5 Best Government Schemes To Invest In India: Money Matters

Looking to invest wisely in India? Or curious about the best government schemes that offer both security and returns? India's diverse range of investment options includes several government-backed schemes tailored to different financial goals and risks. Whether you're looking for stable returns or tax benefits, here are some of the best government schemes to consider:

5 Best Government Schemes To Invest In India

1. Public Provident Fund (PPF)

PPF remains one of the most popular investment options due to its safety, attractive interest rates, and tax benefits. It offers compounded tax-free interest and has a long-term tenure of 15 years, extendable in blocks of 5 years. Contributions to PPF are eligible for tax deductions under Section 80C of the Income Tax Act, making it a preferred choice for long-term savings, as per ClearTax.

2. National Pension System (NPS)

NPS is a retirement-focused investment scheme that allows subscribers to build a retirement corpus. According to the National Pension System Trust website, it states that “The Pension Fund Regulatory and Development Authority (PFRDA) regulates and administers NPS under the PFRDA Act, 2013. NPS is a market-linked defined contribution scheme that helps you save for your retirement. It is one of the most efficient ways of boosting your retirement income and saving tax.” NPS also provides additional tax benefits up to ₹1.5 lakh under Section 80C and an exclusive deduction of ₹50,000 under Section 80CCD(1B).

3. Sukanya Samriddhi Yojana (SSY)

SSY is targeted towards parents of girl children to create a savings fund for their education and marriage expenses. “Account can be opened in the name of a girl child till she attains the age of 10 years. Only one account can be opened in the name of a girl child. Minimum deposit ₹ 250/- Maximum deposit ₹ 1.5 Lakh in a financial year,” as per National Savings Institute. The account matures after 21 years from the date of opening or upon the marriage of the girl child after she turns 18.

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4. Atal Pension Yojana (APY)

APY aims to provide a pension to workers in the unorganised sector. As per the Atal Pension Yojana official website, “Atal Pension Yojana (APY), a pension scheme for citizens of India is focused on the unorganised sector workers. Under the APY, a guaranteed minimum pension of Rs. 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers. Any Citizen of India can join the APY scheme.” APY contributions qualify for tax benefits under Section 80CCD.

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5. Government Savings Bonds

Government Savings Bonds are low-risk investment options issued by the Reserve Bank of India (RBI). Savings Bonds remain an easy way to save and earn money over time. “These bonds have a sovereign guarantee. This means the Government is obligated to return the amount you invested on maturity. This makes the 7.75% Government of India Savings Bond a very safe investment option,” as per HDFC Bank

Note: You are advised to seek professional advice from financial advisors before making any investment decisions who specialise in financial investments and can provide valuable insights and guidance.

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