Investment options for low income earners in india

There are several schemes in place by the government for the various strata of the society to reap benefits from. These schemes were introduced in order to provide financial support in the form of bank accounts, financial security for education, loans, and for emergencies like death.

This is a life insurance scheme provided and supported by the Government of India.

This scheme can be taken up by any individual between 18 to 50 years of age. It can be subscribed to at a minimum annual premium cost of Rs , with a death benefit of Rs 2 lakh to the nominee. The Pradhan Mantri Suraksha Bima Yojana, on the other hand, will offer a renewable one-year accidental death-cum-disability cover of Rs 2 lakh at Rs 12 as an annual premium. The insured will get Rs 1 lakh in the case of partial permanent disability.

6 investment options for the retired

It was launched on January 22, By investing in this scheme, you will be eligible to annualised returns of 9. The rate of returns has been since increased to 9. The interest rate offered under the scheme is subject to revision and will be compounded every year.

This scheme is intended to provide pension benefits like social security, with a minimum contribution per month. Those who work in the private sector can opt for a fixed pension of Rs 1, to 5, that will start once they are 60 years old.

Upon the death of the contributor, the spouse or the nominee can claim the pension money and the accumulated corpus. But this scheme is only for those who come under the low-income group or are not a part of the tax bracket. The scheme has been put into place to help people in the low strata of the society, like security guards, drivers or the house help.

Did you know that you can get tax benefits by investing in Mutual funds?

Tax benefit under section 80C is allowed for an investment in specically-designed Mutual Funds schemes called ELSS Equity-linked savings scheme. Under this, you can save up to Rs 1. The scheme also offers an overdraft facility of Rs along with a RuPay Debit card with in-built accident insurance cover of Rs 1 lakh and a RuPay Kisan Card.

The best part of this scheme is that it also offers tax benefits under section 80CCD of Income-tax Act, within an overall limit of Rs 1.

In the last budget, an additional deduction up to Rs 50, is also allowed for the contribution made towards NPS. This made the total deduction under section 80CCD to Rs 2 lakh.

PPF is one of the best government-backed long term small savings scheme which was introduced to help people save for retirement specially for those who are self-employed. One can invest up to Rs 1. One can also open PPF accounts in the name of their spouse and children and the best part is the tax-free returns on the maturity, which makes it a great investment tool.

The Need for Retirement Income | Prudential Financial

Different government schemes offer different returns and caters to various strata of our society. So think wisely before investing in any of these schemes to optmise your returns as well as tax benefits.

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Top 10 Monthly Income Investment Options in India - Mymoneysage Blog

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