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      Small Savings Schemes

      • 5 min read
      • Last Modified Date: January 2, 2024
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      Small savings schemes are an excellent way to save money. They offer a good rate of interest and can be used as an alternative form of collateral for investments, bonds, and property. The following schemes are available throughout the country and are some of the most popular ones that you can consider:

      Post Office Time Deposit Scheme

      The Post Office Time Deposit Scheme (POSTD) is a small savings scheme launched by the Government of India to provide investment opportunities in the secondary market. The scheme was launched on 15th September, 2015.

      This scheme is popular in rural as well as remote corners of the country, where the people have limited access to other financial products or alternative investments. The Ministry of Finance sets the interest rates for this scheme based on the performance of government securities, which is generally spread across the yields of the government sector.

      National Savings Certificate (NSC)

      • The National Savings Certificate (NSC) is a fixed income small savings scheme offered by the government. It is an effective and safe investment option that can help you save money in your bank account or even earn interest on it. The risk is also very low in this scheme. 
      • NSC can be purchased in multiples of Rs. 100 and offers fixed returns with no risk involved, unlike other savings schemes such as Public Provident Fund (PPF), which have variable rates based on market conditions or inflation rate at any given time. The tenure of this scheme is of 5 years. 
      • You can also avail yourself of the tax benefits of this scheme as per Section 80C of the I.T. Act. This scheme is accessible across NSC post offices and is highly promoted by the Indian government. 

      Public Provident Fund (PPF)

      If you are looking for a safe investment option, the Public Provident Fund (PPF) is the best option. PPF is a very popular long-term fixed income investment scheme that offers a good return on your savings. It’s also an income tax-free savings plan that provides tax benefits to its participants.

      PPF was launched by the government of India in the year 1968 under the aegis of the Ministry of Finance’s National Savings Institute.

      The tenure of this scheme is 15 years, which can be renewed at intervals of 5 years. The interest rate is also good in this scheme, which is 7.1%.

      The investment has to be made in multiples of ₹500 and the maximum investment can be ₹1.5 lakh per annum. 

      Post Office Savings Account

      • Post Office Savings Account is a small savings scheme offered by the Government of India. You can open an account with a minimum deposit of ₹20 and you can deposit any amount between ₹100 and ₹1 lakh in your
      • Post Office Savings Account (PSA).
      • The interest rate of this account is 4% per annum. Also, the tax free interest for post office savings accounts is upto ₹10,000.
      • This savings account is very popular across India, as minors over the age of 10 years are eligible for opening the account.
      • This makes it easily accessible for young people in rural areas of the country, where minor neo-banking services have not reached yet. 

      As it offers guaranteed returns on investments, the savings account is also very popular among older individuals. If your priority is to keep your investment safe in a governmental institution, then opening a post office savings account is the best option for you. 

      • National Savings Certificate (NSC), Public Provident Fund (PPF), Post Office Time Deposit Scheme, Senior Citizen’s Savings Scheme and Post Office Savings Account are safe as they come under the Government Securities Act, 2006 and offer assured returns.
      • Open an account with a bank or post office.
      • You can open an NSC savings account online or through the National Savings Certificate (NSC), Public Provident Fund (PPF), Post Office Time Deposit Scheme, Senior Citizen’s Savings Scheme and Post Office Savings Accounts.
      • These accounts offer assured returns on your investment, as they come under the Government Securities Act, 2006 and offer safe banking facilities to their depositors. The interest rates vary between banks but generally range between 4% to 8%. If you wish to invest in other products such as corporate bonds or fixed deposits then do so at your own risk as these investments carry no guarantee from the Reserve Bank of India (RBI).

      Small savings scheme is the best way to save money!

      • Small savings schemes are the best way to start saving money. They offer assured returns, tax-free earnings, and a safe place to keep your hard-earned cash.
      • The government has made it easier for everyone to invest in small savings plans by allowing you to withdraw your money without paying any penalties or taxes.


      So, if you are looking for ways to secure your future, then you can choose the best small savings scheme with the help of this article. Apart from savings schemes, if you want a higher tier of income on returns, then investing in commercial and residential real estate is the way to go! You can earn high returns and also easily manage your portfolio by investing through a safe and secure platform like Assetmonk

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