Let us tell you about such government schemes in which you can start with an investment of only 100 to 500 rupees.
Best Government Savings Schemes: In the era of the coronavirus pandemic (COVID-19 Pandemic), the person understands the importance of every savings. Especially investors who are able to save up to 10 thousand in a month. The most important thing for them is to invest money in a place where guaranteed returns will be given in a given time and maximum returns will be made in the least amount of money. Let us tell you about such government schemes in which you can start with an investment of only 100 to 500 rupees.
Post Office Recurring Deposit (RD)
The Post Office Recurring Deposit (RD) is one such scheme, which promotes small savings. By the way, its maturity is 5 years, but you can extend it even further for 5-5 years by applying. A minimum of 100 rupees has to be deposited in the post office RD every month. The deposit should be in multiple of Rs. There is no maximum investment limit. Currently, 5.8 percent interest is being received on the post office RD. Compounding of interest is done on a quarterly basis.
- Post office RD has the facility of both single account and joint account. A joint account can have a maximum of 3 adults.
- Names of children above 10 years of age can also be opened by the account guardian under his supervision.
- RD’s maturity is 5 years, but by applying before maturity, you can extend it for the next 5-5 years.
- You can deposit at least 100 rupees per month in RD account and the maximum amount in multiples of 10.
- After 3 years from the date of opening the account, the facility of pre-mature closure will be available.
- Interest rates change on a quarterly basis.
- The account can be transferred from one post office to another.
- The penalty has to be paid for not depositing on time. It will be 1 rupee for every 100 rupees.
- There is also a facility to take a loan up to 50 percent of the deposit after one year. Which can be repaid outright with interest.
- There is also a facility to submit online through IPPB saving account.
Post Office Savings Account
A savings account is opened in the post office for 500 rupees. Only one savings account can be opened in a post office. Currently, the annual interest rate on the Post Office Savings Account is 4 percent. It can be opened in single or joint, in the name of a minor child over 10 years of age, for the mentally weak person.
Like banks, a minimum monthly balance is to be maintained in the post office savings account. The minimum balance for account is fixed at Rs 500. Maintenance fees of Rs 100 will be deducted from the account for not maintaining the minimum balance. If the balance in the account is suspended after deducting the fees, it will automatically close.
Check / ATM facility on post office savings account, nomination facility, facility to transfer an account from one post office to another, intra operable net banking / mobile banking facility, online fund transfer facility between post office savings accounts is available. To keep the account active, it is necessary to deposit or withdraw at least once within 3 financial years.
Post Office Public Provident Fund (PPF)
Post office PPF account can be started from minimum 500 rupees. The current annual interest rate on the account is 7.1 percent. It is necessary to deposit minimum 500 rupees and maximum 1.5 lakh rupees in an account in a financial year. If the minimum annual amount is not deposited in the account, then the account becomes inactive and then activates again only after filling the previous balance, a charge of Rs 50 and an install. Also, if you want to take advantage of the entire interest of the month, then deposit it in PPF by the 5th of every month. Nomination facility at Post Office PPF, facility to open another PPF account in the name of Minor is available.
The post office PPF has a maturity period of 15 years and cannot be closed earlier. However, in select cases, it can be closed if required after completion of 5 years. These matters are as follows-
- Account holder, his spouse or dependent children with a fatal illness.
- PPF account holder or dependent children for higher education.
- On account abroad of the account holder.
Investment in post office PPF, interest on it and the amount received on maturity, all three are exempt from tax under the Income Tax Act. Post office PPF account can be extended in block of 5 years after completion of maturity period. For this, application has to be given within one year from the maturity date. On account extension, it can be continued with or without new deposit. Interest will continue to accrue on the existing balance.
After the completion of one year of the post office PPF account and before the completion of 5 years, it can be taken a loan. Apart from this, it can also be withdrawn after the completion of 5 years of the account. Online deposit facility through Intra operable net banking / mobile banking at Post Office PPF, online deposit facility available from India Post Payments Bank Savings Account.
Sukanya Samridhi Yojana (SSY)
SSY account can start from a minimum of Rs 250. In this, a minimum deposit of Rs 250 and maximum of Rs 1.5 lakh has been fixed in a financial year. Under this scheme, accounts can be opened for securing your child’s future. In SSY, parents can open an account in the name of a girl up to the age of 10 years. Only one account will be opened in the name of a girl child. Talking about the interest rate, at present, the Sukanya Samriddhi Yojana account is getting 7.6 percent interest annually. One can invest in Sukanya Samriddhi Scheme for a maximum period of 15 years.
Sukanya Samriddhi account can be closed only after the girl is 21 years old. However, normal premature closure is allowed when the child is 18 years old and gets married. After the age of 18, the child can do partial cash withdrawal from SSY account. Withdrawal limit is up to 50% of the balance in the account at the end of the last financial year, tax deduction up to Rs 1.5 lakh can be claimed under section 80C on the amount deposited in SSY. Apart from this, the interest on the deposit and the money received on completion of the maturity period is also tax free. In this way SSY is a tax saving scheme of ‘EEE’ category.