As the nature of the Indian economy evolves, the expenditure and saving patterns of its citizens are also witnessing a significant change. People are now looking for investment options that can guarantee good returns and are risk-free, given the volatility of the market. There are several post office schemes that offer interest rates of over 7 per cent, with the government guaranteeing complete security of the funds.
Kisan Vikas Patra (KVP)
It is one of the most sought-after post-office schemes that can potentially double your money in approximately 115 months (9 years and 7 months). Currently, the KVP offers 7.5 per cent annual compound interest.
For instance, if someone invests a total of Rs 10,000, the maturity amount almost swells to Rs 20,000. One notable feature of this scheme is that it comes with a full government guarantee, so there is no risk factor involved.
Sukanya Samriddhi Yojana (SSY)
It is one of the well-known schemes, featuring both security and certainty of profits. The scheme caters to daughters, offering an annual interest rate of 8.2 per cent, which is one of the highest interest rates available in the market.
Under this scheme, an account can be opened in the daughter's name, and deposits can be made for 15 years. The entire account remains active for 21 years. What stands out regarding this scheme is that the deposit, interest, and maturity proceeds are all tax-free. This scheme serves as an ideal investment for funding needs such as a daughter's education and marriage.
National Savings Certificate (NSC)
This scheme has earned its name for being perfect for those who seek to make a safe investment with a fixed return. Currently, investments made under NSC offer a compound interest rate of 7.7 per cent per annum. The interest increases annually.
For example, if someone makes an investment of Rs 10,000, the amount will become approximately Rs 14,490 in 5 years. This entire amount is secure, as the scheme is managed by the Central Government. It also provides tax benefits of up to Rs 1.5 lakh under Section 80C.
