Yes. Small Savings Schemes are good investment option. Investing in small saving scheme will serve a long term goal such as children’s education, marriage etc.
Investment will inculcate habit of saving in you. Your money is safe as these savings schemes are backed by the Government. Interest rates on such schemes are revised by Ministry of Finance on quarterly basis.
Now a days small savings scheme provides better interest rate than bank FD. Many of the schemes provide tax benefits also.
What are the different Small savings schemes in India?
Here is the list of various Small Savings Schemes with current rate of interest:
- Senior Citizen Savings Scheme (SCSS)
- It offers 8% interest rate.
- It offers 8% interest rate.
- Monthly Income Account Scheme (MIS)
- It offers 7.1% interest rate.
- It offers 7.1% interest rate.
- National Savings Certification (NSC)
- It offers 7% interest rate.
- It offers 7% interest rate.
- Public Provident Fund (PPF)
- It offers 7.1% interest rate.
- It offers 7.1% interest rate.
- Kisan Vikas Patra (KVP)
- It offers 7.2% interest rate. It will mature in 120 months.
- It offers 7.2% interest rate. It will mature in 120 months.
- Sukanya Samriddhi Scheme (SSS)
- It offers 7.6% interest rate.
Benefits of small savings scheme:
- High security: Investment in these schemes is highly secured and safe as they are backed by Government of India.
- Long Term Savings: As most of the schemes with long lock in period, they offer long term savings.
- Inculcate habit of saving: As you are investing your money on regular intervals, it inculcates habit of saving.
- Tax benefits: Various scheme provide tax benefits under Section 80C of Income Tax Act 1961.
How to Apply For Small Savings Scheme?
Almost all of the schemes are available at authorised banks and Post offices. You can visit your nearest bank branch or post office to apply for particular scheme.
You can also apply online on official website of the scheme. Here is link for National Savings Institute http://www.nsiindia.gov.in/
Documents required to apply small savings scheme
Basic documents like Aadhar card, PAN Card, identity sized photographs are required while applying.