Government-backed savings schemes offer a mix of safety, guaranteed returns and tax benefits. Here’s a look at 10 popular options—from PPF and EPF to …
1/11If you want to save money but are confused about where to start, government savings schemes can be a good option. These schemes are backed by the government, making them safer than many other investment options.
Multiple such schemes also offer tax benefits and guaranteed returns, which are suitable for people who are planning for their investment. (Image: wikimedia Photo library)
2/11Public Provident Fund (PPF)
PPF is one of the safest ways to save money for the long term. Anyone can open a PPF account at a bank or post office. You can invest as little as Rs 500 and up to Rs 1.5 lakh in a financial year. The interest rate is decided by the government every quarter, and both the interest earned and maturity amount are tax-free. The current rate of interest on PPF is 7.1%. (Image: wikimedia)
3/11National Pension System (NPS)
NPS is a retirement savings scheme where you invest money regularly during your working years. The money is invested in a mix of shares, government bonds and corporate bonds, so the returns are linked to the market. When you turn 60, you can take out 60% of the money as a lump sum, and use the remaining 40% to buy a regular pension. (Image: wikipedia)
4/11Sukanya Samriddhi Yojana (SSY)
This scheme is specially meant for the girl child. Parents or legal guardians can open an account for a daughter before she turns 10. A minimum of ₹250 can be deposited in a year. The current interest rate in the SSY scheme is 8.2% per annum.
5/11Senior Citizens Savings Scheme (SCSS)
SCSS is designed for people aged 60 years and above. The government pays interest every three months which gives retirees a regular source of income. The scheme has a 5-year lock-in period, but it can be extended for another 3 years after maturity. Investments made under SCSS are eligible for tax benefits under Section 80C of the Income Tax Act. (Image: wikipedia)
6/11Post Office Monthly Income Scheme (POMIS) If you want a fixed monthly income, this scheme can be useful. You invest a lump sum amount once, and the post office pays interest every month. The scheme has a five-year maturity period. Currently, the interest rate is fixed at 7.4%.
7/11National Savings Certificate (NSC)
NSC is a government-backed savings scheme available at post offices. You can start investing with a small amount, and the investment matures after five years. The interest is compounded every year. The current National Saving Certificate NSC interest rate is 7.7% It also qualifies for tax deduction under Section 80C of the Income Tax Act. (Image: freepik)
8/11Kisan Vikas Patra (KVP)
Kisan Vikas Patra is a simple savings scheme where your money doubles after a fixed period. There is a minimum deposit of ₹1,000 with no maximum investment limit. It is available at post offices and selected banks. The scheme offers an interest rate of 7.5 % compounded annually on investment. With the current interest rate, the amount doubles in 115 months (9 years and 7 months).(Image: pti)
9/11Atal Pension Yojana (APY)
APY is mainly for people working in the unorganised sector, such as drivers, domestic workers and small shopkeepers. Subscribers have a choice to get Fixed Monthly Pension amount from ₹1000, ₹2000, ₹3000, ₹4000 and ₹5000 by paying monthly subscription. After the age of 60, they receive a guaranteed monthly pension. (Image: freepik)
10/11Employees’ Provident Fund (EPF)
EPF is a retirement savings scheme for salaried employees. Every month, both the employee and employer contribute a part of the salary to the EPF account. An employee contributes 12% of their basic salary and dearness allowance towards EPF, and the employer also makes an equal contribution. For FY 2024-25, the EPF interest rate was fixed at 8.25%. (Image: wikipedia)
11/11Mahila Samman Savings Certificate (MSSC)
The Mahila Samman Savings Certificate is a government-backed, short-term small savings scheme for women and girls. It offers a fixed interest rate of 7.5% per annum with a maximum deposit limit of ₹2,00,000 over a tenure of two years. (Image: wikipedia)
