Post Office Scheme – Post Office small savings schemes generally offer reliable and consistent long-term returns, making them the most popular among traditional and conservative investors. If you’re looking to invest in small savings schemes, it’s important to understand the different interest rates offered by each scheme to determine which offers the highest interest rate. Notably, PPF and NSC are not among the highest-yielding small savings schemes. Let us explain…

Which scheme gives the highest returns?

According to the latest interest rates released by the government, Sukanya Samriddhi Yojana offers the highest return of 8.2 percent among all small savings schemes. The government recently announced that the interest rates on several small savings schemes, including the Public Provident Fund (PPF), National Savings Certificate (NSC), and Sukanya Samriddhi Yojana, will remain unchanged for the third quarter of the financial year 2025-26. The Finance Ministry made this announcement on Tuesday, September 30, 2025.

Highlights of Sukanya Samriddhi Yojana

  1. The minimum annual deposit amount is Rs 250 and the maximum is Rs 1.5 lakh per financial year.
  2. These accounts can be opened in post offices and authorized public and private banks, such as State Bank of India (SBI), HDFC Bank, ICICI Bank, etc.
  3. The account holder is allowed to withdraw for higher education expenses.
  4. If the girl gets married after the age of 18, premature closure of the account is allowed.
  5. These accounts can be transferred between post offices and banks across India.
  6. The maturity period of this scheme is 21 years from the date of opening the account.

Does Sukanya Samriddhi offer tax benefits?

Sukanya Samriddhi Yojana falls under the tax-free category. Therefore, all deposits into this scheme are deductible under Section 80C of the Income Tax Act. Under Tax-Free Scheme, your investment, interest earned, and income on withdrawals are all tax-free. The parents or legal guardians of a girl child under the age of 10 can open an account on her behalf.