Saving Plans

Public Provident Fund (PPF)

Achal Kailas Aglawe March 17, 2025

The Public Provident Fund is a long-term investment option offering an attractive interest rate and tax benefits.

Interest Rate: 7.1% per annum (compounded annually)
Tenure: 15 years, with the option to extend in blocks of 5 years
Minimum Investment: ₹500 per year
Maximum Investment: ₹1.5 lakh per year
Tax Benefits: Exempt-Exempt-Exempt (EEE) status; investments, interest earned, and maturity amount are tax-free

PPF is ideal for individuals seeking a safe investment with tax-free returns over the long term.

National Savings Certificate (NSC)

NSC is a fixed-income investment scheme suitable for conservative investors.

Interest Rate: 6.8% per annum (compounded annually but payable at maturity)
Tenure: 5 years
Minimum Investment: ₹1,000
Maximum Investment: No upper limit
Tax Benefits: Investments up to ₹1.5 lakh qualify for deduction under Section 80C of the Income Tax Act

NSC is a low-risk investment with guaranteed returns, making it suitable for risk-averse investors.

Kisan Vikas Patra (KVP)

KVP is designed to encourage long-term savings by doubling the investment over a predetermined period.

KVP is suitable for individuals seeking a secure, long-term investment option.

Senior Citizen Savings Scheme (SCSS)

SCSS is tailored for senior citizens, offering regular income and tax benefits.

Interest Rate: 8.2% per annum (payable quarterly)
Tenure: 5 years, extendable by an additional 3 years
Minimum Investment: ₹1,000
Maximum Investment: ₹15 lakh
Tax Benefits: Investments up to ₹1.5 lakh qualify for deduction under Section 80C; interest is taxable

SCSS is ideal for retirees looking for a safe investment with regular income.

Post Office Monthly Income Scheme (POMIS)

POMIS provides a steady monthly income to investors.

POMIS is suitable for individuals seeking a regular monthly income from their investments.

Sukanya Samriddhi Yojana (SSY)

SSY is a savings scheme aimed at securing the future of the girl child.

Interest Rate: 7.6% per annum (compounded annually)
Tenure: 21 years from the date of account opening or until the girl marries after the age of 18
Minimum Investment: ₹250 per year
Maximum Investment: ₹1.5 lakh per year
Tax Benefits: EEE status; investments, interest earned, and maturity amount are tax-free

SSY is ideal for parents looking to build a corpus for their daughter’s education and marriage.

Atal Pension Yojana (APY)

APY is a pension scheme targeting workers in the unorganized sector.

Pension Benefits: Guaranteed monthly pensions ranging from ₹1,000 to ₹5,000
Eligibility: Individuals aged between 18 and 40 years
Contribution: Based on the age of joining and desired pension amount
Tax Benefits: Contributions are eligible for tax deductions under Section 80CCD(1)

APY encourages individuals to save systematically for their retirement.

National Pension Scheme (NPS)

NPS is a government-backed retirement scheme offering market-linked returns.

**Tax Benefits

Interest Rate: 9-15% (market-linked)

Tenure: Until retirement (60 years)

Minimum Investment: ₹500 per month

Maximum Investment: No upper limit