Retail investors are usually in the lookout for investing options that are safe and secure. One such safe and secure option is ‘small savings scheme’ which are government-run investment schemes and provide safe investing options to retail investors. These schemes offer guaranteed returns at regular intervals compounded monthly, quarterly or annually as the case may be.
These instruments cater to conservative investors and offer guaranteed but low returns and range between 6-8 percent.
Post Office Savings Account: It can be opened by making a minimum deposit of ₹500 while minimum withdrawal amount is ₹50. There is no limit of maximum deposit. The interest rate offered is 4 percent per annum on individual/ joint accounts and is compounded annually.
Post Office Time Deposit Account: These accounts can be opened by depositing a minimum of ₹1,000 and in multiple of ₹100. There is no maximum limit.
Senior Citizen Savings Scheme: One can open this account by depositing ₹1,000 while the maximum limit is ₹30 lakh. The rate of interest offered is 8.2 percent.
Monthly Income Scheme Account: One can open a MIS account by depositing a minimum of ₹1,000 while the maximum investment that can be made is ₹9 lakh in single account and ₹15 lakh in joint account. The rate of interest offered is 7.4 percent payable monthly.
National Savings Certificate: One can open an account by investing a minimum of ₹1,000 while there is no maximum limit. The rate of interest is 7.7 percent compounded annually but payable at maturity.
PPF: One can invest a minimum of ₹500 while maximum is ₹1.5 lakh in a financial year. The rate of interest is 7.1 percent per annum compounded yearly.
Kisan Vikas Patra: One can invest a minimum of ₹1,000 and in multiples of
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