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Check out THESE 5 govt schemes with better interest rates than bank FDs – India TV

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Investment schemes: Many people in the country opt for fixed deposit investments due to their high interest rates. However, it’s worth noting that the government offers several savings schemes with interest rates higher than those of fixed deposits, along with additional benefits. These schemes typically offer higher returns compared to fixed deposits (FDs) from most banks. Being government-backed, they carry very low risk. The government sets interest rates for small savings schemes every three months. Let’s explore five such small savings schemes where you can potentially earn higher returns than bank FDs.

Five govt schemes with better interest rates 

  1. Senior Citizen Savings Scheme (SCSS): Individuals aged 60 and above can invest in this scheme, which currently offers an annual interest rate of 8.2 per cent. Investments in this scheme must be made in lump sums, in multiples of Rs 1,000, with a maximum investment limit of Rs 30 lakh. Additionally, investments in this scheme qualify for tax exemption under Section 80C of the Income Tax Act. Investors can enjoy the benefit of regular income through this scheme.
  2. Kisan Vikas Patra: This is a savings certificate issued by the Government of India. The scheme offers a fixed rate of interest and guaranteed returns. There is no tax deduction benefit available. Currently, Kisan Vikas Patra offers a compound interest rate of 7.5 per cent per annum. In this scheme, the invested amount doubles in 115 months, which is equivalent to 9 years and 7 months. There is no maximum limit on the amount that can be invested.
  3. Post Office Monthly Income Scheme (MIS): This scheme offers investors the benefit of receiving a stable income. The minimum investment amount is Rs 1,500, while the maximum is Rs 9 lakh for individual accounts and Rs 15 lakh for joint accounts. The interest earned is subject to taxation, and the scheme does not provide tax exemption benefits under Section 80C. Currently, the scheme offers an annual interest rate of 7.4 per cent, with interest paid monthly.
  4. National Savings Certificates: This is a guaranteed investment and savings plan that offers an annual compound interest rate of 7.7 per cent, which is paid upon maturity. The minimum investment amount is Rs 1,000, with no maximum limit. Additionally, you can open any number of accounts under this scheme. Investments in this plan are eligible for tax exemption benefits.
  5. Mahila Samman Savings Certificate: This scheme has been initiated by the Government of India to encourage a culture of savings among Indian women. It offers an annual interest rate of 7.5 per cent, compounded quarterly. However, there is no tax benefit associated with this scheme. The interest income is taxable and tax is deducted according to the investor’s income tax slab.

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