Saving schemes are offered by the Government of India to help people save small amounts regularly. As these investments are backed by the government, they are considered safe, giving risk-free returns. These plans also provide tax benefits, allowing investors to deduct certain amounts from their taxable income.
Investing in small savings schemes offers several benefits. Firstly, these schemes are government-backed, ensuring fixed returns and the safety of your investments. Secondly, many of them qualify for income tax benefits of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, providing additional financial advantages. Lastly, small savings schemes help diversify your investment portfolio, spreading risk across different assets and enhancing overall financial stability.
Take a look at these 9 small savings schemes, their interest rates and other details.
Post Office Savings Account (SB): You can open this account individually or jointly. A minimum deposit of Rs 500 is required, and there’s no maximum limit. The interest rate is 4% per annum.
National Savings Recurring Deposit Account (RD): This account requires a monthly deposit starting at Rs 100, with increments of Rs 10. There is no maximum limit. The interest rate is 6.7%. This account can be opened by a single adult, joint account (up to 3 adults) (Joint A or Joint B), a guardian on behalf of minor, a guardian on behalf of person of unsound mind and a minor above 10 years in his own name.
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National Savings Monthly Income Account (MIS): You can open this account with a minimum deposit of Rs 1,000, and you can deposit up to Rs 9 lakh in a single account or Rs 15 lakh in a joint account. In a joint account, all the joint holders shall have equal share in investment. The interest rate is 7.4% per annum.
Senior Citizens Savings Scheme Account (SCSS): The minimum deposit is Rs 1,000, with a maximum limit of Rs 30 lakh across all SCSS accounts for one individual. This account offers 8.2% annual interest.
Public Provident Fund Account (PPF): You need to deposit a minimum of Rs 500 in a financial year,
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