If you put in a little money every month and you put in ₹3,00,000, you will get ₹11,00,000. Isn’t it? If you have a large amount, if you put this in, you will get ₹3000, ₹4000 every month for your living expenses alone. You will get double the money you put in, because this is the compound interest method.
Similarly, you do not need to pay tax on the money you put in and the interest you get. I am going to tell you four schemes that are suitable for short term, long term, for everyone from children to elders in our house, for those who are near our house, and for those who are near the post office. Get to know them and invest. Let’s go to the video.
First Scheme: National Savings Certificate (NSC)
The first scheme is the National Savings Certificate. In this, you can deposit as many lakhs as you want starting from ₹1000. You can open as many accounts as you want. If you have a certain amount, I will not touch it for five years. If I do not need this money for five years, then I can take it and put it in this scheme. We will get 7.7% interest in this scheme.
Now you have ₹100,000. Let’s say you take it and put it in this NSC scheme, you will get ₹7,700 interest per year. Then, what happens next year, you will get 7.7% interest on ₹1,07,700. If you calculate this for five years, you will have ₹1,44,904 in your account. In this scheme, you pay only ₹1,00,000. But, you get half of this, half of the amount you invest as interest.
- If you want to invest in this scheme, then what is the eligibility?
- You must be an Indian citizen.
- You can open this even if you are a minor, but you can open it only with the support of your parents and guardian.
- You can open a joint account with up to three people.
Tax benefits:
- If you are a taxpayer, you will get a tax exemption up to ₹1,50,000 that you invest in this scheme.
- Similarly, our taxes will also come and pay the interest earned through this scheme.
- If you are investing for the short term, and you will not take those five years, then NSC will be the best scheme.
“Parents planning for their daughter’s future can explore child education savings plans.”
Second Scheme: Sukanya Samriddhi Yojana (SSY)
The second scheme is Sukanya Samriddhi Yojana. Many people must have heard this name. Many people must have applied for it. Some people must have missed it. So, if you have a girl child under the age of 10 in your house, then definitely apply for this scheme. It will be very useful.
For this scheme, if you work hard and save ₹2000 every month, it is enough. They give 8.2% interest on this. So, if we look at it per year, if we save ₹2000, ₹2000, we will get ₹24,000. So, if the interest rate is 8.2%, it will be ₹1968. So, what happens next year? This ₹24,000 and ₹1968 will add up to ₹25,968. This will earn 8.2% interest.
If you save this money little by little, after 15 years, it will be ₹3,60,000. The interest on this will be ₹784,239. There is a waiting period of six years. After that, the amount of money you will have in your hand will be approximately ₹11,37,342.
Who is eligible for this scheme?
As I said earlier, all girls under the age of 10 are eligible.
Now your child is one year old, so if you apply for this scheme now, you can put a little money in your hand for 15 years and put it in every month, no matter how much you want. So, if you keep putting it in, you will get a good amount in 15 years.
If you keep that amount as it is, then there will be a waiting period of six years.
Then, when your daughter turns 21, you will get a good amount in your hand.
Investment limits:
- In this scheme, you can put a minimum of ₹250 to a maximum of ₹150,000 per year in the name of your child.
- So, what are you planning when you are putting it in? Plan how much you need after 21 years, and the limit is ₹1,50,000, and put in as much as you can within that.
- It is okay to start with ₹1000 or ₹2000 initially. And increase this amount as you go.
- The interest rate on this will change every quarter.
Methods of withdrawing money in advance:
Can you withdraw the amount only after waiting for 21 years? If so, before that, when your child is in 10th or 12th, or if he needs the amount for higher education, you can get 50% of the amount through this scheme.
Similarly, if after the age of 18 you are unwell, have an emergency, or your child is in critical condition, you can close the account and withdraw the full amount.
Tax benefits:
- The best thing about this scheme is that you don’t have to pay tax on the amount you invest, the interest you earn, or the interest you earn over and above that.
- So, this will be even more beneficial for those who pay taxes.
- Apart from that, it will be very beneficial for everyone, so definitely invest in it.
Third scheme: Public Provident Fund (PPF)
The third scheme is the Public Provident Fund. Just like Selvamagal Savings Scheme for girls, many parents of boys have come and invested in this scheme, as the post office workers told us. So, if you are investing for the long term, then this will be a better scheme.
You can invest from ₹500 to ₹150,000 per year in this scheme. The interest rate is 7.1%. So, if you pay ₹2000 per month, how much will it cost per year? It is ₹24,000. At 7.1%, the interest will be ₹852. So, if we look at it per year, it will be ₹24,852. And then the interest on this will start to continue.
If you put it like this for 15 years, at the end of 15 years, you will have paid ₹360,000. So, how much interest will be earned, you will have got ₹2,90,000. So, how much will be in our hands after 15 years? Then we will get ₹6,50,000.
Highlights:
- In this scheme, we get double the amount we put in.
- Similarly, there are some advantages. If we have paid for three or four years, then if we need any amount, we can also get it as a loan through this scheme.
- Similarly, if after seven years, we have an emergency situation, we can close this scheme.
- And we do not need to pay taxes on the amount we invest and the compound interest we earn.
- So, this will be a good plan for a long-term investment that we can make for 15 years.
Eligibility:
- If we look at the eligibility in this scheme, if you are 18 years old, you can open it.
- And if you are under 18 years of age, you can open it in the name of your parents and guardian.
- One person can open an account.
Fourth Scheme: Senior Citizens’ Savings Scheme (SCSS)
Fourth scheme, Senior Citizens Scheme. If you are above 60 years of age, you are eligible for this scheme. And if you have bought VRS at the age of 55, then you can apply for this scheme within three months of buying VRS. So, the interest rate in this scheme is 8.2%. You can invest from ₹1000 to ₹30,00,000.
If you put ₹200,000 in this scheme, the interest on it is 8.2%. So, ₹4100 will come to your account once every three months. So, if you look at it per year, you will get ₹16,400. So, for five years, you will get ₹82,000 in interest only on the ₹200,000 you invested.
Early withdrawal rules:
- If you withdraw the investment you put in within a year, you will not get any interest.
- And if you withdraw the amount you put in within one to two years, then you will get 1.5% from the amount you invested.
- If you withdraw it within two to five years, then you will get 1% from your investment. So, know this too.
- And the interest you get through this scheme is also tax-paying; if you are a tax-paying person, then you will also pay tax.
General notes on the schemes:
Among the four schemes I mentioned, PPF, Selvamagal Savings Scheme (SSY). According to this scheme, the interest rate keeps changing every quarter. And similarly, in this scheme, if you make a monthly payment, if you have made a payment within the 5th of the month, the interest will be added along with it. So, if you make a payment after the 5th, the interest for that will be added from the next month. So, if you were a monthly payer, paying within the 5th will be even more profitable.
If we take investment, there are many investment plans that can give better interest than the post office. There are many like Chip, Share Market. If we know all this and invest, it will be even better. But if we take the post office, it is right next to our house, we can access it easily, the amount will be safe and secure, and the interest will be decent. So, there are four best schemes in this post office, and that is what I have explained to you. So, I think you know. So, you too should start your savings.