Small Savings Schemes: If you want to do small investment planning then these schemes are best for you. Your money will never sink on these.
Small Savings Schemes: The government had recently taken a big decision that there will be no change in the interest rate on small savings schemes for the July to September quarter. According to the notification issued by the Ministry of Finance, the interest rate on many small savings plans for the second quarter of the financial year 2021-22, starting from July 1, 2021, and ending on September 30, 2021, will remain the same as before.
Actually, in the time of corona virus, the government has given this decision as a relief for small savings plans and middle class people. Small Savings Scheme is one of the best and preferred debt investment options for Indians. Though they offer higher interest rates only for long-term investments, some of these come in handy even when money is needed for financial emergencies.
These two small savings plans give loans
National savings certificate
The National Savings Certificate is a five-year product, on which you get an interest rate of up to 6.8%. You can invest a minimum amount of Rs 1,000 in NSC, in which there is no limit to deposit the maximum amount. It can be bought for Rs 1000 and its multiples. Apart from this, only investment of Rs 1.5 lakh will be eligible for deduction under section 80C. You can buy these devices from any post office. Annual interest is available on NSC, but you get it only on maturity. At present, the interest rate on NSC is 6.8%.
Kisan Vikas Patra
At present, 6.9 percent interest is being given in Kisan Vikas Patra. If you want to invest in this scheme, then this amount doubles in the next 10 years and 4 months. Which is also the maturity period at this time. An investor can invest a minimum amount of Rs.1,000. Because there is no limit to invest in KVP. Apart from this, if you are looking for long-term savings plans, KVP allows investors to prematurely withdraw their money. On the other hand, if you withdraw it within one year of purchasing the certificate, not only will you lose interest, but you will also have to pay a fine.
Apart from this, if you withdraw money between one year and two and a half years from the date of purchase of the certificate, then there will be no penalty, but your interest will be reduced. Withdrawals are allowed at any time after two and a half years and there is no penalty or reduction in interest.
Loan Against Small Savings Schemes
According to the website of Bank of Baroda, if the remaining maturity period is less than 3 years, then you can get a loan of up to 85% on the value of these two small savings plans. If the Residual Maturity is more than 3 years, then up to 80 percent of the Borrower Value can be availed on the loan. An individual can also pledge these securities for overdraft facility.
According to the website of State Bank of India, about 11.9% interest rate is charged for loans on these devices. Let us tell you that an investor can pledge these products only to banks, non-banking financial companies, public and private corporations, government companies, local authorities and specified institutions including the President of the country and the Governor of a state. Is.