In recent times, many investors are seeking alternatives to fixed deposits (FDs) that can offer better returns while still ensuring a degree of safety. Several government schemes have emerged as viable options that not only promise attractive interest rates but also provide regular payouts. Here, we will explore three such government schemes that can yield better returns than traditional FDs, along with the advantages they offer.
One of the most popular schemes is the Public Provident Fund (PPF). This long-term investment option is backed by the government and offers a fixed interest rate that is typically higher than that of FDs. The PPF has a maturity period of 15 years, but investors can take loans against their balance or make partial withdrawals after a certain period. The interest is compounded annually, and the government reviews the interest rates periodically, ensuring that they remain competitive.
Another noteworthy scheme is the National Savings Certificate (NSC). This investment option has a fixed tenure of five years and is particularly appealing for those looking to save for specific goals. The NSC provides a guaranteed return, and the interest earned is compounded annually, making it an excellent choice for long-term investors. Additionally, the interest from NSC is exempt from tax, which enhances its attractiveness as a savings tool.
Lastly, the Senior Citizens Savings Scheme (SCSS) is designed specifically for senior citizens, offering them a safe investment avenue with higher interest rates than traditional FDs. The SCSS has a tenure of five years, and interest is paid quarterly, providing a steady income stream for retirees. With the government backing, investors can feel secure knowing that their funds are safe, while also enjoying higher returns compared to conventional banking options. These government schemes not only provide better returns but also cater to the specific needs of different groups of investors, making them a worthy consideration for anyone looking to enhance their investment portfolio.
