3 Government-Backed Guaranteed-Return Scheme That Offers 6-7% Interest

When looking for investing, government-backed schemes are the most preferred one by the majority of individual investors. Government-backed investment schemes offer a lucrative return, but, not everything is limited to the returns. It has been seen senior citizens initially use government-backed schemes before investing in other fixed-income channels to obtain monthly income. These schemes provide guaranteed returns that are often greater than those offered by conventional fixed-income assets such as bank fixed deposits (FDs). Furthermore, because these schemes are supported by the Government of India, your investments in them are completely safe and secure. Government-backed saving schemes are without any doubt are one of the most subscribed investment destinations for fixed income options.

3 government-backed schemes that offer a guaranteed return on the investments are as follows:

Senior Citizen Saving Scheme (SCSS)

As the name says, it is a saving scheme designed for Senior citizens. Any Senior citizen in India can invest a large sum in the plan, either individually or collectively with the spouse, and get regular income as well as tax benefits. It is one of the Post Office savings plans with a high return on investment. The account can be opened at the Post Office just as you can at any other licensed bank. To open an SCSS account, you can go to your nearest Post Office office or the bank where you have a savings account. Before creating an account, make sure you understand the qualifying requirements and the features of the scheme. 

Details and Benefits of SCSS  

Rate of Interest	7.40%
Frequency of The Payout	Quarterly
Tenure	5 Years
Availability of premature Withdrawal	Allowed (at a penalty)
Taxability of returns	Taxable
Minimum investment	Rs. 1000
Maximum investment	Rs 15 Lakh and Rs. 30 Lakh (Joint Account)

 

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

If you're saving for retirement and searching for a secure investment, consider investing in the PMVVY, a scheme that provides social security to Indian residents in their old age. The money invested by the scheme's buyers is referred to as the purchase price. Because the system is backed by the sovereign, it provides a guaranteed rate of return on investment. The program pays out a regular pension on a monthly, quarterly, or annual basis. The PMVVY is a great substitute for regular bank deposits.

Details and Benefits of PMVVY

Rate of Interest	7.40%
Frequency of The Payout	Monthly/Quarterly/Semi-Annually/Annually (Options)
Tenure	10 Years
Availability of premature Withdrawal	Allowed (Only Under Exceptional Conditions)
Taxability of returns	Taxable
Minimum investment	Rs 1.57 Lakh
Maximum investment	Rs 15 Lakh and Rs. 30 Lakh (if the Spouse in also Senior Citizen)
Rate of Interest	7.40%

Post Office Monthly Income Scheme (MIS)

Post Office MIS is a scheme that offers a great investment on a monthly basis as the name suggests. With an interest rate of 6.6%, the Post Office MIS, among others, such as the Post Office Recurring Deposit, Post Office Savings Account, and Post Office Time Deposit, is one of the highest-earning schemes. The interest in this arrangement is paid out on a monthly basis, as the name implies. The Ministry of Finance recognizes and validates this plan, as well as other post office schemes. It is simple and painless to open a Post Office MIS Account. To invest in the plan, however, you must have a Post Office Savings Account.

Details and Benefits of MIS

Rate of Interest	6.60%
Frequency of The Payout	Monthly
Tenure	5 Years
Availability of premature Withdrawal	Allowed (at a penalty only after one year)
Taxability of returns	Taxable
Minimum investment	Rs. 1000
Maximum investment	RS 4.5 and Rs 9 Lkah (Joint Account)