheme (POMIS)
Post Office Monthly Income Scheme, amongst others such as Post Office Savings Account, Post Office Recurring Deposit, Post Office Time Deposit, is one of the highest-earning schemes with an interest rate of 7.4 per cent.
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