Government-backed savings schemes continue to be a favorite among investors looking for safety, steady returns, and tax benefits.
These low-risk options are ideal for long-term goals and regular income planning.
Here’s a quick guide to some of the most reliable schemes as 2026 approaches.
Public Provident Fund (PPF) – Long-Term Wealth Builder
The Public Provident Fund is perfect for retirement planning.
It offers tax-free returns and stable growth over a 15-year tenure, with the option to extend further.
Partial withdrawals are allowed after six years.
Interest Rate: 7.1% per year, compounded annually
Tax Benefits: Contributions eligible under Section 80C; interest earned is fully tax-free
Flexibility: Long-term growth with partial withdrawals and extension options
Sukanya Samriddhi Yojana (SSY) – Securing Your Daughter’s Future
The Sukanya Samriddhi Yojana is designed for girls under 10 years, helping parents save for education and marriage expenses.
The account matures after 21 years or upon marriage after age 18. Partial withdrawals for education are allowed once she turns 18.
Interest Rate: 8.2% per year, compounded annually
Purpose: Long-term savings for a girl child’s future
Senior Citizens Savings Scheme (SCSS) – Regular Income for Retirees
For individuals aged 60 years and above, the Senior Citizens Savings Scheme offers assured returns and government backing.
It provides a steady quarterly income, making it ideal for retirees seeking regular payouts.
Interest Rate: 8.2% per year, paid quarterly
Tenure: 5 years, extendable by 3 years
Withdrawal: Early withdrawals allowed with penalties
National Savings Certificate (NSC) – Tax-Saving Fixed Returns
The National Savings Certificate is a low-risk investment that ensures guaranteed returns and tax benefits under Section 80C.
It has a fixed maturity period of five years and is available at post offices nationwide.
Interest Rate: 7.7% per year, compounded annually
Tenure: 5 years
Tax Benefit: Investment qualifies for Section 80C deductions
Post Office Monthly Income Scheme (POMIS) – Steady Monthly Income
The Post Office Monthly Income Scheme is perfect for investors seeking regular monthly income with complete capital safety.
The tenure is five years, with government backing.
Interest Rate: 7.4% annually, paid monthly
Withdrawal: Premature withdrawal allowed after one year with penalty
Tax: Interest is taxable, no TDS below the prescribed limit
Kisan Vikas Patra (KVP) – Double Your Investment
The Kisan Vikas Patra is a low-risk, fixed-income scheme where the investment doubles in 112 months.
It is fully government-backed and allows transfers between post offices.
Early withdrawal is permitted after two and a half years under certain conditions.
Tenure: Investment doubles in 112 months
Flexibility: Transferable and early withdrawal allowed
These government savings schemes provide reliable growth, tax benefits, and low-risk investment options, making them ideal for investors planning for retirement, children’s future, or regular income in 2026.
