Top 6 Government Investment Schemes to Invest in 2022

Best government investment schemes to invest in India are the only way to assure a better future for ourselves and our loved ones.  By making investments, one can save and accumulate sufficient corpus for any eventual financial downturn. In India apart from the plethora of investment options available right from the share market to real-estate, crypto market, the mutual fund, and pension schemes, etc. the government also offers various investment schemes.  

List of Government Investment Schemes

People generally are inclined towards investing in much safer options with minimal risks involved, and the top government investment schemes to invest in are known to be the safest,  below is the list of government investment schemes to invest in 2021:-

1. National Savings Recurring Deposit Account (RD)​​

An account under this best government investment schemes to invest in India can be opened with as low as rupees 100 at any Post Office. Individuals can open their accounts by making the first deposit by cash or cheque, account holders can nominate a nominee for their account under this best Indian government scheme.

 Accounts under the National Savings Recurring Deposit Scheme are transferable across post office branches; one good part about this best investment scheme in India is that there is no capping on the number of accounts that can be opened.  Minor accounts would be converted to full-fledged accounts once the minor account holder attains the age of maturity under this government investment scheme 2021.    

Rate of Interest- The current rate of interest on this top government investment schemes to invest is 5.8% p.a. 

2. Public Provident Fund Account (PPF )​

• Public provident fund is one of the best government investment schemes to invest in India. Among the various investment options issued by the government, this is the best government schemes to invest in 2021. This is the best investment scheme in India because it is tax-free so there is no headache of paying taxes. 
• When investors are through with the process of investing in the list of government investment schemes, their investment is locked for 15 years. In this particular period, investors can also earn compound interest on their invested finances in these top government investment schemes to invest. 
• In this type of government investment scheme 2021, the investors have the option to extend the lock period by 5 more years on their investment. 

Some essential features of PPF are:-

1. Tenure: The PPF has a minimum tenure of 15 years, which can be extended in blocks of 5 years as per your wish in this best government investment schemes to invest in India.
2. Investment Limits: PPF allows a minimum investment of Rs 500 and a maximum of Rs 1.5 lakh for each financial year in this best investment scheme in India. 
3. Opening Balance: The account can be opened with just Rs 100 in this list of government investment schemes 2021. 
4. Deposit Frequency: Deposits into a PPF account have to be made at least once every year for 15 years in this top government investment schemes to invest.
5. Mode of deposit: The deposit into a PPF account can be made either by way of cash, cheque, Demand Draft, or through an online fund transfer in the best investment schemes in India.
6. Nomination: A PPF account holder can designate a nominee for his account either at the time of opening the account or subsequently in this best Indian government schemes.
7. Joint accounts: A PPF account can be held only in the name of one individual under this best government schemes to invest in 2021.
8. Risk factor: Since PPF is backed by the Indian government; it offers guaranteed, risk-free returns as well as capital protection in this government investment scheme 2021. 

3. Sukanya Samriddhi Yojana (SSY):-

One of the best government schemes to invest in India, Sukanya Samriddhi Yojana is a scheme that has been started by the government of India. One of the best Indian government schemes, this scheme focuses on the parents of a girl child. Under these best investment schemes in India, the government encourages the parents of a female child to invest and save for the child’s education and marriage. One of the top government investment schemes to invest in, this scheme has an interest rate of 7.6%. The least amount of money that can be contributed to the best government schemes to invest in 2021 is rupees 250 and the maximum is rupees 1,50,000 per year.

Some key features of this government saving scheme are:-

1. The account can be opened by the natural or legal guardian for a girl child of age below 10 years in this top government investment schemes to invest.
2. A depositor can open and operate only one account in the name of a girl child under best Indian government schemes rules.
3. A natural or legal guardian of a girl child is allowed to open the account for two girl children only in this best government schemes to invest in 2021.
4. Deposits in an account can be made till the completion of 14 years, from the date of opening of the account in this best government investment schemes to invest in India.
5. In this best government investment scheme, the account of an individual will mature after a fixed period of 21 years after the time when the account was first opened. If the account holder gets married before the maturity of her account then the account will be deemed matured and shall not continue in service under this best Indian government scheme.
6. Passbooks will be issued to customers in this top government investment schemes to invest.
7. Withdrawal Facility
   1. To meet the financial requirements of the account holder for higher education and marriage, an account holder can avail partial withdrawal facility after attaining 18 years of age in these best investment schemes in India.
   2. If the beneficiary is married before the maturity of the account, the account has to be closed.

