What are the different investment schemes that are provided by the government?



What are the different investment schemes that are provided by the government?
  1. Sukanya Samriddhi Yojana: This scheme was launched by the prime minister Narendra Modi for the betterment of women literacy rate. Girls should not be left behind and so a campaign "Beti Bachao Beti Padhao" started in 2015. An account can be opened anytime between 0 to 10 years of age in the name of the daughter. The account is operative until the girl reaches 21 years of age and the minimum and maximum investment in the policy are Rs.1000 and Rs.150000 respectively.
  2. National Pension Scheme: This is one of the most successful and famous schemes that was launched by the government. An account can be opened by anyone between the age of 18 to 60 and you also get a tax benefit for investing in this fund. For government employees this scheme is compulsory. The scheme aims to provide a financially stable retirement. The money is invested in bonds, government securities, and equities.
  3. Public Provident Fund: Public Provident Fund is one of the most lucrative looking schemes that the government offers. The reason is that all the principal, the interest earned and the withdrawn amount is exempt from tax. A tax deduction of Rs.150000 is provided under the section 80C of the income tax act. An interest rate of 8% is provided on the PPF balance.
  4. National Saving Certificate: Bank usually provide an interest of 4-6% on the principal amount and also there is no tax benefit above Rs.10000 interest. So to promote the habit of saving among the country's people, the government came up with NSC wherein a minimum of Rs100 to no max limit can be invested in the scheme. Other than that you get a tax benefit of Rs150000 under section 80C of the income tax act. Furthermore, the interest rate also ranges from 7.6% to 8% which is a tad bit more than bank saving account.
  5. Atal Pension Yojana: This scheme caters to a very specific group i.e. the unorganized worker group. The scheme aims to provide this worker group with an opportunity to get a pension in their old age. A worker between the age of 18-40 years with a valid bank account is eligible to apply for the APY scheme. The only constraint here is that a contribution should be made in this account until the age of 60. Even self-employed Indian citizens can apply for this scheme.
  6. Pradhan Mantri Jan Dhan Yojana: This scheme aims to provide basic financial services such as savings account, deposit account, insurance, credit, pension, etc. to the weak and scattered sections of society. The demographic study showed that many people didn't even have a bank account before. The coming up of this scheme led to the opening of more than 33 crore accounts by January 2019. Minimum age limit for a minor is 10 years and for a major account, age above 18 years is required. One can exit this scheme only after attaining 60 years of age.
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