Stock market volatile! These top 6 small savings schemes will help you make money

Gilead Sciences' remdesivir drug has brought some positive movement in the stock market but the US President Donald Trump's fresh attack on China over trade standoff has put global indices under pressure once again. 

ZeeBiz WebTeam | May 05, 2020, 12:34 PM IST

Gilead Sciences' remdesivir drug has brought some positive movement in the stock market but the US President Donald Trump's fresh attack on China over trade standoff has put global indices under pressure once again. So, for those investors who are not in mood to take further risk or those who have lower risk appetite and want to invest in assured return guaranteed options, small saving schemes have emerged as a top priority. However, there are various small savings schemes like Public Provident Fund or PPF, Sukanya Yojana, VPF and more. Among them are Post office schemes that offer lucrative returns. So, we list out here six small savings schemes that can help you make money even when your investments in stock markets are in trouble. Photo: PTI

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GOLD

GOLD


From the ancient times, gold has remained a haven for investors when the economy is under pressure. We saw it happening during 2008 economic crisis and now after 12 years, we are witnessing the same in 2020 COVID-19 crisis. So, at a time when stock market is highly volatile, it would be interesting to know that from Akshaya Tritiya 2019 to Akshaya Tritiya 2020, gold prices shot up to the tune of 47 per cent. However, it's not wise investing in physical gold as it involves depreciation cost of around 4-5 per cent at the time of gold sale. So, to get more returns, ope should buy electronic gold, which means Gold ETF or Gold bonds. Photo: Reuters

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PPF or Public Provident Fund

PPF or Public Provident Fund

PPF scheme was launched in 1968 by the central government. The main objective of PPF scheme is to help individuals make small savings and make big long-term investment fund. In this small savings scheme, PPF interest rate for April to June 2020 quarter announced by the center is 7.1. Photo: PTI

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Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana

If you have a daughter aged below 10 years, then you can go for the Sukanya Samriddhi Yojana scheme launched by the central government in 2015. In this scheme, one can open Sukanya Yojana Account in any of the banks. Currently, it is giving 7.6 per cent returns. Using Rule 72 calculator, if someone opens Sukanya Samriddhi Yojana account in April to June quarter, his or her money will get doubled in 9.46 years. Photo: Pixabay

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Voluntary Provident Fund or VPF

Voluntary Provident Fund or VPF

If someone is looking for tax-saving investment option, then opting for VPF is one of the best options available to him or her. In this option, one needs to inform one's recruiter that he or she wants to add more in the monthly EPF contribution. The recruiter would happily agree as they need to go for EPF contribution beyond 12 per cent of the basic salary of the employee. By choosing VPF, one will be able to get 8.5 per cent assured returns on one's VPF contribution, which is highest among all tax-saving small saving schemes. Photo: PTI

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Post Office Recurring Deposit (RD)

Post Office Recurring Deposit (RD)

Post Office RD or Post Office Recurring Deposit Scheme is a short-term saving scheme that gives better return to an investor. Currently, post office RD rate of interest is 7.2 per cent. Post Office Account RD helps a small investor by allowing them to invest as little as Rs 10 per month and any amount in multiples of Rs 5. Post office RD is basically a monthly investment for a fixed period of 5 years with a interest rate as mentioned above of 7.2 per cent per annum (compounded quarterly). On completion of the fixed tenure of five years, RD account with Rs 1000 invested every month will fetch you Rs 72,505. Photo: PTI

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Post Office Savings account

Post Office Savings account

If someone want more returns than bank savings account then post office savings account is there for them. This post office savings account gives 4 per cent returns which is 1 per cent higher than bank savings account. It is more suitable for senior citizens who have lowest risk appetite or may say zero risk appetite. Photo: Reuters