Small Savings Schemes Offer Up To 6.9% Return. Check Interest Rates Here
Government of India offers various small savings schemes to investors which come with benefit to save income tax. Currently, the government is offering eight different small savings schemes to investors. People can invest their money in government's small savings schemes via selected banks and Post Offices across the country. Currently, government offers maximum of 6.9 per cent annual interest on Sukanya Samriddhi Scheme. Government had reduced the interest on Small Savings Schemes with effect from April 1, 2021. Interest of Sukanya Samriddhi Scheme was reduced to 6.9 per cent from 7.6 per cent. Likewise, interest rate on Public Provident Fund (PPF) was reduced to 6.4 per cent from 7.1 per cent.
Here are latest interest rates offered by the government on various Small Savings Schemes:
| Small Savings Scheme | Interest Rate |
|---|---|
| Savings Deposit | 3.50% |
| 1 Year Time Deposit | 4.40% |
| 2 Year Time Deposit | 5% |
| 3 Year Time Deposit | 5.10% |
| 5 Year Time Deposit | 5.80% |
| 5 Year Recurring Deposit | 5.30% |
| Senior Citizen Savings Scheme | 6.50% |
| Monthly Income Account | 5.70% |
| National Savings Certificate | 5.90% |
| Public Provident Fund | 6.40% |
| Kisan Vikas Patra | 6.20% |
| Sukanya Samriddhi Scheme | 6.90% |
Source: Finance Ministry
Using these products, an investor can claim a deduction up to Rs 1.5 lakh in a financial year from taxable income under Section 80C of the Income Tax Act. Income tax benefits are available on Time Deposit (TD), Senior Citizen Savings Scheme (SCSS
