10 Best Small Saving Schemes By Indian Government: To help people save money safely and earn decent returns, the Indian government provides several types of small savings plans. All income levels can benefit from these schemes, but those seeking stable and low-risk investment options will particularly benefit. They are very safe and dependable because the government supports them.

Among the well-known small savings plans are the National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), Senior Citizen Savings Scheme (SCSS), and Public Provident Fund (PPF). These plans are appropriate for a range of financial objectives, including retirement planning, child education, and regular income after retirement, because they each have unique features like lock-in periods, interest rates, and tax benefits.

One of their best features is that many of these schemes have fixed interest rates and provide tax savings under Section 80C of the Income Tax Act. They can be easily opened at post offices or designated banks across India. These government-backed savings programs provide a secure way to grow your money while making plans for a stable future, regardless of your age, student, parent, working professional or senior citizen.

Here we have listed the 10 best small savings schemes with the best interest rates and benefits you must know about.

1. Public Provident Fund (PPF) – 7.1% per annum

PPF is a government-backed long-term savings plan that is perfect for investments with little risk. It provides tax-free returns under Section 80C and has a 15-year lock-in period. It is appropriate for self-employed and salaried people who want to accumulate savings for retirement.

2. Sukanya Samriddhi Yojana (SSY) – 8.2% per annum

A savings plan called Sukanya Samriddhi Yojana (SSY) was created specifically for girls. Parents of a girl under ten years old can open it. It provides tax advantages and has a 21-year maturity period. It's the best way to secure a girl child's future education or marriage because of the high interest rate.

3. Senior Citizen Savings Scheme (SCSS) – 8.2% per annum

SCSS was created for people aged 60 years and older. It is one of the highest interest-earning plans for retirees and offers a consistent income. It has a five-year maturity period with a three-year extension option.

 

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4. National Savings Certificate (NSC) – 7.7% per annum

NSC is a five-year-old fixed-income investment. It is appropriate for conservative investors and provides guaranteed returns. Each year, the interest is compounded and reinvested. Section 80C allows for tax deductions on investments up to ₹1.5 lakh.

5. Kisan Vikas Patra (KVP) – 7.5% per annum

In roughly 115 months (9 years and 7 months), the Kisan Vikas Patra scheme will double your investment. It is best for people seeking risk-free, long-term investments. It is accessible at post offices and has no upper limit on investment.

6. Post Office Monthly Income Scheme (POMIS) – 7.4% per annum

POMIS offers a steady monthly income and is ideal for retirees or individuals seeking fixed monthly returns. It has a maturity period of 5 years, and interest is paid monthly. The maximum investment limit is ₹9 lakh for a single account and ₹15 lakh for a joint account.

7. Post Office Savings Account – 4% per annum

Similar to a regular savings account, this scheme offers better interest than many bank savings accounts. It is easy to open and maintain, with a minimum balance requirement of ₹500. It provides liquidity along with nominal interest.

8. National Pension Scheme (NPS) – 9% per annum (varies)

NPS is a voluntary retirement savings scheme that offers market-linked returns. Subscribers can invest regularly in a pension account during their working life. At retirement, they can withdraw a part of the corpus and use the rest to buy a monthly pension. It offers tax benefits under Sections 80C and 80CCD(1B).

 

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9. Mahila Samman Savings Certificate, 2023 (MSSC) – 7.5% per annum

Launched exclusively for women and girls, MSSC offers secure and high-interest returns with a maturity of 2 years. The maximum investment allowed is ₹2 lakh. It is a short-term investment option that empowers women financially.

10. Three-Year Term Deposit Scheme – 7.1% per annum

This is a fixed deposit option available at post offices with a lock-in period of 3 years. It offers assured returns and is suitable for short- to medium-term goals. The interest is compounded quarterly and taxable.