As FD, savings account interest rates plunge, where to make more money? PPF, Post Office schemes, or something else? Pad your pocket

When fixed deposit (FD) and savings account interest rates are falling, which schemes should you invest in – PPF or post office? Are there safe investment options with good returns? In this edition of Money Guru, Zee Business Guest Kalpesh Ashar gives solutions on all your financial management issues. Ashar is the founder of Full Circle Financial Planners and Advisors.  

Unfortunately, interest rates on savings accounts have fallen anywhere between 4.5 per cent to 2.7 per cent. So, one should invest in those fixed income schemes which give higher returns than savings bank accounts.  

Know about these small saving schemes and interest rates: 

PPF – This is Public Provident Fund. It is currently giving returns of 7.1 per cent per annum. The maturity period is 15 years. One person can open only one account. You can open an account even by sitting within the comforts of your home. 

POMIS – This is Post Office Monthly Income Scheme. It is currently giving interest rates of 6.60 per cent per annum. You will get a fixed income every month. The maturity period is 5 years. You can increase the period in the slab of 5 years. Maximum investment is Rs 4.5 lakh for individual and Rs 9 lakh for a joint holder. Pre mature withdrawal can invite penalty. Any Indian above 10 years can open the account.

POTD – This is Post Office Time Deposit scheme. It gives returns at the rate between 5.50 and 6.70 per cent per annum. The time period is 1 year, 2 year, 3 year and 5 year. There is no maximum limit of investment. The interest income is annual. You can open this account in banks also.

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Scheme for senior citizens: There are many schemes for senior citizens. One is Pradhan Mantri Vaya Vandana Yojana. This scheme is currently offering interest rate of 7.4 per cent on your investments. Another scheme is Senior Citizens Savings Scheme (SCSS). It is offering interest on your investment at interest rate of 7.4 per cent. Senior Citizens can also invest on Government Bonds which are offering interest rate of 7.15 per cent.