Business: Interest rates of small savings schemes are an interesting topic for investors looking for safe and reliable options. The government reviews and adjusts the rates of these schemes from time to time. Here is a look at the current rates of some of the most common small savings schemes: Public Provident Fund (PPF): Interest rate 7.1 percent PPF is a government-backed long-term investment option that requires an annual deposit of a minimum of Rs 500 and a maximum of Rs 1.5 lakh. It offers tax benefits under Section 80C of the Income Tax Act.
Senior Citizen Savings Scheme (SCSS): Interest rate 8.2 percent
Designed for senior citizens, this scheme allows a minimum deposit of Rs 1,000 and a maximum of Rs 30 lakh across all accounts. SCSS is accessible to individuals aged 60 years and above. Additionally, those who have taken voluntary retirement after the age of 55 can also avail the scheme, provided they invest within a month of receiving their retirement benefits.
Sukanya Samriddhi Account Scheme: Interest Rate 8.2 per cent per annum
Sukanya Samriddhi Yojana (SSY) is a government small savings scheme that encourages parents to invest for girl children. Launched to support the government’s Beti Bachao Beti Padhao initiative, SSY offers attractive tax benefits and incentives to help secure the girl child’s finances. The scheme can be opened before she turns 10. The minimum deposit amount is Rs 250, while the maximum is Rs 1.5 lakh per annum.
Kisan Vikas Patra (KVP): Interest Rate 7.5 per cent per annum
Kisan Vikas Patra (KVP) is a certificate scheme launched by the Government of India in 1988. It doubles the lump sum investment over a period of 115 months. If you deposit Rs 5,000, you will get Rs 10,000 after maturity. The minimum investment amount is Rs 1,000 and there is no upper limit. If you invest a lump sum today, you can get double the amount at the end of the 115th month. The scheme was launched to enable farmers to save for the long term, but is now available to all. KVP certificates can be purchased from select public sector banks and post offices.
National Savings Certificate (NSC): Interest rate 7.7 per cent per annum
The National Savings Certificate (NSC) is a fixed-income investment scheme that you can open at any post office branch. It is an initiative of the Government of India and encourages customers – mainly small to medium-income investors – to invest while saving and also save on income tax. NSC requires a minimum investment of Rs 1,000, with no upper limit. Interest is payable on maturity, which is usually five years.
Post Office Monthly Income Scheme (POMIS): Interest rate 7.4 per cent per annum
The Post Office Monthly Income Scheme (POMIS) is a government-backed small savings scheme that allows investor(s) to set aside (save) a fixed amount every month. Thereafter, interest is added on this investment at the applicable rate and paid to the depositor(s) every month. The minimum deposit amount for POMIS is Rs 1,000 and the maximum limit is Rs 9 lakh for a single account and Rs 15 lakh for joint accounts.
Mahila Samman Savings Certificate: Interest rate 7.5 per cent per annum
Mahila Samman Savings Certificate is a one-time savings scheme for women announced by the government in Budget 2023. The scheme is valid from April 2023 to March 2025 and aims to empower women by increasing their participation in investing. It offers a maximum deposit facility of up to Rs 2,00,000 at a fixed interest rate for two years in the name of women or girls.
Post Office Recurring Deposit Account: Interest Rate 6.7 per cent per annum
The five-year Post Office Recurring Deposit Scheme, also known as National Savings Recurring Deposit, allows you to save on a regular monthly basis for five years, which means 60 monthly installments. These deposits earn interest as per the applicable rate every quarter.
