There are many safe options for investment of hard-earned
money in India.
Five such schemes are as follows:
PPF
(Public Provident Fund): It is considered as a good tax saving option. It
is a long term savings plan provided by many main branches of nationalized
banks, head post offices and GPOs. The normal tenure for such plan is
around 15 years at the rate of interest of 8% per annum. Also, the
interest earned is completely free from income tax. Any adult is eligible
to open a PPF account. Infrastructure
Bonds: These bonds are issued by ICICI and IDBI banks in the name of ICICI
Safety Bonds and IDBI Flexibonds. The investor receives interest at the
rate of 7.25% or 7.50% per annum on these bonds. One can save tax on these
bonds provided that he/ she does not sell them for atleast 3 years. Kisan
Vikas Patra: KVP Certificates can be acquired from post offices all over India.
The scheme belongs to Indian government and is a very good investment
option as the principal amount invested gets doubled in eight years and
seven months.
Premature withdrawal can also be made after 2 years and 6
months. The denomination of certificates is in following manner: Rs.100/-,
Rs. 500/-, Rs. 1000/-, Rs. 10000/- and Rs. 50000/-. However, it is not a
tax saving option.FD
(Fixed Deposit): FDs can be acquired from any bank for a certain amount of
money. Banks have various sets of tenures and respective interest rate for
their Fixed Deposit Schemes. Again, it does not provide any tax benefit. NSC
(National Savings Certificate): This is another scheme offered by Indian
government. It is also a tax saving option. NSCs are available at post
offices all over India.
The tenure for NSCs is 6 years with rate of interest of 8% compounded
twice an year. All adults are eligible to buy National Savings
Certificates.