10 Small Savings Schemes That Will Help You Achieve Your Dreams!

Looking for the secret to financial freedom? Discover the top 10 small savings schemes you need to know today and start securing your future! To know more, read this article.

The Secret To Financial Freedom
  1. Different small savings schemes include Mahila Samman Savings Scheme, Kisan Vikas Patra, National Savings Certificate, and more.
  2. Most schemes offer tax benefits under Section 80C of up to Rs. 1.5 lakh.
  3. The minimum investment required for each scheme varies.

When it comes to saving money, many options are available, including small savings schemes. These schemes differ in terms of tenure, features, and tax advantages. However, one important aspect to consider is the minimum investment requirement. Knowing the minimum balance required to invest and maintain a scheme is essential. These schemes offer tax benefits under Section 80C of up to Rs. 1.5 lakh. This article will look closely at ten popular small savings schemes in India. The features and minimum requirements of ten small savings schemes are given below:

1. Mahila Samman Savings Scheme

The prominent features of the scheme are given below:

  • The account can be opened by a woman for herself or by the guardian on behalf of a minor girl.
  • The minimum deposit is ₹1,000 and in multiples of ₹100.
  • The maximum limit is ₹2 lakhs in an account or all accounts held by an account holder.
  • Mahila Samman Savings deposit is eligible for 7.5% interest per annum.

2. Kisan Vikas Patra

The prominent features of the scheme are given below:

  • Any number of accounts can be opened under the scheme.
  • The minimum investment is ₹1,000 and in multiples of ₹100.
  • There is no maximum limit on the investment amount.
  • The interest rate offered on this scheme for the quarter ending June 30 is 7.5% compounded annually.
  • The amount invested doubles in 115 months (9 years & 7 months).

3. National Savings Certificate

The prominent features of the scheme are given below:

  • Any number of accounts can be opened under the scheme.
  • Minimum investment of ₹1000 and in multiple of ₹100.
  • No maximum limit.
  • 7.7% compounded annually but payable at maturity.

4. Sukanya Samriddhi Yojana

The prominent features of the scheme are given below:

  • Account can only be opened for a maximum of two girls from a family
  • In the case of twins/triplets girls, more than two accounts can be opened
  • The interest rate of 8.0% per annum, calculated every year and yearly, compounded
  • Minimum investment of Rs. 250 and maximum of Rs. 1,50,000 in a financial year
  • Subsequent deposits in multiples of Rs. 50 should be made
  • Deposits can be made in lump-sum
  • No limit on the number of deposits either in a month or in a financial year

5. Public Provident Fund

The prominent features of the scheme are given below:

  • Only one Public Provident Fund Account can be opened nationwide, in either a Post Office or any Bank.
  • The minimum deposit required is Rs. 500 per financial year.
  • The interest rate is 7.1% per annum
  • The maximum deposit allowed in a financial year is Rs. 1.50 lakh.
  • Deposits can be made in a lump sum or instalments.

6. Senior Citizens Savings Scheme

The prominent features of the scheme are given below:

  • Senior citizens above the age of 60 can invest in SCSS
  • The annual interest rate is 8.2%
  • Interest is payable from the date of deposit of March 31/September 30/December 31 in the first instance, and after that
  • Interest thereafter will be payable on 31st March, 30th June, 30th Sept, and 31st December
  • The minimum deposit is Rs. 1000 and in multiples of Rs. 1000
  • The maximum deposit amount is Rs. 30 lakh

Also ReadGood news: Interest rates hiked on small saving schemes

7. National Savings Monthly Income Scheme

The prominent features of the scheme are given below:

  • Post Office Monthly Income Scheme Account (MIS) can be opened with a minimum of Rs. 1000 and in multiples of Rs. 1000
  • The maximum investment limit in a single account is INR 9 lakh
  • The maximum investment limit in a joint account is INR 15 lakh
  • The limit for an account opened on behalf of a minor as a guardian is separate.
  • The interest rate is 7.4% per annum, payable monthly.

8. National Savings Time Deposit Account:

The prominent features of the scheme are given below:

  • Post Office Time Deposit Accounts are available for 1, 2, 3, or 5 years.
  • The time deposits can be continued for an additional year after maturity.
  • The account can be opened with a minimum of Rs. 1000 and multiples of Rs. 100.
  • There is no maximum limit for investment.
  • Annual interest may be credited to the account holder's savings account by submitting an application.
  • Investment under 5-year TD qualifies for the benefit of section 80C of the Income Tax Act, 1961.
  • Interest rates for 1-year accounts, 2-year accounts, 3-year accounts, and 5-year accounts are 6.8% per annum, 6.9% per annum, 7.0% per annum and 7.5% per annum, respectively.

9. National Savings Recurring Deposit:

The prominent features of the scheme are given below:

  • Multiple accounts can be opened under 5-Year Post Office Recurring Deposit Account
  • The minimum amount for opening an account is Rs. 100 per month or any amount in multiples of INR 10/-
  • No maximum limit for balance retention
  • The interest rate for this quarter ending June 2023 is 6.2%

10.Post Office Savings Account

The prominent features of the scheme are given below:

  • Post office Savings Accounts can be opened by a single or two adults (Joint A or Joint B)
  • It can also be opened by a guardian on behalf of a minor or person of unsound mind
  • Minor above 10 years can open an account in their name
  • The interest rate offered is 4.0% per annum on individual/joint accounts
  • The minimum amount for opening an account is Rs. 500
  • The minimum balance that needs to be maintained is also Rs. 500

Also ReadReasons to invest you money in small savings schemes.

The article discusses ten small savings schemes available in India. Each scheme has different minimum investment requirements, features, and tax advantages and offers varying interest rates. Investors should consider these factors before choosing a scheme.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.

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