People often get confused when it comes to investing right. Investment is much needed when it comes to secure our future financially. There are a lot more investment options available these days and it is our responsibility to chose the correct and secured one. Investment helps to build wealth in the long run and secure our future financial during the recession or any other financial crisis. Most people suffer due to improper financial planning therefore, take some time to understand the right investment opportunity available, its pros and cons and most importantly its security.

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Investment opportunities related to stock market investment or mutual funds tend to give more return but we cannot avoid the fact that it is always linked to share market and so as the risk. There is no guarantee on the return. I advise you to go ahead with stock market or mutual fund investment if you understand the basics of it and ready to take the risk. But, if you want to play safe with your money and don't want to take any risk then you might find this article interesting.

When we look for a safe investment, then a fixed deposit scheme by various banks directly comes to our mind. We trust these fixed deposit schemes because the return from these schemes are guaranteed and reliable. But this is also true that interest in such fixed deposits is very less as compared to other investment options. But, there are some fixed deposits schemes provided by the Indian Government which offers attractive returns with added benefits. The Indian government offers these benefits through the Post Office Saving Schemes.

Following is the current FD interest rate provided by the Indian banks.

Currently following Post Office Saving Schemes are available:

1. Post Office Savings Account - 4% per anum 
2. National Savings Recurring Deposit Account - 7.3% per anum
3. National Savings Time Deposit Account - 7% per anum and varies with the number of years investment
4. National Savings Monthly Income Account - 7.3% per anum
5. Senior Citizens Savings Scheme Account - 8.7% per anum
6. Public Provident Fund Account - 8% per anum
7. National Savings Certificates (VIII Issue) Account - 8% per anum
8. Kisan Vikas Patra Account - 7.7% per anum
9. Sukanya Samriddhi Account - 8.5% per anum

For more, you can visit Post Office Saving Schemes

I will not talk about "Senior Citizens Savings Scheme Account" and "Kisan Vikas Patra Account" in this article or I may write a separate article for this. In this article, I will focus on other top 3 saving schemes which guarantee the best return when it comes to fixed deposits.

1. Public Provident Fund Account
2. National Savings Certificates (VIII Issue)?Account
3. Sukanya Samriddhi Account

1. Public Provident Fund Account

When it comes to long term safe investment with a guaranteed return, then it's hard to beat the Public Provident Fund Account scheme. One can opt for it with any reputed Indian Bank but it is also available with India Post Office Saving Scheme. From 01.01.2019, interest rates are 8 % per annum (compounded yearly).

Minimum INR. 500/- Maximum INR. 1,50,000/- in a financial year. Deposits can be made in lump-sum or in 12 installments.

Apart from the lucrative return, it also offers many other benefits including Tax Rebate as mentioned below:

• An individual can open an account with INR 100/- but has to deposit a minimum of INR 500/- in a financial year and maximum INR 1,50,000/-
• Joint account cannot be opened.
• The account can be opened by cash / Cheque and In case of Cheque, the date of realization of Cheque in Govt. account shall be the date of opening of the account.
• Nomination facility is available at the time of opening and also after opening of the account. The account can be transferred from one post office to another.
• The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
• Maturity period is 15 years but the same can be extended within one year of maturity for a further 5 years and so on.
• Maturity value can be retained without extension and without further deposits also.
• Premature closure is not allowed before 15 years.
• Deposits qualify for deduction from income under Sec. 80C of IT Act.
• Interest is completely tax-free.
• Withdrawal is permissible every year from 7th financial year from the year of opening account.
• Loan facility available from the 3rd financial year.

Your 2,000,000 will become 4,942,290 (tax-free) in 20 years if you invest 100000 every year in this plan.

2. National Savings Certificates (VIII Issue) Account

If you don't want to restricted to INR. 1,50,000/- in a financial year investment, then the National Savings Certificates (VIII Issue)?An account is a good option for you. Under this scheme 5 Years, National Savings Certificate (VIII Issue) get issued at the fixed rate (8% per anum as per the year 2019 rate). From 01.01 .2019, interest rates are 8 % compounded annually but payable at maturity. Minimum of Rs. 100/- and in multiples of Rs. 100/- No Maximum Limit.

Following are the benefits (including Tax Rebate) and features of National Savings Certificates (VIII Issue) Account:

• A single holder type certificate can be purchased by, an adult for himself or on behalf of a minor or by a minor.
• Deposits qualify for tax rebate under Sec. 80C of IT Act.
• The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.

*In case of NSC VIII, transfer of certificates from one person to another can be done only once from date of issue to the date of maturity.

*At the time of transfer of Certificates from one person to another, old certificates will not be discharged. Name of the old holder shall be rounded and name of the new holder shall be written on the old certificate and on the purchase application(in case of non-CBS Post offices) under dated signatures of the authorized Postmaster along with his designation stamp and date stamp of Post office.

Your 2,000,000 will become 2,938,656 in 5 years under this saving scheme.

3. Sukanya Samriddhi Account

This scheme is initiated by the Indian government for your daughters. If you want to safeguard your daughter's futures i.e. for her marriage or future studies then this is the best investment option for you. The interest rate under this scheme is 8.5% Per Annum(with effect from 01-0 1-2019 ), calculated on a yearly basis, Yearly compounded.

Minimum INR. 1000/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiples of INR 100/- Deposits can be made in lump-sum No limit on the number of deposits either in a month or in a Financial year

Other benefits (including Tax Rebate) of this scheme are the following:

• A legal Guardian/Natural Guardian can open an account in the name of Girl Child.
• A guardian can open only one account in the name of one girl child and a maximum of two accounts in the name of two different Girl children.
• The account can be opened up to the age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open account up to1.12.2015.
• If minimum Rs 1000/- is not deposited in a financial year, the account will become discontinued and can be revived with a penalty of Rs 50/- per year with the minimum amount required for deposit for that year.
• Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.
• The account can be closed after the completion of 21 years.
• Normal Premature closure will be allowed after completion of 18 years /provided that girl is married.

If you start investing INR. 50,000/- per year from your daughter's 1st birthday, you will have INR. 2,880,055/- when she is 21 years old. Enough for her marriage or further studies.

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I would suggest using the following app to calculate the return and compare before investing. This app is totally free and very lightweight. You can download free at play store Finance Calculator - Financial Planning Assistant




I hope you found this article interesting. Do share with your friends and family and let me know what you feel about these investment/saving schemes in the comment section.