Rate of interest– Currently this best investment schemes in India offers a rate of interest of 7.6%

4. National Savings Certificate (NSC)

The best government investment schemes in India is a savings product of post office savings. This best Indian government scheme is an initiative that is taken by the government of India. This best government investment scheme in India focuses on encouraging middle-class workers to invest all the while saving on income tax. This scheme will provide a fixed income and is a low-risk scheme. This scheme can be sought in any post office for a minor or with an adult as a joint account. This investment scheme comes with a maturity period of 5 years and the rate of interest on your investment through this scheme is 6.8% per annum. The rate of interest on these schemes introduced by the government of India is revised regularly. 

Features and benefits of the scheme:-

1. Fixed income: Currently, the scheme is generating a guaranteed return at the rate of 6.8% for investors under this best Indian government scheme.
2. Types: The best investment schemes in India originally had two types of certificates – NSC VIII Issue and NSC IX Issue.
3. Tax saver: As a government-backed tax-saving scheme, you can claim up to rupees 1.5 lakh under the provisions of Section 80C of the Income Tax Act, 1961. 
4. Start small: You can invest as low as rupees 1,000 (or multiples of rupees 100) as an initial investment, and increase the amount when feasible under this government investment schemes 2021.
5. Interest rate: Currently, the rate of interest is 6.8% p.a., which the government revises every quarter in this best government schemes to invest in 2021.
6. Maturity period: The maturity period is five years in this best Indian government schemes.
7. Access: You can purchase this scheme from any post office by submitting the necessary documents and undergoing the KYC verification process. Loan collateral: Banks and NBFCs accept NSC as collateral or security for secured loans in this best government investment schemes to invest in India.
8. Power of compounding: The interest you earn on your investment gets compounded and reinvested by default, though the returns do not beat inflation in these best investment schemes in India.
9. Nomination: The investor can nominate a family member (even a minor) so that they can inherit it in the unfortunate event of the investor’s demise in this top government investment schemes to invest.
10. Corpus after maturity: Upon maturity, you will receive the entire maturity value. 
11. Premature withdrawal: Generally, one cannot exit the scheme early. 

5. Kisan Vikas Patra (KVP):-

Kisan Vikas Patra is on the list of government investment schemes and is one of the best Indian government schemes. The government aims to encourage people to invest for a longer time with these best investment schemes in India. According to the latest revision done by the government of India, if an individual opts for this scheme between the period of the 1^st of July 2021 and 30 September 2021, they will receive the tenure of 10 years and 4 months which totals to 124 months in all. The minimum amount of money that can be invested in this scheme is rupees 1000 rupees and there is no limit on the maximum amount of money that can be invested in this scheme. The advantage of this scheme is that if people invest money in bulk in this scheme, their money will be doubled at the end of this scheme.

Kisan Vikas Patra was started with the goal of farmers’ welfare in mind. Under this scheme, the farmers can think of safely investing for a long-term period. Because money laundering was rampant under this government investment schemes in 2021, the government of India made it necessary for the farmers to provide proof of pan card if they want to invest money over 50,000. If individuals want to deposit over 10 lakhs then they need to submit their proof of income. This best government schemes to invest in 2021 carries a low risk and individuals can invest their savings in this scheme without any fear.

