Small Savings Schemes: After reducing the repo rate of the Reserve Bank of India (RBI), banks have also reduced interest on fixed deposits (FD). Apart from FD, many banks are also losing interest rates on savings accounts. However, due to guaranteed returns, the trust of the people on FD still remains. Today we are going to tell you about some such government schemes through this news, in which there is no danger of drowning money and returns are more than FD.

Sukanya Samriddhi Yojana

In the Sukanya Samriddhi Yojana (Sukanya Samriddhi Yojana), investors are getting interest at the rate of 8.2 percent. The purpose of this savings scheme of the Government of India is to secure the future of the girls so that there is no obstruction in their education or marriage in the coming time. Under this scheme, their parents or legal guardians can open the account in the name of girls under 10 years of age.

In this, from Rs 250 to Rs 1.5 lakh can be deposited annually. This account can be opened by going to banks or post offices. The maturity period in the scheme is about the girl’s 21 years or 18 years of marriage. Under Section 80C of the Income Tax Act, 1961, it gets tax exemption up to Rs 1.5 lakh.

Farmer development letter

Kisan Vikas Patra is also a savings scheme of the Government of India, on which 7.5 percent interest is currently getting. Its most special thing is that the amount invested in it doubles in 115 months i.e. 9 years and 7 months. It is also a safe option of investment, which provides guaranteed returns.

In this scheme, minimum can start investing from Rs 1000 and there is no upper limit. In this also, under Section 80C of the Income Tax Act, 1961, it gets tax exemption up to Rs 1.5 lakh. You can get more information about this by visiting the Indian post website and or any bank website.

National saving certificate

The National Saving Certificate (NSC) gets interest at a rate of 7.7 percent annually. It is a maturity period year. In this too, minimum can start saving from Rs 1000 and there is no limit for maximum investment. NSC will have to pay income tax at interest rate.

Senior Citizen Savings Scheme (SCSS)

The aim of this scheme of the government is to give financial stability to the people after retirement. In this, the rate of 8.2 percent on the investment of retirement funds gets a big interest. People above 60 years can invest in the scheme. The minimum deposit limit is Rs 1000 and the maximum deposit limit is Rs 30,00,000. In this also, tax benefit is available up to Rs 1.5 lakh.

Post Office Monthly Income Scheme

Investors get interest at the rate of 7.4 percent on the money invested in Post Office Monthly Income Scheme. In this too, the maturity period is 5 years. You can start investing in this scheme with Rs 1,000. If you want, you can also invest in multiple rupees multiple rupees in it. The limit of maximum deposit for single account is Rs 9 lakh, the limit of maximum deposits for joint account is Rs 15 lakh.

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Small Savings Schemes: The government is going to review the interest rates of small savings schemes like Public Provident Fund (PPF), National Saving Certificate (NSC), Senior Citizen Savings Scheme (SCSS) on 30 June 2025. This review occurs every quarter and remains applicable for the next three months. In the review going to be held this time, new interest rates will be set for July to September 2025.

RBI cut repo rate several times

So far, the interest rates on the post office saving scheme are the same from the beginning of the year, but now it is likely to change. This is because the Reserve Bank of India (RBI) has cut the repo rate by 100 basis points this year. The first has cut 25 basis points in February, 25 basis points in April and 50 basis points in June. Repo rate cuts have also affected the bond yield and banks have reduced interest rates on FDED Deposit.

The bank is currently giving an interest of 7.1 percent on the Public Provident Fund (PPF), which is very close to the lowest interest rate seen in the last 5 decades. Earlier, before August 1974, the interest rate on PPF was seen less than 7 percent. PPF is one of the most popular small saving schemes for long -term investment, but may be reduced to the interest rate on it in the next review.

On what basis does the government decide the interest rate?

The interest rate on PPF is based on the formula suggested by the Shyamala Gopinath Committee. According to this formula, the interest rates on PPF should be 25 basis points higher than the average yield of 10 -year government bonds. Currently, the Bond Yield is at around 6.325 %. This indicates that investors get low returns.

According to the formula, the interest rate of PPF may fall by 6.575 percent, which is 7.10 % to 52.5 basis points. In such a situation, it is better to invest in these schemes before the advice of experts, possible cuts.

Explain that small savings schemes are special for those investors who want guaranteed returns by staying away from the fluctuations of the stock market. The government reviews the interest rate being received on it every three months so that these schemes remain attracted to the investors.

The government fixes interest rates based on the recommendations of the Shyamala Gopinath Committee, which states that interest rates for small savings schemes should be 1 percent more than 0.25 % in the same period of interest rates for small savings schemes. By the way, the interest rate on PPF remains at an equal 7.10 percent from 1 April 2020. Earlier, the rates were 7.90 percent from 1 July 2019 to 31 March 2020. Similarly, 9.5 percent in 2000 and interest rates on it in 2003 were 8 percent.

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