INSUBCONTINENT EXCLUSIVE:
Small saving schemes provide investors with safe options to park moneyInvestors can breathe a sigh of relief as the government made no
changes to the interest rates of small-saving schemes such as Public Provident Fund (PPF) or National Savings Certificate (NSC), in the
second quarter of the financial year
On June 30, 2021, the finance minister announced through a circular that small saving schemes would earn the same interest rates as they did
during the quarter ending June.This will benefit small investors by providing them with better rates than other avenues of fixed incomes
such as bank fixed deposits
Small saving schemes are avenues of investment that provide investors with safe options to park their money as well as offer attractive
returns.Small saving schemes are a safe and disciplined way to park money
Here are 5 of the most popular small saving schemes:1) Public Provident FundThis scheme is the most popular investment option
The benefit of this investment option is that all interest earned from investing in this scheme is exempt from tax
The period of this scheme is 15 years and can be opened at a post office or the bank.2) Post-Office Saving SchemeThere are various
investment options that are offered under this scheme
It is very popular as the rate of risk is minimal and favourable returns are guaranteed
These options are also attractive as the documentation required to open these small saving accounts are minimal and the process is quick.3)
Senior Citizens Saving SchemeAimed to help citizens who are 60 years and above, this scheme requires a minimum deposit of Rs
The duration of this investment scheme is 5 years.4) Employees Provident Fund (EPF) This investment scheme aims at helping employees save
funds for their retirement
Organisations with more than 20 employees must mandatorily contribute to EPF.5) National Savings Certificate (NSC)It's another popular
This scheme is backed directly by the Government of India, and it guarantees tax benefits and favourable returns
The duration of the scheme is 5 years and can be opened at a post office.With the interest rates remaining the same for small saving
schemes, it comes as a major benefit to debt investors as they can continue fetching favourable returns at minimal investments in the
July-September quarter as well.
