Small Savings Schemes: Check latest interest rates for PPF, Sukanya Samriddhi, SCSS, NSC and Kisan Vikas Patra

The central government manages several small savings schemes to offer low-risk and secure investment avenues to investors across all categories. These investment options, known as Small Savings Schemes, are primarily offered by the Post Offices and public sector banks. Several private sector banks also offer these schemes.

The government-backed Small Savings Schemes include the Public Provident Fund (PPF), the Senior Citizen Savings Scheme (SCSS), the National Savings Certificate (NSC), the Kisan Vikas Patra (KVP), and the Sukanya Samriddhi Yojana (SSY).

The interest rates on these schemes are revised periodically. In the latest review in June, the government did not announce any major changes to these savings schemes. These schemes are more preferred by conservative investors who look for a low-risk instrument with steady returns.

Here are the current interest rates offered on various Small Savings Schemes:

Public Provident Fund

The Public Provident Fund or PPF is a long-term savings scheme. The maximum investment period for PPF is 15 years and can be extended in blocks of 5 years each. The PPF is completely tax-free, meaning you have to pay no taxes on the interest earned. The maximum deposit in one year is capped at ₹1.5 lakh per annum.

The interest rate of PPF has been fixed at 7.1%, and the government has not changed it in the last four years.

Senior Citizen Savings Scheme

The Senior Citizen Savings Scheme (SCSS) is aimed at offering financial benefits to citizens aged 60 and above. This scheme offers a regular income stream for senior citizens and gives tax benefits under Section 80C of the Income Tax Act. Individuals can deposit a lump sum amount of a maximum ₹30 lakh in the SCSS and get regular income. The government revises the interest rate for SCSS every quarter.

Currently, SCSS interest rate stands at 8.2% (for the July-September 2024 quarter).

National Savings Certificate

The National Savings Certificate (NCS) is a fixed-income investment scheme backed by the Union government. NCS accounts can be opened at any post office. It is a bond scheme that provides tax benefits under Section 80C and also gives fixed returns. It has a maturity period of five years. The minimum investment required is ₹1,000 and in multiples of ₹100 thereafter, while there is no maximum limit. The government sets the interest rate for the National Savings Certificate every quarter. Currently, the NSC interest rate has been fixed at 7.7% per annum.

Kisan Vikas Patra

The Kisan Vikas Patra (KVP) scheme is another small savings scheme by the government to encourage investors from middle and low-income groups. While the scheme was initially meant for farmers, anyone over the age of 18 can invest. KVP has a maturity period of 113 months. The government sets the KVP interest rates every quarter, though it has not revised the same since April 2023. The current KVP interest rate is 7.5% per annum, which is compounded annually.

Sukanya Samriddhi Yojana

Meant to protect the financial future of the girl child, the Sukanya Samriddhi Yojana (SSY) is another small savings scheme, which was launched in 2015.

This scheme lets parents and guardians of a girl child open an SSY account with an investment of as low as ₹250. The maximum investment limit is ₹1.5 lakh per annum. The maximum period of deposit in an SSY account is 15 years, but the maturity period is 21 years after opening. Guardians can open an SSY account in the name of a girl child below 10 years of age. The government sets the interest rate for Sukanya Samriddhi Yojana every quarter.

Currently, the Sukanya Samriddhi Yojana interest rate has been fixed at 8.2% per annum.