There are different kinds of Small Savings Schemes suitable for various segments of the population.

The Government of India have reduced the rate of interest for many of the Small Savings Scrips w.e.f. 01.04.2017 as follows: 

Instrument  Rate of Interest
w.e.f.  01.01.2017 to 31.03.2017
Rate of Interest
w.e.f.  01.04.2017 to 30.06.2017
Compounding Frequency *

Savings Deposit

4.0

4.0 Annually

1 Year Time Deposit

7.0

6.9 Quarterly

2 Year Time Deposit

7.1

7.0 Quarterly

3 Year Time Deposit

7.3

7.2 Quarterly

5Year Time Deposit

7.8

7.7 Quarterly

5 Year Recurring Deposit

7.3

7.2 Quarterly

5 Year Senior Citizens Savings Scheme

8.5

8.4 Quarterly and paid

5 Year Monthly Income Account Scheme

7.7

7.6 Monthly and paid

5 Year National Savings Certificate

8.0

7.9 Annually

Public Provident Fund Scheme

8.0

7.9 Annually

Kissan Vikas Patra (KVP)

7.7 (will mature in 112 months)

7.6 (will mature in 113 months) Annually

Sukanya Samriddhi Account Scheme

8.5

8.4 Annually
* No Change


MONTHLY SAVINGS OPTION:
PORD

REGULAR INCOME SCHEMES:
POMIS, SCSS

TAX BENEFIT SCHEMES:
  NSC/ PPF

 

OTHER SCHEMES:
POTD /POSA

     
SALIENT FEATURES - SMALL SAVINGS SCHEMES
(Interest rate with effect from 01.10.2016)

Sl.No. Name of the Scheme Interest cum features
1 Post Office Monthly Income Scheme (POMIS) For an investment of Rs.1,20,000/- then Rs.770/- will be paid per month for 5 years.

At the end of 5th year
Total amount - Rs.166200
monthly interest in 5 years - Rs. 46200

Amount repaid on maturity - Rs. 120000

Rate of interest 7.7 % (7.6 % w.e.f 1.4.17)

2 Post Office Recurring Deposit Scheme (PORD) Monthly investment of Rs.100/- for 60 months

Deposit amount ( 60 X 10) : Rs.6000

Amount payable on maturity : Rs. 7250.50

Rate of interest : 7.3 % (7.2 % w.e.f 1.4.17)

3 5 Year National Savings Certificate (NSC) VIII issue Five years IT benefit under section 80 C

Though lock in period is for 5 years, the mortgage facility is allowed.

Deposit of Rs.10000/-, the maturity after 5 years is Rs.14,693/-

Rate of interest 8.0 % (7.9 % w.e.f 1.4.17)

4 Post Office Time Deposit (POTD)  
  1 year Deposit of Rs.10000-, the maturity value after 1 year is Rs.10700/-

Rate of interest 7.0 % (6.9 % w.e.f 1.4.17)

  2 year Deposit of Rs.10000-, the maturity after 2 years is Rs.11,470/-

Rate of interest 7.1 % (7.0 % w.e.f 1.4.17)

  3 year Deposit of Rs.10000-, the maturity after 3 years is Rs.12,354/-

Rate of interest 7.3 % (7.2 % w.e.f 1.4.17)

  5 year Deposit of Rs.10000/-, the maturity after 5 years is Rs.14,560/-

Rate of interest : 7.8 % (7.7 % w.e.f 1.4.17)

5 15 Year Public Provident Fund Scheme (PPF) Minimum limit of Deposit per year Rs. 500/-
Maximum limit of deposit per year Rs. 1,50,000/-

1. IT benefit under Sec. 80C
2. Exemption from wealth tax
3. Exemption from court attachment
4. Flexible to get loan after 3 years part of the amount can be withdrawn after 7 years.
5. Rate of interest 8.0 % (7.9 % w.e.f 1.4.17)

6 Senior Citizen's Savings Scheme (SCSS) 1. IT benefit under Sec. 80C
2. Deposit of 1,00,000/- then Rs.2125/- will be paid once in three months for 5 years.
3. Scheme for aged people Interest paid quarterly.
4. High rate of interest 8.5 % only (8.4 % w.e.f 1.4.17)
7 Kissan Vikas Patra (KVP) Deposit doubles in 9 year and 4 months

Withdrawal facility available after 2 years.

Rate of interest 7.7 % (7.6 % w.e.f 1.4.17)

8 Selvamagal Semippu Thittam(SSA) Limit of Deposit Rs.500 to 1,50,000/-

The above may be paid with in the year at any time

Maturity period 21 years

Girl child from New born baby to 10 years

Account can be opened in the name of female child upto age of 10 years.

50% of the deposit amount can be withdrawn if the female child reached the age of 18 years for the purpose of Higher education or marriage.

IT benefit under Sec. 80C

Rate of interest 8.50 % (8.4 % w.e.f 1.4.17)

9 Post Office Savings Account (POSA) ATM and Net Banking facility available
Rate of interest 4%



Some Special Advantages of Small Savings Schemes

Most of the Schemes have facilities for nomination and in case of death of depositor his / her nominee (s) can easily withdraw the deposits with interest.

Certificate / Pass Book can be transferred to any other Post Office

Deposits can be made through Government appointed authorized male / female agent, who accept money / cheque / drafts against proper receipt.

 
Pay Roll Savings Scheme 

Under this scheme, any monthly salaried person can voluntarily authorise his appointing authority or employer to deduct monthly contributions from his salary and to remit into anyone of the savings schemes like Post Office Recurring Deposit, Post Office Time Deposit, National Savings Certificate (VIII issue) and Public Provident Fund Scheme. The group leader appointed in each organization for collection purpose is paid by the PO which can be deducted at commission for his service who implements the scheme in the respective concern. 

 

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