- 01 Public Provident Fund (PPF)
✦ Government-backed: Secure investment plan with a stable interest rate of 7.1% per annum (for Q4 of FY 2024-25).
✦ Tax benefits: Contributions are tax-deductible under Section 80C of the Income Tax Act. The interest earned and the maturity proceeds are also tax-free in PPF account.
✦ Partial withdrawals: Allows partial withdrawals from the 6th year onwards.
✦ Long-term growth: Ideal for those seeking stable, long-term growth.
- 02 Fixed Deposits
✦ Safe investment: Considered a secure option.
✦ Current interest rates: Range from 3% to 9% per annum.
✦ Interest rate decline: Rates have decreased compared to previous years.
You can use an FD calculator to calculate returns on your investments.
- 03 Voluntary Provident Fund (VPF)
✦ Government-backed: Offers a secure investment with interest rates set by the government.
✦ Extension of EPF: VPF is an extension of your Employee Provident Fund (EPF), allowing employees to contribute more than the mandatory 12% of their basic salary.
✦ Higher Contribution: Employees can contribute up to 100% of their basic salary plus dearness allowance to the VPF.
✦ Tax benefits: Contributions are eligible for tax deductions under Section 80C of the Income Tax Act. The interest earned and the maturity amount are also tax-exempt, subject to certain conditions.
✦ Interest Rate Alignment: The interest rate offered on VPF is the same as that of EPF.
✦ Ease of Investment: Contributions are made through salary deductions, making it a convenient way to save.
- 04 Recurring Deposits (RD)
✦ Monthly Savings Discipline: RD encourages consistent savings through fixed monthly deposits over a chosen tenure.
✦ Fixed Returns: Offers assured interest rates that remain the same throughout the tenure, ideal for conservative investors.
✦ Flexible Tenures: Investors can choose tenures ranging from 6 months to 10 years, depending on their goals.
✦ No Market Risk: The investment is not market-linked, providing guaranteed returns irrespective of market conditions.
✦ Premature Withdrawal: Withdrawals before maturity are possible with a penalty, offering moderate liquidity.
- 05 Capital Guarantee Plans
✦ Guaranteed return: 100% of your invested capital is returned at maturity.
✦ Potential growth: 10-year returns can range from 12-18% per year.
✦ Risk-free: Your initial investment remains secure regardless of market fluctuations.
- 06 Annuity Plans
✦ Guaranteed Income: Offers fixed payouts for life or a defined period after investing a lump sum.
✦ Retirement Focused: Designed to provide financial stability during retirement years.
✦ Types of Annuity: Includes immediate, deferred, life, and joint life annuity options.
✦ No Market Risk: Returns are not market-linked, ensuring predictability.
✦ Taxation: Annuity income is taxable as per applicable slab rates.
- 07 Guaranteed Savings Plan
✦ Dual benefits: Guaranteed returns and life insurance coverage.
✦ Higher returns: Offers higher interest rates compared to Fixed Deposits.
✦ Tax advantages: Tax benefits on both premiums and returns.
✦ Flexibility: Provides loan options and life cover.
- 08 Sukanya Samriddhi Yojana (SSY)
✦ Government-backed: Designed for the financial security of girl children.
✦ High interest rate: Offers an attractive interest rate of 8.2% per annum (for Q4 FY 2024-25).
✦ Triple tax benefits: Tax-free principal, interest, and maturity amounts.
✦ Lock-in period: Designed for specific goals (education, marriage).
- 09 Senior Citizen Savings Scheme (SCSS)
✦ High interest rate: Offers a competitive interest rate of 8.2% per annum.
✦ Ease of access: Easily open an account at designated banks or post offices.
✦ Regular income: Provides quarterly interest payouts.
✦ Tax benefits: Tax-deductible contributions under Section 80C.
- 10 National Pension Scheme (NPS)
✦ Retirement savings: Government-sponsored scheme for post-retirement financial security.
✦ Variable interest rates: Interest rates range from 9% to 12% per annum.
