New Delhi: Small Savings Schemes are one of the most go to investment avenues for long term investors in India. Along with safety of capital, investors also get inflation beating interest rates. The government of India revises small savings schemes interest rates periodically. Moreover, citizens also get Rs 1.50 lakh deduction benefits under Section 80C of the Income Tax Act, 1961, on investments made in some of the savings schemes. Let’s see which are the top 10 small savings schemes in India.
Public Provident Fund (PPF)
Public Provident Fund (PPF) is one of the most preferred long-term investment scheme in India. Citizens can open a PPF account at a bank branch or post office both online and offline. Both self employed and salaried individuals can open PPF account.
Currently, PPF interest rate is 7.1 per cent. While, PPF lock-in period is of 15 years. Whereas, PPF Minimum investment is Rs 500 per year, and the maximum investment amount is Rs 1.50 lakh in a financial year.
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana (SSY) is one of the most popular investment avenues for girl child. The minimum amount of investment amount is Rs 250 and the maximum limit is Rs 1.50 lakh per annum. The SSY interest rate for 2024 is 8.2 per cent. The lock-in period is of 21 years. The government has fixed the maximum age at 10 years.
National Savings Certificate
Anyone can invest in National Savings Certificate (NSC). Parents on behalf of their children can also invest in this small savings scheme. NSC minimum investment amount is Rs 1,000 in a single financial year. As there is no maximum limit, an individual can invest any amount in this savings scheme. NSC interest rate currently stands at 7.7 per cent.
Senior Citizens Savings Scheme
Anybody of the age of 60 years and above can opt for Senior Citizens Savings Scheme (SCSS) investment. Senior citizens can open SCSS at any bank branch or post office branch. Some banks also allow you to go for SCSS online account opening process.
Kisan Vikas Patra
Any body above 18 yeas of old can invest in Kisan Vikas Patra (KVP). One can also invest in this savings scheme on behalf of their childrens’ name. One can go for KVP investment in denominations of Rs 1,000, Rs 5000, Rs 10,000, and also Rs 50,000. Citizens can open KVP online and offline in any bank or India Post.
Post Office Monthly Income Scheme (POMIS)
Citizens can also invest in Post Office Monthly Income Scheme. For this, they will have to open an account at any of the branches of Post Offices across the country. POMIS interest payout is done on monthly basis. Investors do not get any Income Tax deduction under Section 80C on POMIS investments.
Post Office Time Deposit (POTD)
Post Office Time Deposit scheme is just like any other bank fixed deposit. The minimum age limit is 10 years. Deposits are opened for flexible tenures which range from 1 year to 5 years. Interest rates vary according to the tenure of the deposit. Currently, interest rates vary from 5.5 per cent to 6.7 per cent.
Post Office Savings Account
Anybody can open Post Office Savings account. One can opt for Post Office Savings account opening online process on India Post website. One can also pay a visit to any of the branches of India Post to open the account.
Atal Pension Yojana
As the name indicates, Atal Pension Yojana (APY) is a pension scheme for anybody from the age of 18 years and 40 years. On monthly contribution of small small amounts, one can get up to Rs 5,000 pension after attainment of 60 years of age.
Pradhan Mantri Vaya Vandana Yojana
Only senior citizens can invest in Pradhan Mantri Vaya Vandana Yojana. This is a pension scheme. The elderly can open PMVVY account with LIC. Investment will be made in lump sum. Pension payout can be flexible after the successful completion of 10 years of time period.
Top 10 Small Savings Schemes in India
Small Savings Scheme
Interest Rate (%)
Min Investment (Yearly) (In Rs)
Max Investment (Yearly) (In Rs)
Lock In Period (Yrs)
PPF
7.1
500
1.50 Lakh
15
SSY
8.2
250
1.50 Lakh
21
NSC
7.7
1000
NA
5
POMIS
7.4
1000
9 lakh
5
SCSS
8.2
1000
30 Lakh
5
KVP
7.5
1000
NA
2.6
APY
NA
42 (monthly)
NA
20
PMVVY
7.4
1.56 Lakh
15 Lakh
10
Post Office Savings Account
4
500
NA
NA
Post Office Time Deposit
5.5-6.7
1000
NA
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Top 10 Small Savings Scheme: Public Provident Fund (PPF), Sukanya Samriddhi Yojana, National Savings Certificate, Senior Citizens Savings Scheme, Kisan Vikas Patra, Post Office Monthly Income Scheme (POMIS), Post Office Time Deposit (POTD), Post Office Savings Account, Atal Pension Yojana, Pradhan Mantri Vaya Vandana Yojana. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
