These small savings schemes are popular among the salaried class for tax savings, and also for their returns. These schemes offer higher interest rates than bank fixed deposits. While presenting, Union Budget 2023, Finance Minister proposed to double the deposit limits for Senior Citizen Savings Scheme (SCSS) and also introduced a new small savings scheme—Mahila Samman Savings Certificate.
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The maximum deposit limit for MIS has been increased from ₹4.5 lakh to ₹9 lakh for a single account and from ₹9 lakh to ₹15 lakh for a joint account., while for SCSS the amount has been doubled. Effective 1 April 2023, SCSS account holders can deposit a sum of ₹30 lakh instead of ₹15 lakh.
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For the quarter ending 31 March, the government is offering the following interest on the popular small savings scheme.
5 high-Interest rates paying government schemes
1) Senior Citizens’ Saving Scheme (SCSS) – 8%
Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument offered to individuals aged over 60 years. The maturity period of SCSS is five years. However, the tenure can be extended by three more years after the maturity period of five years is over
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2) Sukanya Samriddhi Yojana – 7.6%
Sukanya Samriddhi Yojana (SSY) is a government-backed small savings scheme initiated to promote saving for the financial well-being of a girl child.
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3) Kisan Vikas Patra (KVP) – 7.2%
The Kisan Vikas Patra scheme is a risk-free investment option offered by the Indian post office, which is a preferred choice for many people in the country. It is a good option for those looking for long-term investment.
4) Public Provident Fund (PPF) – 7.1%
A public provident fund (PPF) is a popular investment scheme on account of its multiple attractive features and benefits.
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5) National Saving Certificate (NSC) – 7%
NSC is a fixed-income scheme that can be opened at a post office. The scheme is a low-risk product and is secure.
