This article is a continuation of Part 1, where we explored some of the most reliable government-backed investment options in India. Here’s Part 2 with five more valuable schemes.
6. Atal Pension Yojana
Designed especially for the unorganized sector, Atal Pension Yojana is a guaranteed pension scheme regulated by the PFRDA. Every Indian citizen aged between 18 and 40 are eligible for this scheme and get an assured pension after you turn 60. You can open an account either in a nationalized bank or at the post office.
The APY scheme pays out a minimum pension of Rs 1000 per month, which can go up to Rs. 5000 per month depending upon the contribution. While the minimum contribution is Rs 42 per month the maximum can go up to Rs. 1500 a month based on the contributor’s age. You can contribute monthly, quarterly and half-yearly through an auto-debit facility as well.
7. Pradhan Mantri Jan Dhan Yojana
Launched in 2014, the Pradhan Mantri Jan Dhan Yojana scheme aimed at promoting greater financial inclusion within the country. The scheme helps in improving access to financial services such as need-based credit, basic savings account, micro-insurance and remittance facilities to the unorganized sector.
Through this scheme, individuals can open a zero (0) balance account for free and get access to multiple facilities such as debit cards, cheque books and overdrafts. You can open an account at any authorized banks in the country. It can be opened individually or jointly and the minimum age has to be 10.
8. Kisan Vikas Patra
Introduced in 1988, Kisan Vikas Patra was originally targeted at the farmers which eventually went up to include every citizen. The main objective of this scheme is to inculcate a habit of long-term financial discipline among citizens.
Under this scheme, you can start investments with just Rs. 1000 or with a maximum of Rs 50,000 (initial amount) for a period of 10 years. While the minimum amount is Rs.1000 there is no maximum upper limit. Kisan Vikas Patra offers an interest of 7.5% annually and your investment doubles in 9 years 7 months.
Any Indian citizen can apply for this scheme and can have it individually or jointly. Minors are allowed to open an account through a legal guardian. However, there’s no tax benefit in this scheme.
9. Post-Office Time Deposit Account
Similar to a fixed deposit account, you invest money in a post office time deposit account and earn interest on it. While the minimum investment amount is Rs1000, there is no maximum upper limit.
A time deposit account can be opened for a span of one, two, three or five years and the interest rate varies for each period and ranges between 6.8% to 7.5% per annum. The government revises the interest rates every quarter.
You can invest in this kind of an account either individually or jointly. Even minors aged 10 and above have can operate this account while minors below 10 can operate an account through a legal guardian. However, trust funds, NRIs and welfare funds cannot invest in a post office deposit scheme.
10. Post Office Monthly Income Scheme
Yet another government investment tool, the post office monthly income scheme enables individuals to earn fixed returns on the lump sum amount you have invested. The current rate of interest is 7.4% per annum, payable monthly for a span of five years.
Just like most government investment tools, this scheme also offers individual or joint investment options. In individual account, one can choose to invest a maximum of Rs. 9 lakhs and in case of joint account, the maximum amount permissible is Rs. 15 lakhs. The minimum outlay amount is same for both – Rs. 1000 – joint and individual accounts.
The interest accrued from POMIS can be easily transferred into a Post Office Recurring Deposit Scheme or can be further reinvested into the same scheme in order to earn higher interest. At the time of maturity, you can choose to withdraw the full invested amount or even extend further for another five years and continue earning interest.
The Final Words
If you are planning to begin your investment journey and are looking for risk-free tools with decent enough returns, government investment schemes are definitely one of the best options. However, do remember to engage in proper research and then take the plunge, keeping in mind your risk appetite and investment horizon.
By Sampurna Majumdar
Sampurna Majumder is a communications professional born and raised in Kolkata. Fascinated by creativity from a young age, she has a deep love for music, literature, and world cinema. An avid reader and traveler, she holds a Master’s degree in Literature from the University of Delhi.
Facebook Comments