Sat. May 25th, 2024
Fixed Deposit and Public Provident Fund

While India continues its unhindered stride towards economic success, it is also going through a drastic change in the saving habits of its populace. As per CEIC data, India’s Gross Savings Rate was measured at 30.5% for the year 2019. Considering the escalating daily expenditure coupled with the increased price of livelihood, savings are a crucial consideration that individuals need to make. The saved amount can later be used to finance a child’s higher studies, medical emergencies, paying for mortgage, for other necessary expenditures.

Thus, multiple initiatives have been launched, including policies like Sukanya Samriddhi scheme, as well as Public Provident Fund, Fixed Deposit, etc. Such schemes are aimed to ensure financial stability and take care of any necessities that might arise in the future. Each of the projects comes with different tax exemption policies, lucrative rate of interest, etc. Here is an in-depth insight into each of the aforementioned schemes –

  • Sukanya Samriddhi Yojana 

Despite a considerable boost in India’s female literacy rate, there remains a significant difference between the male and the female literacy. In an attempt to meet this gender disparity in terms of education, multiple government endeavours have been launched. The Government of India launched ‘Beti Bachao Beti Padhao’. It is offered to provide girl child with the provision of gaining financial independence and education. The Sukanya Samriddhi scheme backs this initiative and is characterised by –


  • The interest rate on this scheme is fixed by the government and revised quarterly. From July to September 2019 it is 8.4%. 
  • Can be opened only in the name of a girl child by either the legal guardians or parents.
  • The age of the girl applicant needs to be below 10.
  • Multiple accounts cannot be opened for a single applicant.


  • A fixed, competitive rate of return.
  • Provides tax benefits under the Income Tax Act Section 80C for up to Rs. 1.5 Lakh annually.
  • It is a long-term investment and hence offers the advantage of compounding.
  • A minimum deposit of Rs. 250 a year is needed to enrol in this scheme. 
  • Public Provident Fund

A Provident Fund or PF account is an investment scheme that helps individuals build a substantial corpus and comes with the add-on benefit of tax exemption. It makes it one of the best ways to invest after retiring or while an individual is employed. Considering that this scheme is a fixed income investment, the benefits of it are numerous. This account is characterised by –


  • Minimum documentation that includes address proof, ID proof, nomination form, photograph, PPF account opening form or Form A.
  • Parents can open accounts for their minor children.
  • The interest rate for Q2 FY 2019-29 on PF accounts is 7.9%.


  • Requires a minimum deposit of Rs. 100 to start the account and deposit a maximum of Rs. 1.5 Lakh or a minimum of Rs. 500 once yearly.

  • Investment of up to Rs. 1.5 lakh is tax deductible, the interest earned is non-taxable, and the amount withdrawn post-retirement is also exempted from taxes.

Such savings scheme surely makes life easier in the golden years, i.e., post-retirement. The amount can be used to bring financial stability despite having no fixed sources of income after retirement. 

  1. Fixed Deposit

Fixed Deposits are considered as one of the most secure and guaranteed investments that yields higher returns and offers safety of the principal amount. Considered as the safest investment option, it enables the investors to take control of their investments.

Numerous financial institutions offer fixed deposit schemes to their customers. Taking into account the several borrower-friendly features offered, approaching reputed lenders like Bajaj Finance to avail Fixed Deposits can be a lucrative option. It ensures that account holders learn how to manage their money more effectively and gain the add-on benefits like – 

  • Attractive rate of interest for senior citizens.
  • Better security of the invested money. 
  • A flexible tenor ranging between 12 to 60 months. 

Now that you know all about the Sukanya Samriddhi scheme, Public Provident Fund and Fixed Deposit, make sure to avail a savings scheme that best suits your financial requirements. Also, remember to opt for one that comes with the least risk considering that the amount can be later used to fund your necessities.

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