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Even today, most people rely on bank Fixed Deposits (FDs) to safeguard their hard-earned money. However, the truth is that the interest offered on FDs is no longer as attractive as it used to be. Consequently, many individuals, in pursuit of higher returns, end up investing their money in risky avenues. The good news is that there are government schemes available that not only offer higher returns than bank FDs but also ensure the 100% safety of your capital. Let's explore some of these excellent options:

Sukanya Samriddhi Yojana
This is one of the most popular government schemes dedicated to securing the future of daughters. Through this scheme, a substantial corpus can be built to fund a daughter's education or marriage. It currently offers an interest rate of 8.20%.

Senior Citizen Savings Scheme (SCSS)
This scheme has been designed specifically for senior citizens. It offers a higher interest rate than bank FDs, and the interest is paid out every quarter. Here too, the government is currently offering an annual interest rate of 8.20%.

RBI Floating Rate Savings Bonds (RBI FRSB)
If you prefer not to wait for a very long period, this is the ideal option for you. The interest rate on these bonds currently stands at 8.05%, subject to periodic revisions. You can easily purchase them via the 'RBI Retail' app. These bonds are just as secure as bank FDs, but offer slightly higher returns.

National Pension System (NPS)
This is an excellent government-backed retirement scheme. Under this scheme, your funds are invested in a mix of bonds and the stock market, potentially yielding returns of up to 8% over the long term. Upon reaching the age of 60, it serves as a reliable source of pension income. A key highlight of this scheme is that it also offers significant tax benefits.

National Savings Certificate (NSC)
If you are looking to invest for a tenure of five years, the National Savings Certificate makes for an excellent choice. It currently offers an interest rate of 7.70%. The best part is that you can get started with as little as ₹1,000 and also save on taxes under Section 80C of the Income Tax Act.

Public Provident Fund (PPF)
The Public Provident Fund is one of the most popular long-term savings schemes available. It currently offers an annual interest rate of approximately 7.10%. This scheme has a tenure of 15 years, and investments made in it are eligible for tax exemptions. Over the long term, the power of compounding can help build a substantial corpus.

Kisan Vikas Patra (KVP)
In the Kisan Vikas Patra scheme, the invested amount doubles in 115 months. This scheme, which effectively doubles your money, currently offers an interest rate of 7.5%.

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