Market Up or Down? Now Your Money Won’t Sink — Just Put It in These 4 Places for Big Returns!

New Delhi(The Uttam Hindu): In today's world of fluctuating stock markets, many cautious investors are seeking out safer options that promise reliable returns and full capital protection. A range of government-backed savings schemes is becoming increasingly popular, offering guaranteed interest and tax benefits while remaining unaffected by market volatility.

The Public Provident Fund (PPF) stands out as one of the most trusted long-term investment choices. With the backing of the central government, PPF currently provides a 7.1% annual interest rate and requires a 15-year lock-in period. Both the interest earned and the maturity amount are completely tax-free, and investors can also claim tax deductions of up to ₹1.5 lakh under Section 80C of the Income Tax Act.

For parents with young daughters, the Sukanya Samriddhi Yojana is an excellent option. Tailored for girls under 10, this scheme boasts an attractive interest rate of up to 8.2% per annum. The maturity amount is fully exempt from tax, and the account remains active until the girl turns 21 or gets married. Similar to PPF, investments in this scheme are eligible for deductions under Section 80C.

Another dependable choice is the National Savings Certificate (NSC), which can be accessed through any post office. Currently offering a 7.7% interest rate compounded annually, NSC has a five-year lock-in period. While the interest earned is taxable, the principal investment qualifies for tax relief under Section 80C.

On the other hand, the Kisan Vikas Patra (KVP) appeals to rural and conservative investors due to its straightforwardness and security. With an interest rate of 7.5%, KVP doubles the invested amount in about 115 months (roughly 9 years and 7 months). Although it doesn’t provide 80C tax benefits, its risk-free nature and availability at post offices make it a popular long-term savings option.

These government schemes are proving to be effective safeguards against market unpredictability, providing a sense of security for risk-averse investors. Financial experts suggest that such instruments are crucial for those looking for stable, tax-efficient returns.