✦ Diversified investments: Offers investments in equity, corporate bonds, and government securities.
✦ Tax benefits: Tax deduction of up to 10% of your salary on your own contributions, subject to a maximum of Rs. 1.5 lakh under Section 80CCD(1). You can claim a tax deduction of up to Rs. 50,000 under Section 80CCD(1B), over and above the Rs. 1.5 lakh limit.
✦ Annuity requirement: 40% of the corpus must be used to purchase an annuity.
- 11 Post Office Monthly Income Scheme (POMIS)
✦ Regular income: Provides monthly income to investors.
✦ Interest rate: Offers an interest rate of 7.4% compounded monthly.
✦ Maturity period: Has a maturity period of five years.
✦ Investment limits: Maximum investment limits vary for individual and joint accounts.
✦ Low risk tolerance: Investors with this risk profile prefer investments that offer stable, predictable returns and avoid the ups and downs of market volatility.
- 12 National Savings Certificate (NSC)
✦ Fixed-income investment: Government-issued certificate with a fixed interest rate.
✦ Interest rate: Offers an interest rate of 7.7% compounded annually.
✦ Tax benefits: Interest earned is tax-deductible under Section 80C.
✦ Low risk: Ideal for risk-averse individuals.
- 13 Gold
✦ Value appreciation: Has shown significant value growth in recent years.
✦ Diverse forms: Available in physical, ETF, and digital forms.
✦ Historical returns: Offers an average annual return of 10% since 1971.
✦ Inflation hedge: Serves as a reliable hedge against inflation.
✦ Cultural and economic relevance: Continues to be a popular investment choice.
- 14 Real Estate
✦ Traditional investment: A popular choice among Indian investors.
✦ Potential returns: May offer good returns but can be volatile.
✦ Alternatives: Other options like ULIPs, stocks, and mutual funds may offer better returns.
- 15 RBI Taxable Bonds
✦ Fixed-income investment: Issued by the Reserve Bank of India.
✦ Guaranteed principal: Offers a guaranteed return on the principal amount.
✦ Regular interest payments: Provides regular interest income.
✦ Higher interest rate: Currently offers a higher interest rate compared to FDs.
✦ Diversification: This can help diversify your investment portfolio.
- 16 Kisan Vikas Patra (KVP)
✦ Government-backed: A secure savings scheme offered by India Post, ensuring the safety of your investment.
✦ Doubling Time: The investment doubles after a specific period, which is determined by the prevailing interest rate. For example, as of current information, the KVP doubles in 115 months.
✦ Accessibility: Available at all post offices across India.
✦ Minimum Investment: A minimum investment of ₹1,000 is required, and investments can be made in multiples thereof.
✦ Liquidity: KVP certificates can be encashed after a lock-in period of 2 years and 6 months.
✦ Transferable: KVP certificates can be transferred from one person to another.
✦ Long-term growth: Ideal for those seeking stable, long-term growth.
- 17 Sovereign Gold Bonds (SGBs)
✦ Government-Backed Security: Issued by RBI, these are safe, reliable alternatives to physical gold.
✦ Interest Income: Investors earn a fixed 2.5% interest per annum over and above gold price appreciation.
✦ No Storage Hassles: Being digital or paper-based, SGBs eliminate the need for physical storage.
✦ Tax Advantage: No capital gains tax on redemption after maturity (if held till 8 years).
✦ Tradable on Exchanges: SGBs can be traded in secondary markets after the initial lock-in.
- 18 Floating Rate Savings Bonds
✦ Variable Interest: Interest rate resets every 6 months, aligning with market changes.
✦ Government Backed: Issued by RBI, offering high security and credibility.
✦ Fixed Tenure: Comes with a 7-year lock-in, suitable for long-term investors.
✦ No Premature Exit: Premature withdrawal is allowed only for specific senior citizens under certain conditions.
✦ Non-Tradable: Bonds are not traded on secondary markets, ensuring stable returns.
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