Maximizing savings and exploring the top 10 small saving schemes with the highest returns
Saving money is an essential aspect of financial planning, and small saving schemes provide individuals with a secure and lucrative way to grow their funds. With many options available, choosing schemes that offer the highest returns and align with your financial goals is important. Here are the top 10 small saving schemes in India that provide excellent returns and can help you build a strong financial foundation:
1. Public Provident Fund (PPF):
PPF is a government-backed savings scheme offering attractive interest rates and tax benefits. With a maturity period of 15 years, it is a long-term investment option that provides consistent returns and helps individuals save for retirement.
2. National Savings Certificate (NSC):
NSC is a fixed-income scheme that offers guaranteed returns and is available in various maturity periods. The interest earned on NSC is compounded annually and is eligible for tax deductions under Section 80C of the Income Tax Act.
3. Senior Citizens’ Saving Scheme (SCSS):
SCSS is designed for senior citizens and offers higher interest rates than other small saving schemes. It provides a regular source of income for retirees and has a maturity period of 5 years, extendable by another 3 years.
4. Sukanya Samriddhi Yojana:
This scheme aims to promote the welfare of the girl child and provides attractive returns along with tax benefits. It has a lock-in period until the girl turns 21 and can be used for her education or marriage expenses.
5. Post Office Monthly Income Scheme (POMIS):
POMIS is a fixed monthly income scheme that provides stable returns for investors looking for regular income.
6. Kisan Vikas Patra (KVP):
KVP is a low-risk investment option that doubles your investment amount in a predetermined period. It is suitable for individuals who prefer a lump-sum return at maturity and is available in various denominations.
7. Pradhan Mantri Vaya Vandana Yojana (PMVVY):
PMVVY is exclusively for senior citizens and provides a pension-based income with a guaranteed interest rate.
8. Tax-Saving Fixed Deposits:
Although not a government-backed scheme, tax-saving fixed deposits offered by banks provide higher interest rates and offer tax benefits under Section 80C of the Income Tax Act.
9. Atal Pension Yojana (APY):
APY is a pension scheme targeted at the unorganized sector and offers a fixed monthly pension after retirement.
10. National Pension System (NPS):
While not a traditional small saving scheme, NPS offers market-linked returns and allows individuals to invest in equity and debt funds.
