Sukanya Samriddhi Yojana (SSY) is a government-backed scheme under the initiative of Beti Bachao Beti Padhao.
There are a few government schemes that offer a high-interest rate which remains the same throughout the tenure.
The majority of people choose fixed deposit investment in the country because of its high-interest rate. But did you know that there are a few savings schemes offered by the government with interest higher than what you get on fixed deposits along with other facilities?
Within the last year, the country has witnessed a rapid rise in the interest rates of the private and government banks on many saving schemes including fixed deposits. Hence, customers invested in fixed deposits. But a few government schemes offer higher interest than your bank’s fixed deposit. What makes this beneficial is, after a one-time investment, the interest rate remains the same throughout the period. This scheme has been launched to provide financial security to senior citizens.
Kisan Vikas Patra (KVP) is a flexible investment product backed by the government that is available as certificates. It is a fixed-rate small savings scheme of the Indian Post Office with a defined time frame (115 months in the present issue) after which your investment will double. KVP certificates are currently available for purchase through a few public sector banks as well as India Post Offices. Currently, it has an interest rate of 7.5 per cent.
Another small savings scheme of the Indian Post Office is the National Savings Certificate. With a 5 year tenure, its interest rate has increased from 7 to 7.7 per cent. For any investment made between April 1 and June 30, 2023, the rate will be locked for the next 5 years.
Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme that is designed for a bright future for a girl child under the Beti Bachao Beti Padhao initiative. Its rate too increased, from 7.60 per cent to 8 per cent. It also has tax benefits under 80c.
And finally the popular Public Provident Fund (PPF) also offers a high-interest rate of 7.1 per cent and is compounded annually. The scheme is backed by the Government of India and is considered to offer a risk-free return.
The current PPF interest rate is 7.1% and is compounded annually. PPF is backed by the Government of India and it offers a guaranteed risk-free return. Due to its EEE status, the amount invested, interest earned and the maturity amount received are all tax-free. It has a minimum tenure of 15 years and the minimum amount is 500 while the maximum is Rs 1.5 lakh per annum.
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