To promote savings among citizens, the government offers various small savings schemes that provide guaranteed returns with minimal risk. These schemes are revised quarterly to adjust their interest rates based on market conditions.
Recurring Deposit Scheme
The Recurring Deposit Scheme is designed for small investors who can start with as little as Rs 100.
It offers an annual interest rate of 6.7%, making it accessible for those looking to save regularly even with modest amounts.
Time Deposit Scheme
Ideal for investors looking to save for short to medium terms, the Time Deposit Scheme offers varying interest rates:
1) 6.9% for 1 year,
2) 7.0% for 2 years,
3) 7.1% for 3 years,
4) 7.5% for 5 years. This scheme also provides tax benefits under Section 80C of the Income Tax Act and requires a minimum investment of Rs 1000.
Public Provident Fund (PPF)
The PPF is a popular long-term savings scheme where investors can deposit between Rs 500 to Rs 1.5 lakh annually. It currently offers an annual interest rate of 7.1% and provides tax benefits.
Senior Citizen Saving Scheme (SCSS)
Specifically designed for senior citizens, SCSS offers a high interest rate of 8.2% per annum. Investors can deposit between Rs 1,000 to Rs 30 lakh, with tax implications if the interest exceeds Rs 50,000 annually.
Post Office Monthly Income Scheme (POMIS)
POMIS allows investors to deposit fixed amounts monthly and offers an interest rate of 7.4% per annum.
It requires a minimum investment of Rs 1000 and permits up to Rs 9 lakh for single accounts and Rs 15 lakh for joint accounts.
National Savings Certificate (NSC)
NSC is a five-year investment scheme offering an annual interest rate of 7.7%. It provides tax deduction benefits and requires a minimum investment of Rs 1,000, with no maximum limit.
Kisan Vikas Patra (KVP)
Investments in KVP double in approximately 9 years and 7 months, currently earning an interest rate of 7.5% per annum.
Other Schemes
Mahila Samman Savings Certificate: Specifically for women, offering an interest rate of 7.5% per annum.
Sukanya Samriddhi Yojana (SSY): Aimed at securing the future of daughters with an interest rate of 8.2% per annum, requiring a minimum annual deposit of Rs 250 and a maximum of Rs 1.5 lakh.
These schemes cater to a wide range of investors, providing secure avenues for savings with attractive returns and tax benefits.
