Interest rates on small business savings plans are a topic of interest for investors looking for safe and reliable options. The government periodically reviews and adjusts the rates on these plans. Below are the current rates for some of the most common small business savings programs:
Public Pension Fund (PPF): Interest rate 7.1 percent
PPF is a government-backed long-term investment option, which requires a minimum annual deposit of Rs 500 and a maximum of Rs 1,50,000. It offers tax benefits under Section 80C of the Income Tax Act.
Senior Citizens Savings Scheme (SCSS): Interest rate 8.2 percent
Designed for senior citizens, this scheme allows a minimum deposit of Rs 1,000 and a maximum of Rs 30 lakh across all accounts. SCSS is available to people aged 60 years and above. Additionally, those who have voluntarily retired after the age of 55 years are also eligible for this scheme, provided they invest within one month of receiving their retirement benefits.
Sukanya Samriddhi Account Scheme: Interest rate 8.2 percent per year
Sukanya Samriddhi Yojana (SSY) is a government savings scheme that encourages parents to invest in their daughters. Launched to support the government’s Beti Bachao Beti Padhao initiative, SSY offers attractive tax benefits and incentives to help protect the finances of girls. This scheme can be started before they turn 10 years old. The minimum deposit is Rs 250, while the maximum is Rs 1,50,000 per year.
Kisan Vikas Patra (KVP): Interest rate 7.5 percent per year
Kisan Vikas Patra (KVP) is a certificate scheme launched by the Government of India in 1988. It doubles a single investment over a period of 115 months. If you deposit Rs 5,000, you will get Rs 10,000 on maturity. The minimum investment amount is Rs 1,000 and there is no maximum limit. If you invest a lump sum today, you can get double the amount at the end of the 115th month. The scheme was launched to enable farmers to save for the long term but is now available to everyone. KVP certificates can be purchased from select public sector banks and post offices.
National Savings Certificate (NSC): Interest rate 7.7 percent per year
The National Savings Certificate (NSC) is a fixed-income investment scheme that can be opened at any post office branch. It is an initiative of the Government of India that encourages subscribers (mainly small and middle-income investors) to invest while saving and also save on income tax. The NSC requires a minimum investment of Rs 1,000, with no upper limit. Interest is paid on maturity, which is usually five years.
Post Office Monthly Income Scheme (POMIS): Interest rate 7.4 percent per year
Post Office Monthly Income Scheme (POMIS) is a government-backed small business savings scheme that allows the investor to set aside (save) a specific amount every month. Interest is then added to this investment at the applicable rate and paid to the depositor every month. POMIS requires a minimum deposit of Rs 1,000 and the maximum limit is Rs 900,000 for an individual account and Rs 150,000 for joint accounts.
Mahila Samman Savings Certificate: Interest rate 7.5 percent per year
Mahila Samman Savings Certificate is a unique savings scheme for women announced by the government in the 2023 budget. The scheme is valid from April 2023 to March 2025 and aims to empower women by increasing their participation in investments. It offers a maximum deposit facility of up to Rs 2,00,000 in the name of women or girls for two years at a fixed rate of interest.
Post Office Recurring Deposit Account: Interest rate 6.7 percent per year
The Post Office Five-Year Recurring Deposit Scheme, also known as National Savings Recurring Deposit, allows you to save regularly on a monthly basis for five years i.e. in 60 monthly instalments. These deposits earn interest as per the applicable rate compounded every quarter.
First published: August 20, 2024 | 1:46 PM IS
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