Investing in government small savings schemes is considered a profitable deal. Small savings schemes include Public Provident Fund i.e. PPF, Senior Citizen Savings Scheme, Sukanya Samriddhi Yojana etc.
These schemes are for all categories of people, which provide many benefits ranging from tax benefits to guaranteed returns. More and more people like to invest in these savings schemes. It has many benefits, let us know the benefits of Small Saving Scheme.
1. Guaranteed Returns
Small savings schemes include Public Provident Fund i.e. PPF, Senior Citizen Savings Scheme, Sukanya Samriddhi Yojana etc. All these small saving schemes give guaranteed returns. In this you know that you are going to get this much amount in this time.
2. Financial Independence and Stability
If you have invested in small savings schemes, then it has so much potential that it gives financial independence and stability to yourself and your family. Small savings schemes serve as the foundation of secure, regular income and a strong financial strategy.
3. Income tax exemption
Many small savings schemes provide the benefit of tax exemption. Under Section 80C of Income Tax, you can save up to Rs 1.5 lakh. Schemes like PPF, Senior Citizen Saving Scheme, Time Deposit and FD provide the benefit of tax exemption.
4. Minimum investment
Investors will have to make minimum investment. Depending on the small savings schemes, the amount can range from ₹250 to ₹1,000. You can also invest small amounts in these schemes.
5. Income assurance
In today’s time, people are investing in risky places like share market and mutual funds. Whereas small saving schemes provide assurance of income. With a fixed interest, you know in advance how much amount you will get on maturity. Meaning you will be guaranteed to get income in the future.
