Some of the small saving shecmes offered by the Centre help people to save money in a great way. These investment schemes, backed by the government, offer safe and risk-free returns. These schemes also provide tax benefits, allowing investors to deduct certain amounts from their taxable income.
Moreover, investing in small savings schemes gives you many benefits. These schemes are government-backed, ensuring fixed returns and the safety of your investments. Many of these small saving schemes qualify for income tax benefits of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. These small savings schemes also help diversify your investment portfolio, spreading risk across different assets and enhancing overall financial stability.
Post Office Savings Account (SB):
For the Post Office Savings, you need to open this account individually or jointly and a minimum deposit of Rs 500 is required, and there’s no maximum limit. The interest rate is 4% per annum.
Public Provident Fund Account (PPF):
If you want to invest in Public Provident Fund Account (PPF), you just need to deposit a minimum of Rs 500 in a financial year, with a maximum limit of Rs 1.5 lakh. The interest rate is 7.1%. You can open a PPF account by cash/cheque and in case of cheque the date of realization of cheque in government account shall be date of opening of account/subsequent deposit in the account.
Sukanya Samriddhi Yojana:
To open one Sukanya Samriddhi accoun, the minimum deposit is Rs 250 per financial year, and you can deposit up to Rs 1.5 lakh (in multiples of Rs 50). The interest rate is 8.2% per annum.
Kisan Vikas Patra (KVP):
To open an account in Kisan Vikas Patra, you can start with a minimum deposit of Rs 1,000 (in multiples of Rs 100). Interestingly, there no maximum limit, and the interest rate is 7.5%.
