10 Top Government Savings Schemes, Choose the Best Option; Check new interest rates, facilities

There are many government savings schemes in India that offer various benefits to individuals looking to invest their money. The government has various savings schemes to help people save money for their future needs and to promote the culture of savings in the country. These savings schemes provide a safe and secure investment option for individuals and help them convert their savings into productive investments, which can contribute to the overall economic development of the country.

The schemes cater to different sections of the society. Some savings schemes are for senior citizens, some are targeted for the welfare of women. There are special schemes for farmers as well as salaried people.

The government also offers tax benefits on some of these savings schemes, making them an attractive investment option for individuals looking to save on taxes. Apart from this, these savings schemes also help the government to raise funds for various developmental projects and initiatives.

Check out ten government-backed schemes that can be availed from banks/post offices across the country;

1. National Savings (Monthly Income Account) Scheme

• 1000 in multiples thereof with a minimum of Rs. Maximum Rs 9 lakh in single account and Rs 15 lakh in joint account.
• The account matures in 5 years.
• A depositor can operate more than one account under this scheme subject to the maximum amount that can be invested in a single or joint account.
• The account can be prematurely closed after one year but before the end of three years at the deduction of 2% of the deposit amount. If the account is closed after the expiry of three years, 1% of the deposit will be deducted.
• Interest rate: (April 01, 2023 to June 30, 2023) – 7.4%

2. National Savings Fixed Deposit Account

• There are four categories of Fixed Deposit Account available – 1 year, 2 years, 3 years and 5 years
• Minimum deposit of Rs.1000 and in multiples of Rs.100 thereafter.
• No maximum deposit limit.
• The account can be closed after six months. Where deposits in the account are prematurely withdrawn after six months but before one year, simple interest at POSA rate will be payable.
• Deposits in 5-year fixed deposits qualify for deduction under section 80-C of the Income Tax Act.
• Interest: (April 01, 2023 to June 30, 2023)- 6.80 (1 year), 6.90 (2 years), 7 (3 years) and 7.5% (5 years).

3. Senior Citizen Savings Scheme

• Minimum deposit of Rs.1000 in multiples thereof with a maximum deposit of Rs.30 lakhs.
• An individual who has attained the age of 60 years or more on the date of opening of the account or an individual who has attained the age of 55 years or more but is less than 60 years and is under retirement, VRS or special VRS Has retired, open account.
• Retired personnel of Defense Services (excluding civilian defense employees) can open the account on attaining the age of fifty years subject to fulfillment of other specified conditions.
• A depositor can open the account individually or jointly with his/her spouse.
• Interest will be payable on the first working day of April/July/October/January from the date of deposit till March 31/June 30/September 30/December 31, as the case may be, in the first instance and thereafter, interest will be payable on April/July /on the first working day of October/January.
• The account can be closed after the expiry of 5 years from the date of opening of the account.
• The depositor can extend the account for a further period of 3 years.
• Premature closure is permitted subject to certain conditions.
• The amount deposited in SCSS qualifies for deduction under section 80-C of the Income Tax Act.
• Interest Rate: (April 01, 2023 to June 30, 2023)- 8.20%

4. National Savings Certificate

• Minimum Deposit Rs. 1000/- and thereafter Rs. In multiples of 100.
• Account matures in 5 years
• No maximum deposit limit.
• A single holder type account can be opened by an adult for himself or on behalf of a minor.
• Single holder type of account can also be opened by a minor on attaining the age of 10 years.
• Joint ‘A’ type accounts can be opened by three adults which will be payable to both the holders jointly or to the survivor.
• Joint ‘B’ type accounts can be opened by three adults payable to any one of the survivors.
• Mortgage loan facility is available with the banks.
• Interest: (April 01, 2023 to June 30, 2023)- 7.7%.

5. Public Provident Fund Scheme

• Minimum deposit of Rs.500 and maximum deposit of Rs.1,50,000 in a financial year.
• Loan facility is available from 3rd financial year to 6th financial year.
• Withdrawal is allowed every year from 7th financial year.
• The account matures on completion of fifteen financial years from the end of the year in which the account was opened.
• After maturity, the account can be extended for any number of blocks of 5 years with further deposits.
• The account can be maintained indefinitely after maturity with the prevailing rate of interest and without deposit.
• The amount in the PPF account is not subject to attachment under any court order or decree.
• The deposit qualifies for deduction under section 80-C of the IT Act.
• The interest earned in the account is exempt from income tax under section-10 of ITAct.
• Interest rate: (April 01, 2023 to June 30, 2023) – 7.1%

6. Sukanya Samriddhi Account

• Minimum deposit of Rs.250 and maximum deposit of Rs.1.5 lakh in a financial year.
• The account can be opened in the name of the girl child till she attains the age of 10 years.
• Only one account can be opened in the name of a girl child.
• Accounts can be opened in post offices and authorized banks.
• Withdrawals will be permitted for the purpose of higher education of the account holder to meet education expenses.
• The account can be prematurely closed in case of marriage of girl child after attaining the age of 18 years.
• The account can be transferred from one post office/bank to another post office anywhere in India.
• The account will mature on completion of 21 years from the date of opening of the account.
• The deposit qualifies for deduction under section 80-C of the IT Act.
• The interest earned in the account is exempt from income tax under section-10 of ITAct.
• Interest Rate: (April 01, 2023 to June 30, 2023)- 8%

7. Mahila Samman Savings Certificate

• Mahila Samman Savings Certificate Scheme is a one-time new small savings scheme of the government. Read more
• It will provide deposit facility up to Rs 2 lakh in the name of women or girls for a period of 2 years at a fixed interest rate of 7.5 per cent with partial withdrawal option.

8. Kisan Vikas Patra

• Minimum of Rs.1000 and in multiples of Rs.100 thereafter.
• No maximum deposit limit.
• A single holder type account can be opened by an adult for himself or on behalf of a minor.
• Single holder type of account can also be opened by a minor on attaining the age of 10 years.
• Joint ‘A’ type accounts can be opened by three adults which will be payable to both the holders jointly or to the survivor.
• Joint ‘B’ type accounts can be opened by three adults payable to any one of the survivors.
• Accounts can be opened in post offices and authorized banks.
• KVP can be transferred from person to person and from one post office to another.
• KVP can be redeemed after two and a half years from the date of investment at the following rates.
• Money doubles on maturity.
• Interest rate: (April 01, 2023 to June 30, 2023)- 7.5% (115 months)

9. Recurring Deposit Account Scheme

• A minimum of Rs 100 per month can be deposited in this scheme, which has no maximum limit.
• Advance deposits can be made for 6 months or 12 months at the option of the depositor and the discount can be earned.
• The plan account matures in 5 years. Withdrawal up to 50% of the existing balance is permitted after one year of account opening.
• The account can be prematurely closed after 3 years with simple interest at the rate of Post Office Savings Account (POSA).
• The interest rate on Post Office RD is 6.2% p.a. (compounded quarterly) with effect from April 01, 2023.

10. Post Office Savings Account

• The scheme requires a minimum deposit of Rs 500 and there is no limit on the maximum deposit.
• An individual can open the account in his/her name either individually or jointly with any adult. The account can be opened on behalf of a minor.
• Also, a minor who has attained the age of 10 years can open the account independently.
• Interest up to Rs 10,000 in the account is eligible for deduction from income in a financial year under the Income Tax Act.
• The schemes are offering 4% interest rate

These were some of the popular government savings schemes in India. It is recommended that you thoroughly research each scheme and choose the one that best suits your investment goals and financial needs.