The government, banks, and financial institutions provide various savings schemes to help people save money monthly or annually.
These schemes cater to both small and large deposits and offer different interest rates. Before choosing a scheme, it is important to check its interest rate.
Popular Post Office Savings Schemes
There are several small savings schemes designed for different groups of people, such as:
Sukanya Samriddhi Yojana (SSY): For parents of girl children
Mahila Samman: For women investors
Senior Citizen Savings Scheme (SCSS): For senior citizens
Public Provident Fund (PPF): For long-term savings
Kisan Vikas Patra (KVP)
National Savings Certificate (NSC)
Short-term options like Time Deposit and Recurring Deposit
The government reviews the interest rates for these schemes every three months.
For the third quarter of the 2024-25 financial year (October 1 to December 31, 2024), the interest rates remain unchanged from the previous quarter.
Interest Rates for October-December 2024
Here are the current interest rates for some popular small savings schemes:
Senior Citizen Savings Scheme (SCSS): 8.2% annually
5-Year Post Office Time Deposit: 7.5% annually
National Savings Certificate (NSC): 7.7% annually (compounded)
Kisan Vikas Patra (KVP): 7.5% annually (compounded)
Sukanya Samriddhi Yojana (SSY): 8.2% annually
These rates offer attractive returns, making them suitable for various types of investors, including senior citizens and parents of girl children.
Scheme Details
Senior Citizen Savings Scheme (SCSS)
SCSS is tailored for senior citizens and retired individuals. You can open an account with a minimum deposit of Rs 1,000,
and the maximum deposit limit is Rs 30 lakh. This scheme offers an 8.2% annual interest rate for the October-December 2024 quarter.
5-Year Post Office Time Deposit
This scheme allows you to save for five years while enjoying tax benefits under Section 80C of the Income Tax Act.
You can start with a minimum deposit of Rs 1,000. The interest rate for this scheme is 7.5% annually for this quarter.
National Savings Certificate (NSC)
NSC is a safe investment option that provides fixed returns and tax benefits under Section 80C.
The investment matures after five years, with an annual interest rate of 7.7%, compounded annually.
Kisan Vikas Patra (KVP)
KVP is a low-risk savings scheme where your invested amount doubles in 115 months (9 years and 7 months). For this quarter, the scheme offers 7.5% annual interest, compounded annually.
Sukanya Samriddhi Yojana (SSY)
This scheme is designed for parents of girl children. The amount invested is tax-deductible under Section 80C, and the interest earned is tax-free.
Parents can manage the account until the girl turns 18. The interest rate for this quarter is 8.2% annually.
