The Indian government has the top 5 small savings plans with the highest interest rates: PPF, NSC, SSY, etc.
1. National Pension Plan (NPS)
NPS is a voluntary retirement savings plan that provides returns that connect with the market. NP is open to all Indian citizens (including Indian citizens with unorganized departments). When retired, investors can withdraw part of the corpus and use the rest of their monthly pensions. It offers tax benefits under the terms of 80C and 80CCD (1B).
The solution is simple, voluntary, portable and flexible. It allows you to plan a financially safe retirement with systematic savings in a planned way. Currently, NPS provides 9% annual returns.
2. Public Provident Fund (PPF)
PPF is a government-backed long-term savings program with current interest rates of 7.1%. It provides tax-free returns in Section 80C and has a 15-year lock-up period. It is suitable for self-employed and paid individuals who want to accumulate retirement savings.
You can invest in your PPF account for at least 15 years and ultimately take advantage of any number of 5-year extensions to obtain a tax benefit up to Rs 1.5 lakh under Section 80C of the Income Tax Act and receive a tax exemption amount of the due tax.
3. SukanyaSamriddhi Yojana (SSY)
Sukanya Samriddhi Yojana (SSY) is a savings scheme supported by the Indian government to ensure the future of girls. Parents or guardians can open a savings account in the name of the girl, thereby saving for her education and marriage expenses. With attractive interest rates and tax benefits, this is a popular choice for parents to invest in their daughter’s future.
The account can be opened by the girl’s natural or legal guardian until she is 10 years old. Currently, the interest rate for Sukanya Samriddhi Yojana is 8.2%.
4. Savings Plan for the Elderly (SCSS)
The Elderly Savings Scheme (SCSS) is a government-backed scheme that helps retired individuals earn normal income. It offers good interest rates and tax benefits, making it a popular choice for seniors to ensure their financial future. Its interest rate is 8.2%.
Individuals over 60 years old, retired from Defense Services (50 years and older), and those who retire in pensions, VRS or special VRS (55 years and older) are eligible to open a SCSS account.
5. Post Office Monthly Income Plan (POMIS)
Post office monthly income plans, such as post office savings accounts, post office regular deposits, post office time deposits, are one of the highest income plans with an interest rate of 7.4%.
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