Saving Schemes: The government has not made any change in the interest rates for small savings schemes. This is the sixth consecutive quarter when the interest rates of many small savings schemes including PPF and NSC have been kept unchanged. This decision is for the July-September quarter.

According to the notification issued by the government, the interest rate on Public Provident Fund (PPF) has been retained at 7.1%. Apart from this, 7.7% interest will be available on investment in National Savings Certificate (NSC). At the same time, 8.2 percent interest rate will continue on Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY).

Kisan Vikas Patra Scheme

Kisan Vikas Patra is a certificate scheme of Indian Post Office. It doubles a one-time investment in about 9.5 years. The minimum amount to invest in it is Rs 1000 and there is no maximum investment limit. Its interest rate is 7.5%. It also provides tax benefits of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961.

Talking about eligibility, the applicant must be an Indian citizen and must be above 18 years of age. An adult can apply on behalf of a minor or an unwell person. Hindu Undivided Families (HUFs) and Non-Resident Indians (NRIs) are not eligible to invest in KVP.

Senior Citizen Savings Scheme (SCSS)

Senior citizens above the age of 60 can open SCSS accounts. Retired civilian employees between the ages of 55-60 years and retired defence personnel between the ages of 50-60 years can also open SCSS accounts if they have started investing within one month of receiving their retirement benefits.

A person is allowed to open multiple SCSS accounts. However, the combined total of all accounts should not exceed the maximum limit of Rs 30 lakh. The minimum limit for opening an account is Rs 1,000. SCSS accounts mature after 5 years but can be extended for another 3 years after maturity. Deposits up to Rs 1.5 lakh per year are eligible for deduction under Section 80C of the Income Tax Act, 1961.

Public Provident Fund (PPF)

PPF account is getting 7.1% interest which is compounded annually. Rs 1.5 lakh can be invested annually in this scheme which matures after 15 years. According to the Public Provident Fund Rules, 2019, a person can have only one PPF account. That is, only one PPF account can be opened on one PAN (Permanent Account Number).

In this, a minimum of Rs 500 to a maximum of Rs 1.5 lakh can be deposited in a year. In this, an annual investment of ₹1.5 lakh gives a maturity amount of ₹40.68 lakh after 15 years, on which tax is not levied.

National Savings Certificate (NSC)

National Savings Certificate is a post office scheme. In this scheme, investors get 7.7 percent interest. Its maturity period is 5 years. You can start investing in it with just Rs 1000. There is no limit for maximum investment. Investment in this gives tax benefit under section 80C of Income Tax. This benefit is only on investment up to Rs 1.5 lakh.

Sukanya Samriddhi Yojana

To open an account in this scheme, it is necessary that your daughter’s age should not be more than 10 years. Parents can open only one account in the name of one daughter and can do so for a maximum of two daughters. This scheme matures when the daughter turns 21 years old and if the money is not withdrawn at that time, the remaining amount will continue to receive interest fixed for the scheme from time to time.

The current rate of interest in this is 8.2%. In a financial year, parents can deposit a minimum of Rs 1000 and a maximum of Rs 1.5 lakh in the name of their daughter. This also provides income tax exemption under section 80C.