1. Summary
  2. SSA
  3. Types and returns of Small Savings Schemes


Small Savings Schemes are a group of savings instruments managed by the central government to encourage voters to avoid wasting frequently regardless of their age. They are common as they did not solely give returns that are typically more than bank fastened deposits but additionally with a sovereign guarantee and tax edges. Since 2016, the Finance Ministry has been reviewing the interest rates on tiny savings schemes every quarter. All deposits received below varied tiny savings schemes are pooled within the National tiny Savings Fund. The cash within the fund is employed by the central government to finance its business deficit. Currently allow us to take a glance at the various savings schemes.


  • SSA may be a tiny savings theme below that AN account is often opened for the lady kid at any time from her birth until the age of ten in post offices or authorized branches of banks.
  • The minimum deposit is Rs 1,000 and most are Rs 1,50,000 during a fiscal year. The deposit needs to be created until the tip of fourteen years from the year of the gap of the AN account.
  • The account is often closed once the lady turns twenty-one years or once the completion of eighteen years only if she is married.
  • the speed of interest is notified yearly by the govt., which can be combined. For 2014-15, the deposit can fetch AN interest of nine.1% every year.
  • The quantity deposited towards the Sukanya Samriddhi Account is deductible below Section 80C up to Rs 1.5 lakh.

Types and returns of Small Savings Schemes

The schemes are often classified below 3 heads – Post workplace deposits, savings certificates, and Social Security schemes.

Post office deposits

Under Post workplace Deposits we’ve got the savings deposit, continual deposit, and time deposits with one, two, three, and five-year maturities and therefore the monthly financial gain account. The bank account presently pays AN interest of four-dimensional per annum and may be opened singly or together with an initial investment of Rs. 500. The continual deposit that pays five.8% a year combined quarterly matures once sixty months from the date of the gap. It permits investors to avoid wasting every month with a minimum deposit of Rs100 per month. The post workplace time deposits are such as fastened deposits. A minimum investment of Rs 1,000 is needed to open a CD. The one-year, two-year, 3-year time deposits fetch a rate of interest of five.5% whereas the 5-year deposit earns 6.7% every year. Investments below the 5-year CD up to Rs 1.5 lakhs additional qualifies for profit below section 80C of revenue enhancement Act.

Monthly Income Account

Next, we’ve got the Monthly financial gain Account that matures 5 years from the date of the gap. This theme offers financial gain to the depositors within the style of monthly interest payments and therefore the current rate is 6.6 % every year. Most of the Rs. 4.50 are often deposited during a single account and Rs.9 lakhs in a Joint account. below Savings Certificates, we’ve got the National Savings Certificate and therefore the Kisan Vikas Patra.

The National Savings Certificate pays interest at a rate of 6.8% every year upon maturity once five years. The interest that’s attained is reinvested into the theme each year mechanically. The NSC additionally qualifies for tax savings below Section 80C of the revenue enhancement act. The Kisan Vikas Patra, which is hospitable to everybody, doubles your one-time investment at the tip of 124 months signifying a come of six.9% combined annually. The minimum investment quantity is Rs 1000 whereas there’s no higher limit.

Social security schemes

In the third head of Social Security schemes, there’s Public Provident Fund, Sukanya Samriddhi Account, and senior voters Savings theme. The general public Provident Fund may be a common saving possibility for long-run goals like retirement. It pays 7.1% a year and qualifies for a tax break below Section 80C of the revenue enhancement Act. Upon maturity of the account once fifteen years, it is often extended indefinitely in blocks of five years. The accumulated quantity and interest attained are exempt from tax at the time of withdrawal.

The Sukanya Samriddhi Account was launched in 2015 below the Beti Bachao Beti Padhao campaign completely for a woman kid. The account is often opened within the name of a woman kid below the age of ten years. The theme guarantees a come of seven.6% every year and is eligible for tax break below Section 80C of the revenue enhancement Act. The tenure of the deposit is twenty-one years from the date of the gap of the account and most of Rs 1.5 lakhs are often endowed during a year.

Senior Citizen bank account

And finally, the 5-year oldster bank account is often opened by anyone World Health Organization is over sixty years of age. It carries an interest of 7.4% every year owed quarterly and qualifies for Section 80C tax break.