The government has not made any changes in the interest rates on small savings schemes from April to June quarter. That is, the old interest rates will remain applicable on these schemes for this quarter also. Investors can earn good returns by investing in these schemes. Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and Senior Citizen Saving Scheme (SCSS) are small saving schemes that offer better returns. Let’s know about them.
PPF
According to the website of India Post, an account can be opened in Public Provident Fund with a minimum of Rs 500. At the same time, a maximum of 1.5 lakh rupees can be invested in the account annually. According to SEBI Registered Investment Advisor Jitendra Solanki, PPF comes with a maturity period of 15 years. This can be extended further for 5 years. The interest rate on PPF is fixed by the government every three months. 7.10 percent interest rate is currently being offered on PPF. Under this scheme, interest is paid on 31 March every year. An investor can also take a loan on the amount of PPF. The special thing is that investors also get tax benefits in this.
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Senior Citizen Saving Scheme
It is a scheme offering guaranteed retirement income. Indian citizens above 60 years of age can open an account under this scheme. For those who have retired under the voluntary or special voluntary scheme, the age requirement is 55 years. At the same time, for those who have retired from the defense services (other than civilian security staff), the age for investment has been kept at 50 years with certain conditions. Minimum investment of Rs 1000 and maximum investment of Rs 15 lakh can be made in this scheme. The duration of this scheme is 5 years. This can be extended for 3 years. In this scheme, the account can be opened singly or jointly (with spouse). Currently, the interest rate in this scheme is 7.4 percent per annum.
Sukanya Samriddhi Yojana
This scheme is for daughters. Under this scheme, parents can open an account in the name of their daughter, younger than 10 years. This account can be opened by going to the post office or any bank. This account can be opened for a maximum of two daughters of a family. According to the website of India Post, this account can be opened with a minimum amount of Rs 250. A minimum of Rs 250 and a maximum of Rs 1.50 lakh can be invested in a financial year. According to Tax and Investment Expert Balwant Jain, the interest rate in this scheme is fixed by the government for every quarter. The amount can be deposited in lump sum or in installments in this account. Funds can be deposited in the account till the completion of maximum 15 years of account opening. The scheme is currently offering an annual interest rate of 7.6 per cent. Interest will be deposited in the account at the end of every financial year. Interest received in this scheme is tax free.
