Many people in the country choose fixed deposits to earn good returns. The main reason is that there is no risk involved. But it is important to know that there are some small savings schemes too, which offer higher returns than FDs. These government schemes are also completely risk-free. Last month, the Reserve Bank of India reduced the repo rate. After this, many banks cut the interest rates on fixed deposits. However, the interest rates of small savings schemes have remained the same. In this situation, small savings schemes are now giving better returns than FDs.

We are going to tell you about some government schemes where there is no risk of losing your money. These schemes also give better returns than fixed deposits (FDs). While the average interest rate on FDs is around 7%, some small savings schemes offer much higher returns. For example, the Senior Citizen Savings Scheme offers 8.2% interest, and the Public Provident Fund gives a 7.1% annual return. In such a case, small savings schemes can be a better option than FDs.

1. Kisan Vikas Patra (KVP)

Kisan Vikas Patra is a savings scheme run by the Government of India. It currently offers 7.5% interest. The best part of this scheme is that the money you invest doubles in 115 months (i.e. 9 years and 7 months). It is a safe investment that gives guaranteed returns. You can start with just Rs 1,000, and there is no upper limit. You can also get tax exemption of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. You can get more details from the India Post website or from any bank.

2. Sukanya Samriddhi Yojana (SSY)

This scheme offers 8.2% interest and is designed for the future of girl children. You can open this account in the name of a girl child below 10 years of age. You can deposit between Rs 250 to Rs 1.5 lakh per year. The account can be opened at any bank or post office. The maturity period is till the girl turns 21, or after the age of 18 if needed. This scheme also gives a tax exemption of up to Rs 1.5 lakh under Section 80C.

3. National Savings Certificate (NSC)

NSC is a fixed return scheme with an interest rate of 7.7%, which is more than most FDs. The minimum investment amount is Rs 1,000, and there is no maximum limit. You can open multiple NSC accounts. Investment in NSC also qualifies for tax exemption under Section 80C.

4. Senior Citizen Savings Scheme (SCSS)

This scheme is specially designed for people above 60 years of age. It gives an interest rate of 8.2% per year, and the interest is paid every three months. The minimum investment is Rs 1,000, and the maximum is Rs 30 lakh. This scheme also offers tax benefits under Section 80C. However, if the interest earned in a financial year crosses Rs 50,000, TDS will be deducted. It is a good option for regular income.

5. Post Office Monthly Income Scheme (MIS)

This scheme is best for people who want fixed income every month. It offers 7.4% annual interest, which is paid every month directly into your account. You can invest up to Rs 9 lakh in a single account and up to Rs 15 lakh in a joint account. It is a great choice for earning regular income.