It is true that everyone is looking for good returns from their investments. However, at the same time, they want that their capital should be protected. Keeping your capital safe is the primary priority for most of us and getting good returns always comes second. Whether you want to accomplish short-term goals or long-term goals safety is an absolute essential.
Here is a list of 9 safe accounts in India that keep your investment guarded and basics protected.
1. Savings Account
A savings account is one of the most common safe accounts in India. Most of us hold at least one savings account. It is a basic account that you can open with any bank. Each bank has a set amount as a minimum balance that has to be maintained. When certain specific conditions are met, a savings account can also be opened with zero balance in hand. The withdrawal or deposit into this account can be made at any time without any restrictions. This account can be linked to other accounts such as the fixed deposit, PPF account and so on. Salaried people often use this account to receive their salary. A specific interest rate is paid on the account balance to each savings account holder each A Debit Card is issued and linked to a savings account that can be used at an ATM for making withdrawals, to make purchases and payments.
2. Fixed deposit (FD)
A Fixed Deposit is one of the most reliable safe accounts in India. This is mostly used to save money for a fixed duration and money can only be withdrawn after maturity. The interest rate associated with a fixed deposit is higher than that of the savings account and varies for different fixed periods. Any number of fixed deposit accounts can be opened in an individual’s name, and it can be linked to his/ her savings account. This account can be renewed after it matures. You can also avail a loan against your fixed deposit. There is no set restriction on the number of fixed deposits that you can make with the bank.
3. Recurring deposit (RD)
Recurring deposit is one of those safe accounts in India that has similarities to a fixed deposit account. It is a regular mode of saving on a monthly basis. The amount is fixed in this account for a fixed duration of time. In the case of an RD, you have to make monthly The minimum period for an RD is 1 year, and the maximum is 10 years. The deposit amount for an RD should be the same each time. During the whole tenure of an RD account, the interest rate will remain the same. The interest income generated through this account will be subjected to a tax deduction if the amount exceeds Rs 10,000 in a year.
4. Public Provident Fund (PPF)
A PPF account is suitable for people who have a long-term saving goal. The tax saving benefit coupled with the good interest rate makes a PPF account The tenure of a PPF is 15 years, and it can be extended each time for a block of 5 years. You can avail a loan against the balance in PPF account. A PPF account also comes with a partial withdrawal facility. The depositor avails tax deduction benefit under section 80C of the Income Tax Act.
5. National Saving Certificate (NSC)
This is one of the most people friendly safe accounts in India. You can open this account with a post office. It is considered to be an advanced version of an ordinary fixed deposit. It gives the depositor the benefit of tax deduction under section 80C of Income Tax Act. With the tax benefit associated with it, NSCs are in great demand now. The rate of interest rate is fixed and the minimum lock-in period is 5 You can avail loans from banks by keeping your NSCs as mortgages. As a depositor you get a pre-printed certificate of investment, this means that you know the maturity amount in advance.
6. Monthly Income Scheme
A monthly Income Scheme is one of the most stable income generating safe accounts in India. People seeking a regular fixed amount of income every month can opt for this A Monthly Income Scheme matures in 5 years. After the completion of 5 years, the initial deposit amount is returned to the depositor and thus is a safe option. It can be opened with both post offices and banks. Premature withdrawal of the amount is possible under certain conditions. You must deposit a minimum of Rs.1500 in a monthly income scheme. The maximum amount of deposit that you can make is Rs 4.5 Lakhs, and in case of a joint account, the maximum deposit ceiling is Rs. 9 Lakhs.
7. National Pension Scheme (NPS)
National Pension Scheme is a retirement saving option and is considered one of the most dependable safe accounts in India. Under this Scheme at least once a year investment is necessary, and there is no limit to the maximum deposit. 40% of the deposit can be withdrawn as a lump sum amount. When the depositor completes 60 years, the scheme matures. Its features are similar to that of mutual funds. The return in this investment is based upon the condition of markets at that given point of time.
8. Sukanya Samriddhi Account (SSA)
Sukanya Samriddhi Account is one of the most girl child future securing accounts. It is one of the most favored safe accounts in India. This high-interest rate paying scheme can be opened in the name of the girl child by a parent or a guardian before she completes 10 years of age. You are eligible to open only 2 SSAs, one for each girl child. There is no maximum limit associated with the number of deposits that you can make in a year, but the maximum deposit cannot exceed Rs 1.5 lakh in a single year. The account matures, and the full invested amount along with interest earned can be claimed when the girl child attains the 21 years of age. This scheme is also eligible for certain tax benefits. It was launched by the Government of India to help parents secure a good future for the nation’s girl children.
9. Senior Citizen Saving Scheme (SCSS)
An SCSS is most suitable for senior citizens of the nation. This scheme offers regular and stable returns. You must be a senior citizen depositing a lump sum amount in order to open an SCSS account. The maximum limit of depositing in an SCSS Account is Rs. 15 Lakhs. This scheme yields a comparatively high rate of interest. An SCSS matures at the end of 5 years. It can be extended for a period of 3 years. You can prematurely close this account with a nominal penalty. This scheme comes with a tax benefit under section 80C of Income Tax Act.
These are some of the most sought-after safe accounts in India that give you stable returns and capital protection that you are looking for. They are almost all no-brainer options and will keep your worried side at bay.