Best Government Investment Schemes In India
Updated On Mar 23, 2022
The investment scheme plans launched by the Indian Government are risk-free, thereby helping to ensure peace of mind. They are available through banks, post offices, and other financial institutions that cater to the requirements of investors. Some of them even provide tax benefits which will help save more money. It is wise for investors to evaluate schemes properly to gain more ideas in advance. Not only that, they even show methods to explore the options available in the markets with ease.
List of Best Government Investment Schemes in India for 2022
Here's a list of the best government schemes in India:
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana, shortly known as SSY, is one of the best investment plans for parents of a girl child in India. Launched in 2015, the scheme aims at uplifting the life of a girl child that will help gain more advantages. The minimum amount to invest for this scheme is Rs. 1000, and the maximum amount is Rs. 1.5 lakhs per annum. It has been active for 21 years, and parents can open an account in a girl’s name until she attains 10 years.
National Pension Scheme (NPS)
A national pension scheme is open to all government employees in India. The scheme is one of the top investment plans available for living independently after retirement. Investors can even allocate the funds in equities and government securities based on their choices. In addition, investments made up to Rs. 50,000 are eligible for tax deductions under the income tax act.
Prime Minister Vaya Vandana Yojana (PMVVY)
Prime minister Vaya Vandana Yojana, shortly known as PMVVY, is a retirement cum pension plan for senior citizens above 60 years. The scheme provides a regular fixed sum with an interest rate of 8% to 8.3% for 10 years. It offers a monthly pension of Rs. 1000 after purchasing a price of Rs. 1.5 lakhs. Furthermore, the plan provides a monthly pension of Rs. 10,000 after buying a maximum price of Rs. 15 lakhs. The scheme offers a loan of up to 75% of the purchase price. Investors can appoint nominees for this scheme within the policy terms when they pass away.
Atal Pension Yojana (APY)
Atal Pension Yojana, shortly known as APY, is a social security scheme offered by the Indian Government for people who work in the unorganized sectors. The plan is the best option for economically weaker sections that give ways to select a pension plan for a better future. It is one of the best investment plans in India for citizens within the age group 18-40. Investors will get a guaranteed pension amount ranging from Rs. 1000 to Rs. 5000 based on the tenure and investment amount.
Pradhan Mantri Jan Dhan Yojana (PMJDY)
Pradhan Mantri Jan Dhan Yojana, shortly known as PMJDY, aims at providing financial services and products for individuals who don’t have a bank account. The minimum age to open an account is 18 years and 10 years for minors. It is a zero balance account that satisfies the requirements of individuals. Additionally, the savings account offers an overdraft facility based on bank transactions and operations.
Sovereign Gold Bonds (SGBs)
A sovereign gold bond, shortly known as SGB, is the best option available for investors when they don’t want to own and save gold. Apart from that, the bond comes in Demat form, and TDS is not applicable. SGB is one of the best government investment schemes available for those who want to ensure transparency. Moreover, it is a safe scheme that will help provide financial stability in life.
National Savings Scheme (NSC)
National Savings Scheme (NSC) is the best savings plan available for individuals to meet essential financial planning needs. The minimum investment is Rs.100, and there is no maximum investment. On the other hand, the Government of India will fix the interest rates based on inflation and other factors. Only Indian residents are eligible to apply for the scheme, and they should check the eligibility before selecting the plan.
Public Provident Fund (PPF)
Public provident fund (PPF) is one of the govt investment schemes in India because it is a risk-free option that gives ways to get high returns. However, the Indian Government will determine the interest rates, and investors should know about them before investing money. It has a tenure of 15 years allowing investors to save taxes. The interest rates may vary every year, and players should know about them in detail.
The Indian Government issues securities such as bonds and treasury bills (T-bills) to investors, and they can select them based on their choices. However, the maturity period may range from 91 days to 40 years, depending on the securities. Government securities are the best government investment schemes with high returns that will help generate high income effectively. Investors can even use them as collateral when they want to borrow funds in the repo market. At the same time, they should know the terms and conditions before investing money. This will help a lot to maintain a better cash flow to overcome financial obstacles.
Short-term or long-term Investment plans allow people to generate high returns that will help improve their financial positions significantly. However, it is wise to choose them carefully to avoid huge losses and other problems. When choosing a scheme, investors should know the risks in detail to maximize the returns.