The interest rates of government small savings schemes have changed since the start of the new year. Currently, how much interest will you earn on the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and Senior Citizens Savings Scheme (SCSS)? Through this article, we will share the latest rates.
Senior Citizen Savings Scheme (SCSS)
A popular investment option for seniors is the Senior Citizen Savings Scheme (SCSS). The government is currently offering an interest rate of 8.2% on deposits made between January and March. Those aged 60 and above can invest up to Rs 30 lakh in an SCSS account. The minimum deposit is Rs 1,000, and a lump sum deposit is also allowed.
The tenure of SCSS is five years, with a three-year extension available after maturity. The scheme allows early withdrawal after one year, but it comes with a penalty. However, there is a 1.5% discount on the penalty for early withdrawal.
Public Provident Fund (PPF)
The Public Provident Fund (PPF) is another government-backed long-term investment option. PPF helps grow wealth by offering a competitive interest rate over time, with compound interest that yields high returns.
One of the main advantages of the PPF scheme is that the interest and returns are tax-free as per the Income Tax Act, making it an ideal choice for those planning for a secure future. The minimum tenure for a PPF account is 15 years, with an option to extend it for another 5 years. A maximum of Rs 1.5 lakh can be invested in a PPF account each financial year, with a minimum contribution of Rs 500. Contributions can be made either monthly or annually.
The minimum amount to open a PPF account is Rs 100 per month. Interest and tax benefits are only available for investments up to Rs 1.5 lakh per year. Note that joint accounts are not allowed; a PPF account must be in the name of a single person. The current annual compound interest rate offered by the government is 7.1%.
Sukanya Samriddhi Yojana (SSY)
Launched in 2015 under the Beti Bachao, Beti Padhao initiative, the Sukanya Samriddhi Yojana (SSY) enables parents to open a savings account for their daughter at approved India Post or commercial banks. SSY accounts offer an interest rate of 8.2%. Previously, a minimum deposit of Rs 1,000 was required to open an SSY account, but this has now been reduced to Rs 250.
Disclaimer:
The information provided in this article is for informational purposes only and should not be considered as financial advice. Please consult a certified financial advisor before making any investment decisions. The author and website are not responsible for any financial outcomes resulting from the use of this information.