Government savings schemes in India 2020

Government savings schemes: Government of India and public sector banks launched a various schemes for the citizen of India for short and long term investments. As compare to mutual fund investments, government schemes are more reliable and low risk in terms of return with fixed interest on regular basis. Government of India launched a government savings schemes 2020 for the citizen of India.

Savings schemes in India 2020
Savings schemes in India 2020

Apart from that, every salaried employee now option to invest in Employee provident fund(EPF) or not but in mostly organization it is mandatory for tax benefits and retirement plans.

Various savings schemes as below:

1. Fixed deposits

Traditionally, fixed deposits (FD) is a very low risky and most priority by Indian citizen to accumulate fixed return after years of tenure. Fixed deposits are now provide by Public sector banks, Private sector banks, Non-banking financial institutes and post office as well.Usually 5 years is a fixed tenure for fixed deposits in mostly Post office and public sector banks.Now onward, Private sector banks and NBFC also provides no minimum tenure for the fixed deposits and calculate interest accordingly.

2. Recurring deposits

Unlike fixed deposits people need a good amount of fund to invest for a good return. For the small investors, recurring deposits is a good option to invest small amount monthly for a fixed tenure with a fixed rate of interest. All the public sector banks and few private sector banks provide facility for recurring deposits of the specific tenure. For the public sector banks/ post office , the minimum tenure is 4 years . While, many private banks provides facility to minimum 1 year and also premature withdrawal of deposits.Public provident fund

3. Public provident fund:

Public provident fund is a nationalized scheme that provides compounding interest annually and the minimum tenure of 15 years by various public sector banks and post-office as well.This scheme are very useful for the future plans and savings for the individuals.Also, in income tax slab it is also non- taxable up to 1.5 lakhs. Anyone can invest minimum 500 to 1.5 lakh per year anytime and able to earn interest after 15 years. Minimum maturity period for PPF is 8 years.

There are various other schemes also, that we can provide in separate category.