How to Invest your money in Government Scheme?
Hi Guys,
Today's Topic is 'How to Invest your money in Government Scheme'. Government has made different type of scheme for people to invest their money and they get an benefits from it. So we will discuss the scheme's benefit and criteria etc. So let's begins.
Money saving Scheme of Government listed below :
- National Pension Scheme
- Atal Pension Scheme
- Swavalamban Pension Yojana
- Post Office Monthly Income Scheme
- Pradhan Mantri Vaya Vadana Yojana
- Systematic withdrawal Plans of Mutual funds
- Monthly Income term insurance.
1) National Pension Scheme-
It is a voluntary defined contribution retirement saving scheme which has introduced for providing adequate retirement income to every citizen of India. The pension fund which is a pool of individual's saving is invested by Pension Fund Regulatory and development Authority(PFRDA) in diversified portfolios comprising of government bonds, bills, corporate debentures and shares.
Investment is allowed for persons between the age of 18 years and 65 years.There are two types of accounts, In Tier-I account, before attaining 60 years of ages,only 20 per cent of the contributions can be withdrawn and 80 per cent is relinquished in the annuity from a life Insurer. After attaining the age of 60 years, close to 60% contribution can be withdrawn and rest 40 per cent is relinquished in the annuity. In the Tier-II account, a person can withdraw without any limit.
2) Atal Pension Scheme-
For the people in the unorganized sector, the government announced a scheme called Atal Pension Scheme. It is administered by PFRDA and gives a guaranteed minimum monthly pesnsion to the subscriber, ranging between Rs. 1000 and Rs. 5000 per month. The Gol co-contributes 50% of the subscriber's contribution or Rs. 1000 per annum, whichever is lower for those not covered by social security schemes and who are not income taxpayers. It is applicable to citizens aged between 18 and 40 years. The exit is allowed at the age of 60 years and exit before 60 years of age is allowed only in the event of the death of the beneficiary or in case of a terminal disease.
3) Swavalamban Pension Yojana-
A new pesion system administered by PFRDA, It is applicable to citizens who are a part of the unorganised sector. In order to avail the benefits pertaining to the scheme, the individual shall not be employed by the central or state government or any public sector undertaking of the central or state government. Moreover, the employee must not be covered by any of the social security.schemes. The minimum contribution allowed is Rs. 1000 per annum and the maximum contribution can be Rs.12000 per annum.
4) Post Office Monthly Income Schemes-
The schemes offers and interest rate of 7.3 per cent per annum, payable monthly. The Interest is paid on a monthly basis from from the date of deposit. The maximum investment limit Rs.4.5 lakh in a single account and Rs. 9 lakh in a joint account. The maturity period is five years and the account can be transferred from one post office to another.
5) Pradhan Mantri Vaya Vandana Yojana-
It is specifically for senior citizens and offers a guranteed interest rate of 8 per cent. The investment limit has been increased to Rs. 15 lakh from Rs .7.5 lakh by the finance minister and the last date to apply for PMVVY has been extended to 31 th March 2020. The minimum age is required to be 60 years and the pension is payable at the end of each year. The frequency of payment is monthly, quarterly/ half yearly / yearly, chosen by the pensioner at the time of purchase.
6) Systematic withdrawal Plans of Mutual Funds-
Mutual funds allow investors an avenue of regular income through systematic withdrawal plans. In SWP, a fixed amount is withdrawn at fixed intervals. The option to invest in debt or equity funds lies with the investor. SWP is a revenue concept of SIP. It is a strategically designed plan to withdraw a fixed number of mutual funds unit and sell it in the market in order to generate monthly income.
7) Monthly Income term insurance-
Insurance providers have come up with new term plan policies which in addition to the sum assured gives monthly income to the family member. This plan provides a fixed tenure monthly icome for 10 years to 20 years in addition to one-time assured sum. Some plans even provide monthly payout benefit in case when the insured is diagnosed with a critical illness.
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