The interest rates of small savings schemes are a topic of interest for investors looking for safe and reliable options. The government periodically reviews and adjusts the rates of these schemes. Here is a look at the current rates for some of the most common small savings programs:
Public Provident Fund (PPF): Interest rate 7.1 per cent
The PPF is a long-term investment option backed by the government, requiring a minimum annual deposit of Rs 500 and a maximum of Rs 1.5 lakh. It offers tax benefits under Section 80C of the Income Tax Act.
Senior Citizen Savings Scheme (SCSS): Interest rate 8.2 per cent
Designed for senior citizens, this scheme allows a minimum deposit of Rs 1,000 and a maximum of Rs 30 lakh across all accounts. The SCSS is accessible to individuals aged 60 or older. Additionally, those who have taken voluntary retirement after the age of 55 can also avail themselves of this scheme, provided they invest within one month of receiving their retirement benefits.
Sukanya Samriddhi Account Scheme: Interest rate 8.2 per cent per annum
Sukanya Samriddhi Yojana (scheme) (SSY) is a government small saving scheme encouraging parents to invest for the girl child. Launched to support the government’s Beti Bachao Beti Padhao initiative, SSY offers attractive tax benefits and incentives to help secure the girl child’s finances. This scheme can be opened before she turns 10. The minimum deposit is Rs 250, while the maximum is Rs 1.5 lakh per year.
Kisan Vikas Patra (KVP): Interest rate 7.5 per cent per annum
Kisan Vikas Patra (KVP) is a certificate scheme launched by the Indian government in 1988. It doubles a one-time investment in a period of 115 months. If you deposit Rs 5,000, you will get Rs 10,000 post maturity. The minimum investment amount is Rs 1,000 and there is no upper limit. If you invest a lump sum amount today, you can get double the amount at the end of the 115th month. The scheme was launched to enable farmers to save for the long term but now it is available for all. KVP certificates can be purchased from select public sector banks and post offices.
National Savings Certificate (NSC): Interest rate 7.7 per cent per annum
The National Savings Certificate (NSC) is a fixed-income investment scheme that you can open with any post office branch. This is an initiative by the Government of India and encourages subscribers – mainly small to mid-income investors – to invest while saving and also saving on income tax. The NSC requires a minimum investment of Rs 1,000, with no upper limit. The interest is payable at maturity, which is typically five years.
Post Office Monthly Income Scheme (POMIS): Interest rate 7.4 per cent per annum
The Post Office Monthly Income Scheme (POMIS) is a government-backed small savings scheme that allows the investor(s) to set aside (save) a specific amount every month. Subsequently, interest is added to this investment at the applicable rate and paid out to the depositor(s) every month. The POMIS requires a minimum deposit of Rs 1,000, and the maximum limit is Rs 9 lakh for a single account and Rs 15 lakh for joint accounts.
Mahila Samman Savings Certificate: Interest rate 7.5 per cent per annum
The Mahila Samman Savings Certificate is a one-time savings scheme for women announced by the government in budget 2023. The scheme is valid from April 2023 to March 2025 and aims to empower women by increasing their participation in investments. It offers a maximum deposit facility of up to Rs 2,00,000 in the name of women or girls for two years at a fixed interest rate.
Post Office Recurring Deposit Account: Interest rate 6.7 per cent per annum
The five-year Post Office Recurring Deposit scheme, also known as National Savings Recurring Deposit, allows you to save on a regular monthly basis for five years, meaning 60 monthly installments. These deposits earn interest as per the applicable rate compounded every quarter.
First Published: Aug 20 2024 | 1:46 PM IST
