Small Savings Schemes: The central government has updated the interest rates for several popular small savings schemes.
These savings schemes include the Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), Senior Citizen Savings Scheme (SCSS) and Kisan Vikas Patra (KVP).
These savings schemes are offered by post offices and select banks. These schemes are safe and stable investment options for small investors.
Let us tell you that in the last review in June 2024, the government did not change the interest rate for these schemes.
These schemes are still very attractive considering the non-market linked instrument and fixed returns.
Today we will tell you about the interest rates and benefits of these small savings schemes (SSS).
Public Provident Fund (PPF)
Public Provident Fund (PPF) is a long-term investment option through which small investors can invest their money in a government savings scheme. It offers fixed returns as well as tax benefits.
Interest on PPF
PPF offers 7.1 percent interest per annum.
Tax Benefits
PPF is placed in the EEE category, which means that the amount deposited in it is tax-free.
Apart from this, there is no tax on the money received in the scheme and most importantly, the maturity amount is also kept tax-free.
Under Section 80C of the Income Tax Act, a maximum exemption of ₹ 1.5 lakh can be availed in PPF in a financial year.
Money is deposited in PPF for 15 years. But if you want, you can extend the scheme for 5-5 years after maturity.
(NSC)
National Savings Certificate (NSC) is a great savings scheme in which fixed returns and tax benefits are available. This government scheme can be opened by visiting any post office branch.
Investors get annual interest at the rate of 7.7 percent on NSC investment. NSC account matures in 5 years. And any person can open an account with a minimum deposit of ₹ 1000. There is no any maximum deposit limit has in this scheme.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana is a government scheme aimed at securing the future of girls. Under this scheme, a minimum of ₹ 250 and a maximum of ₹ 1.5 lakh can be deposited in a year.
Sukanya Samriddhi Yojana pays 8.2 percent interest annually. This account remains valid till the age of 21 years from the date of opening the account. But money can be deposited in it only for 15 years.
Let us tell you that the guardians of girls below 10 years of age can open an account in this scheme in their name. Only one account is allowed for a girl child and each family is allowed to open a maximum of two accounts (for each girl child).
Senior Citizen Savings Scheme (SCSS)
Senior Citizen Savings Scheme (SCSS) is a government retirement scheme that can be availed by senior citizens. In this scheme, senior citizens can get regular income by depositing a fixed amount.
SCSS account can be opened in the post office or any other bank authorized by RBI. The main benefit of this scheme is permanent income after retirement. Income tax deduction is made under Section 80C of the Income Tax Act.
People who deposit money in the Senior Citizen Savings Scheme are given 8.2 percent interest per annum. The maximum investment limit in this scheme is ₹30 lakh.
Kisan Vikas Patra (KVP)
The Kisan Vikas Patra (KVP) scheme is a savings certificate scheme that is beneficial for small investors. This scheme offers guaranteed returns. The KVP certificate fully matures in 113 months.
The interest rate for the Kisan Vikas Patra (KVP) scheme in the July-September quarter is 7.5 percent per annum.