Best Government Schemes to Invest in India (2023)

Check out the below mentioned best Government schemes to Invest in India in 2023

• Atal Pension Yojana (APY)

The Government of India provides employees in the unorganized sectors with the Atal Pension Yojana (APY), a social security plan. It is counted among the most significant investment schemes in the country, when it comes to economically disadvantaged people saving money for the retirement. A monthly pension of Rs 1,000 to Rs 5,000 is paid out to subscribers of this scheme, depending on their age and participation. To enroll, you must be non-income tax paying and not lesser than 18 years old, and also not older than 40 years. The minimum contribution term is 20 years since it provides a pension beginning at age 60 years.

• Public Provident Fund (PPF)

Public Provident Fund (PPF) has developed into a significant vehicle for extra wealth creation for investors since its commencement. Investors create huge sum by consistently putting money into their PPF accounts over years. Due to its benefitting interest rate and tax advantages, the PPF has attracted huge customers, particularly younger depositors. At any time after the expiry of 1 year from the end of the year in which the initial subscription was made but before expiry of 5 years from the end of the year in which the initial subscription was made, the account holder may apply for obtaining a loan consisting of a sum below or 25% of the amount that stood to credit at the end of the second year immediately preceding the year in which the loan is applied for.

• Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana is a welfare plan backed by the government. It was introduced as part of a ‘Beti Bachao, Beti Padhao‘ campaign. This is the government investment scheme in India particularly prepared for the financial requirements of a female child. The plan was introduced in the year 2015 by Prime Minister Narendra Modi. The program is designed to help parents save up money for their daughter’s higher education, marriage, and etc.

Under the program, a girl under ten years can have an account opened in her name by her parents or legal guardians. The amount ranges from Rs 250 to Rs 1,50,000 each financial year for 15 years from its opening date. The program has a lock-in term of 21 years, even if the returns are better than comparable fixed-income schemes. Another advantage is when a girl reach the age of 18 years, she can make a partial withdrawal. Any financial institution or PO will accept your application for an Sukanya Samriddhi Yojana account.

• National Pension Scheme (NPS)

The National Pension Scheme (NPS) is a retirement benefits program to ensure its members have a steady income once they retire. Each subscriber to the NPS is given a permanent retirement account number. An investor can divide their capital between stocks and bonds or other safe investments. In simple words, there is no upper limit for NPS contributions. Investments up to Rs 50,000 can avail of a tax relief or deduction under Section 80CCD (1B) of the Income Tax Act. Section 80C of the Income Tax Act allows for a tax deduction on investments of up to Rs 1,50,000.

• Sovereign Gold Bonds (SGBs)

Initiated by Indian Government, the Reserve Bank of India (RBI) issues Sovereign Gold Bonds . These Gold-backed government bonds are known as SGBs. The government created the SGB Scheme in November 2015 as an alternative to physical gold ownership.

The Gold Bond provides an interest of 2.5% yearly on the issue price, in addition to the price fluctuation gain. Half-yearly, the accumulated interest gets deposited into the investor’s designated savings account. Being a paper based instrument, the SGB avoids the danger and expense of long-term storage. Since early redemption is permitted after the 5th year, this investment choice is deemed liquid. Additionally, SGBs may be sold in a pinch or used for secured loans with them as collateral. They deliver a similar Loan to Value ratio as a loan secured by actual gold.

• Senior Citizens Savings Scheme (SCSS)

The Senior Citizen Savings Scheme (SCSS) is the most favored option and is considered among the best government schemes in terms of investment. The program was established to secure the future of those aged 60 years and up. It has a 5-year term that can be extended by another three years, and its interest rate is more significant than other low-risk investing alternatives.

Government Investment Plans and Who can Benefit

PlanBeneficiaries
Public Provident FundThose who wish to earn great returns on investment
Sovereign Gold BondsThose interested in locating other ways of holding actual gold for financial purpose
Sukanya Samriddhi YojanaParent of a girl child on behalf of the beneficiary can open the account any time after the birth & until she turns 10 years old. 
Atal Pension Yojanafinancially weak sections of society and Non-tax payee between the ages 18-40 year
National Pension SchemeBetween 18 -70 years
Senior Citizens Savings SchemeSenior citizens who are aged 60 years and more

Conclusion

To safeguard its citizens’ future financial stability, Government provides many schemes and programmes. If you want to secure your financial future, choose among the new government schemes or investments that you could make.

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