Kisan Vikas Patra is of the following three types:

• Single Holder Type Certificate: This type of Kisan Vikas Patra certificate can be issued to an individual above 18 years of age or to a minor. This certificate can also be issued to an adult in the place of a minor, though the certificate will be used by the minor themselves.
• Joint ‘A’ Type Certificate: This type of Kisan Vikas Patra certificate is issued to two adults who are above 18 years of age. These two adults hold the account together and are liable for it. In case of the death of either of the two account holders, the survivor will receive the investment on maturity.
• Joint ‘B’ Type Certificate: This type of Kisan Vikas Patra certificate is issued to two adults who are above 18 years of age. These two adults hold the account together and are liable for it. In case of the death of either of the two account holders, the remaining holder or the survivor will receive the investment on maturity.

Key features and benefits of the scheme:

1. Regardless of the market fluctuations, you will get the sum guaranteed by government investment schemes 2021.
2.  It is a safe mode of investment and not subject to market risks in this top government investment schemes to invest. 
3. The maturity period for Kisan Vikas Patra is 124 months and you can avail the corpus then under this government investment schemes 2021.
4. Though the account matures after 124 months, the lock-in period is 30 months in this best government investment schemes to invest in India. 
5. You can use your KVP certificate as collateral or security to avail of secured loans under these best Indian government schemes. 
6. Collect a nomination form from the post office, and fill up the required information of the nominee in this best Indian government scheme.
7. If payment is done through cash, they issue the KVP Certificate on the spot in this best government schemes to invest in 2021. 

Rate of interest – The effective interest rate for Kisan Vikas Patra varies depending on the number of years invested in KVP at the time of purchase. The current interest rate on these best investment schemes in India is 6.9% p.a. 

Note: It doesn’t come under the 80C deductions, and the returns are completely taxable.

6. Senior Citizens’ Savings Scheme:-

 Senior Citizens’ Savings Scheme is one of the best investment schemes in India. This government investment schemes 2021 is solely created for the use of senior citizens. The minimum amount of rupees that can be deposited in the Senior Citizens’ Savings Scheme is rupees 1000 and the maximum amount of rupees that can be deposited in the Senior Citizens’ Savings Scheme is rupees 15 lakh. Individuals who are eligible to open an account under this best government investment schemes to invest in India are individuals above the age of 60 years or those citizens who are over the age of 55 years and have retired under superannuation, VRS, or special VRS.

Key features of the scheme:-

1. SCSS is an Indian government-sponsored investment scheme and hence is considered safe and most reliable
2. The SCSS account includes a simple process and can be opened at any authorized bank or any post office in India.
3. The account is transferable across India in government investment schemes 2021.
4. The scheme offers a high-interest rate on the deposit of the best government investment schemes to invest in India.
5. Get an income tax deduction of up to Rs.1.5 lakh under Section 80C of the Indian Tax Act, 1961.
6. The 5-year tenure of the account can be extended for another 3 years in this government investment scheme 2021.
7. It can be opened in any bank or at the nearest Post Office in this top government investment schemes to invest.

Apart from the Kisan Vikas Patra, all other government saving schemes mentioned here provide tax benefits under section 80 C. However, the rate of interest mentioned on all the above schemes may change as it is subjected to government policies.

Top 6 Government Investment Schemes To Invest – FAQs

Q1. What is the level of safety in the best investment schemes in India?

Ans. The level of safety is highest in these best investment schemes in India because they are backed by the government of India.

Q2. Can we continue PPF after 15 years?

Ans. After the 15 years lock-in period, you can extend its maturity by applying.

Q3. Can Monthly Income Scheme (MIS) interest be credited to the National Savings Recurring deposit account?

Ans. No. The interest earned on a Monthly Income Scheme cannot be credited to your National Savings Recurring deposit account.

Q4. When does a Kisan Vikas Patra mature?

Ans. The maturity period of the account shall be -112 months (nine years and four months) for Investment Date before 01.04.2020 and 124 months (10 years & 4 months) for (Investment date on or after 01.04.2021 commencing on the date of the Certificate.)

Q5. Which are the best investment schemes in India?

Ans. Following is the list of government investment schemes 2021:

1. National Savings Recurring Deposit Account
2. Public Provident Fund Account
3. Sukanya Samriddhi Yojana
4. National Savings Certificate
5. Kisan Vikas Patra
6. Senior Citizens’ Savings Scheme