Safe Investment Plans That Beat Bank Interest Rates

Safe Investment Plans: It is known that keeping the money earned safely is as important as getting returns on it. That is why many people invest their money in various schemes. Let us now know about the best such schemes.

Better Safe Investment Plans than banks

Those who want a fixed income initially prefer bank fixed deposits. However, there is no doubt that the Central Government’s Small Savings Schemes are a better alternative than bank fixed deposits because they offer high interest rates, government guarantees, and security.

Some government schemes offering high interest rates

* Public Provident Fund (PPF) – 7.1% interest

* National Savings Certificate (NSC) – 7.7% interest

* Senior Citizens Savings Scheme (SCSS) – 8.2% interest

* Post Office Time Deposits (5 years) – 7.5% interest

The interest rates in these schemes are very high compared to banks. SCSS is especially beneficial for adults.

What is the difference compared to bank FD interest rates?

The current interest rates (for 5-year FDs) of leading banks are as follows.

* SBI: For general customers – 6.3%, for senior citizens – 6.8%

* HDFC: For general public – 6.4%, for senior citizens – 6.9%

* ICICI: For general customers – 6.6%, for senior citizens – 7.1%

* PNB: For general customers – 6.5%, for senior citizens – 7.0%.

Bank FD interest rates fall as repo rate drops

With the RBI reducing the repo rate by 100 basis points in February 2025, many banks have reduced their FD interest rates. But at the same time, the central government has kept the interest rates in its schemes unchanged and stable. Due to this, people are showing interest towards saving schemes.

Security as well as income

Although bank deposits are also safe, they are insured under DICGC (Deposit Insurance and Credit Guarantee Corporation) only up to Rs. 5 lakh. That is, the deposit above that is not completely safe. But unlike this, PPF, NSC, SCSS are schemes run with the guarantee of the central government. That is why there is complete security along with a guarantee of interest income.

Who is eligible for which scheme?

* Senior Citizens Savings Scheme is the best option for the elderly. It offers an interest rate of 8.2% on annual income. A maximum investment of Rs. 30 lakhs can be made in this.

* There are also schemes like Monthly Income Schemes (POMIS) for those seeking a fixed income.

* Those who want tax exemption can avail tax exemption under I.T. Section 80C on PPF and NSC schemes.

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