Small Savings Schemes: Leave the tension of stock market, you will get interest up to 8.2% in these schemes, money will also be safe.

Business Desk – Small Savings Schemes: If the daily fluctuations of the stock market bother you and you want good returns on your money without risk, then post office and government supported Small Savings Schemes can be a better option for you. In these schemes, investors are getting annual interest up to 8.2 percent. The biggest thing is that these schemes are not affected by market decline or fluctuations, hence investment is considered completely safe.

The stock market has seen continuous ups and downs in recent months. In such an environment, many investors are looking for safe investment options. Financial advisors also believe that equities can give better returns in the long run, but for those who do not want to take risk, small savings schemes are a strong option. The government has not made any change in the interest rates of these schemes for the September quarter.

PPF: Tax saving and reliable long term investment

Public Provident Fund (PPF) has long been among the most popular government savings schemes. At present, it is getting 7.1 percent annual interest. Its maturity period is 15 years. Under the old tax system, investments made in it get tax exemption under Section 80C of the Income Tax Act. Not only this, the interest received in this and the entire amount received on maturity is also tax free.

NSC: Option of fixed returns in 5 years

If you want a safe investment for medium term, then National Savings Certificate (NSC) can be a good option. Currently, this scheme is offering 7.7 percent annual interest and its maturity period is 5 years. Investing in this also gives tax benefits under Section 80C.

KVP: Government plan to double money

Kisan Vikas Patra (KVP) is suitable for investors who want to grow their investment without risk. At present 7.5 percent annual interest is being given in this scheme. According to the current interest rate, the amount invested in it doubles in 115 months.

SSY: Highest interest for the future of daughters

If you have a daughter below 10 years of age, then Sukanya Samriddhi Yojana (SSY) is considered to be one of the best options. This scheme is currently offering 8.2 percent annual interest, which is the highest among small savings schemes. This scheme has been made keeping in mind the education and future needs of daughters.

SCSS: Great earning for senior citizens

Senior Citizens Savings Scheme (SCSS) is also currently offering 8.2 percent annual interest. People of 60 years of age or above can invest in this scheme. This is one of the most popular government schemes for senior citizens looking for regular income.

Post office time deposit also becomes a good option

Post Office Time Deposit works like a bank FD, but it is backed by the government. The interest rates according to different periods are as follows.

6.9 percent on 1 year deposit
7.0 percent on 2 year deposit
7.1 percent on 3 year deposit
7.5 percent on 5 year deposit

Five year time deposits also get the benefit of tax exemption under Section 80C.

Interest rates on other small savings schemes

Sukanya Samriddhi Yojana (SSY) – 8.2 percent
Senior Citizens Savings Scheme (SCSS) – 8.2 percent
National Savings Certificate (NSC) – 7.7 percent
Kisan Vikas Patra (KVP) – 7.5 percent
5 year post office time deposit – 7.5 percent
Post Office Monthly Income Scheme (POMIS) – 7.4 percent
Public Provident Fund (PPF) – 7.1 percent
3 year post office time deposit – 7.1 percent
2 Year Post Office Time Deposit – 7.0%
1 year post office time deposit – 6.9 percent
Post Office RD – 6.7 percent
Post Office Savings Account – 4.0 percent

For which investors are these schemes?

If your goal is safe investment, assured returns and capital protection, then these government schemes can become a strong part of your portfolio. Especially in times like this, when there is constant volatility in the stock market, small savings schemes provide both stable returns and peace of mind to investors. However, before investing, it would be better to choose the scheme keeping in mind your financial need, investment period and goal.