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For a long time, bank fixed deposits have been considered the safest option. However, in recent months, many banks have cut interest rates. Investors are now looking for government-backed options.

These days, most people want to invest a portion of their income in a place that keeps their money safe and offers better returns. For a long time, bank fixed deposits have been considered the safest option. However, in recent months, many banks have cut interest rates. Investors are now looking for government-backed options that offer higher returns than fixed deposits and are also safe. Today, we tell you about three such government schemes that are considered reliable options with better interest rates.

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is a long-term savings scheme specifically designed for daughters. It currently offers an annual interest rate of 8.2 percent, which is higher than normal fixed deposit rates. Under this scheme, an account is opened in the daughter's name. Parents can invest for 15 years, and the account remains active for 21 years. Investments can begin with a minimum of ₹250, while a maximum of ₹1.5 lakh can be deposited annually. The most significant feature of this scheme is that the deposit amount, interest earned, and maturity amount are all completely tax-free. This means no tax is payable on the returns. This is considered a strong option for major expenses like a daughter's education or marriage.

RBI Floating Rate Savings Bonds

RBI Floating Rate Savings Bonds are also a safe investment option, guaranteed by the government. The special feature of these bonds is that their interest rate resets every six months. It is set 0.35 percent higher than the International Savings Certificate rate. Currently, they offer an annual interest rate of around 8.05 percent, which is higher than many bank FDs. Their tenure is 7 years, and interest is credited directly to the investor's account every six months. Additionally, the minimum investment can be made from ₹1,000, and there is no maximum limit. However, the interest earned on this scheme is taxable according to the investor's tax slab.

Public Provident Fund

PPF is also a government scheme known for its safe and stable returns. It currently offers an annual interest rate of 7.1 percent. The maximum annual investment allowed is ₹1.5 lakh, with a tenure of 15 years. If a person deposits ₹1.5 lakh annually for 15 years, the total investment would be ₹22.5 lakh. At the current interest rate, this amount reaches approximately ₹42 to ₹43 lakh upon maturity. The special thing is that PPF returns are completely tax-free.