Saving Schemes
-
Saving regularly helps build financial stability and achieve long-term financial goals. India offers multiple saving schemes that provide guaranteed returns, tax benefits and retirement planning advantages. Some of the most popular saving schemes include Public Provident Fund (PPF), Voluntary Provident Fund (VPF), Sukanya Samriddhi Yojana (SSY), Equity Linked Savings Scheme (ELSS), National Pension System (NPS) and National Savings Certificate (NSC).
-
1. Public Provident Fund (PPF)
Public Provident Fund is a long-term government backed saving scheme designed to encourage disciplined savings.
- Tenure: 15 Years
- Minimum Investment: ₹500 per year
- Maximum Investment: ₹1.5 lakh per year
- Tax Benefit: Section 80C
-
2. Voluntary Provident Fund (VPF)
Voluntary Provident Fund allows salaried employees to contribute additional funds to their Employee Provident Fund account.
- Contribution above EPF 12%
- Interest similar to EPF
- Long term retirement savings
-
3. Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana is a government saving scheme created to secure the financial future of a girl child.
- Available for girls below 10 years
- Tenure: 21 years
- Minimum deposit ₹250
-
4. Equity Linked Savings Scheme (ELSS)
ELSS is a tax saving mutual fund that invests in equity markets and provides the potential for higher returns.
- Lock-in Period: 3 Years
- Tax deduction up to ₹1.5 lakh
- Higher return potential
-
5. National Pension System (NPS)
National Pension System is a retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority.
- Long term retirement investment
- Tax benefit under 80C and 80CCD
- Flexible asset allocation
-
6. National Savings Certificate (NSC)
National Savings Certificate is a fixed income investment scheme available through post offices.
- Tenure: 5 Years
- Minimum Investment ₹1000
- Government backed savings option
Saving Schemes Comparison
| Scheme | Lock-in Period | Risk Level | Tax Benefit |
|---|---|---|---|
| PPF | 15 Years | Very Low | 80C |
| VPF | Till Retirement | Very Low | 80C |
| Sukanya Yojana | 21 Years | Very Low | 80C |
| ELSS | 3 Years | Medium | 80C |
| NPS | Till Retirement | Medium | 80C + 80CCD |
| NSC | 5 Years | Low | 80C |