If you’re looking to save for the future, Fixed Deposits (FDs) are still a popular choice.
But with interest rates between 3% to 7% per annum in most government banks, many are now exploring Small Savings Schemes as safer and better-return alternatives.
These government-backed schemes are low-risk and give attractive interest.
However, their interest rates are revised every three months. Here are 5 top savings schemes offering higher returns than FDs:
1. Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a long-term savings plan available at banks and post offices.
Minimum investment: ₹500 per year
Maximum investment: ₹1.5 lakh per year
Current interest rate: 7.1% per annum
Lock-in period: 15 years (can be extended in blocks of 5 years)
Anyone can open it, including for a minor or mentally ill person
PPF offers tax benefits under Section 80C and is ideal for long-term, risk-free savings.
2. Post Office Monthly Income Scheme (MIS)
This scheme offers monthly income, making it great for regular earners like retirees.
Minimum investment: ₹1,000
Maximum: ₹4.5 lakh (single), ₹9 lakh (joint)
Maturity: 5 years
Current interest rate: 7.4% per annum
Interest paid monthly
MIS is available at post offices and is a reliable way to receive steady income.
3. Sukanya Samriddhi Yojana (SSY)
A girl child-focused scheme, SSY is one of the highest-interest savings plans.
Who can open: Parents of a girl below 10 years
Minimum deposit: ₹250 per year
Maximum deposit: ₹1.5 lakh per year
Current interest rate: 8.2% per annum
Investment period: Up to 15 years; account matures when girl turns 21
Partial withdrawal allowed at age 18 for education or marriage
Only resident Indians can open this account, and adoptive parents are also eligible.
4. Senior Citizen Savings Scheme (SCSS)
A special scheme for senior citizens, SCSS gives guaranteed returns with tax benefits.
Who can invest: People aged 60+
Early investors (55+) can join within 1 month of retirement
Minimum investment: ₹1,000
Maximum: ₹30 lakh
Maturity: 5 years
Current interest rate: 8.2% per annum
This scheme is available at post offices and select banks, offering quarterly interest payouts.
5. National Savings Certificate (NSC)
The NSC is a low-risk investment available at post offices and is ideal for medium-term goals.
Minimum investment: ₹1,000
No maximum limit
Maturity: 5 years
Current interest rate: 7.7% per annum
Option to invest singly, jointly, or for a minor
NSC is also eligible for tax deduction under Section 80C, and interest is reinvested annually.
Summary Table
| Scheme | Interest Rate | Lock-in/Term | Min-Max Investment |
|---|---|---|---|
| PPF | 7.1% | 15 years | ₹500 – ₹1.5 lakh/year |
| MIS | 7.4% | 5 years | ₹1,000 – ₹9 lakh |
| SSY | 8.2% | Till girl turns 21 | ₹250 – ₹1.5 lakh/year |
| SCSS | 8.2% | 5 years | ₹1,000 – ₹30 lakh |
| NSC | 7.7% | 5 years | ₹1,000 – No upper limit |
These schemes are secure, offer better returns than FDs, and are supported by the government.
Choose one based on your age, goals, and risk preference to build a solid financial future.
