Small Saving Schemes are investment options offered by the government to encourage individuals to save money and earn a reasonable rate of interest on their savings. These schemes are designed to be safe, accessible, and attractive to a wide range of investors, especially those with lower incomes or who are risk-averse.
The Rate of Interests on Top 10 Small Savings Schemes
The Rate of Interest on Top 10 Small Savings Schemes for the 1st Quarter of Financial Year 2025-26 i.e. for the period from 01.04.2025 to 30.06.2025 remains unchanged.
| Sr. | Small Savings Schemes | Rate of Interest (% p.a.) |
| 1. | Senior Citizen Savings Scheme (SCSS) | 8.2 % |
| 2. | Sukanya Samriddhi Yojana (SSY) | 8.2 % |
| 3. | National Savings Certificates (NSC) | 7.7 % |
| 4. | Mahila Samman Savings Certificate | 7.5 % |
| 5. | Kisan Vikas Patra (KVP) | 7.5 % |
| 6. | Post Office Monthly Income Scheme (MIS) | 7.4 % |
| 7. | Public Provident Fund (PPF) | 7.1 % |
| 8. | National Savings Time Deposit (TD) | 6.9% – 7.5% |
| 9. | National Savings Recurring Deposit (RD) | 6.7% |
| 10. | Post Office Savings Account (SB) | 4.0% |
As illustrated in the table above, the Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana provide the highest interest rate at 8.2%. The National Savings Certificate offers a rate of 7.7%, while the Kisan Vikas Patra (KVP) provides a rate of 7.5%.
Top 10 Small Saving Schemes in India
1. Senior Citizens Savings Scheme (SCSS)
Senior Citizens Savings Scheme (SCSS) is a savings scheme for individuals who are 60 years of age or older at the time of opening the account. An individual can open the account either individually or jointly with their spouse. Deposits made in SCSS are eligible for a deduction under Section 80C of the Income Tax Act.
Minimum deposit: ₹ 1,000/-
Maximum deposit: ₹ 30 lakhs
Age Requirement:
- Minimum of 60 years
- Minimum of 55 to 60 years for person retired under Superannuation, VRS, or Special VRS
- Minimum of 50 years for Retired Defense Services personnel (excluding civilian employees) meeting other specified conditions
Duration:
Matures on completion of 5 years
Note: ROI at the time of opening SCSS account will continue till maturity date as per scheme guideline.
2. Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana (SSY) is a savings scheme specifically designed for the girl child. The investments made in SSY are eligible for tax deductions under the Income Tax Act.
Minimum deposit: ₹ 250/-
Maximum deposit: ₹ 1.5 lakhs
Age Requirement:
- Girl child below the age of 10 years
Duration:
Matures on completion of 21 years, which can be extended until the girl child gets married
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3. National Savings Certificate (NSC)
NSC is a fixed-income investment scheme which offers a fixed rate of interest, compounded annually. The interest earned on NSC is also eligible for tax deductions under the Income Tax Act.
Minimum deposit: ₹ 1000/-
Maximum deposit: No Limit
Eligibility / Opening of Account:
- By a single or Joint Account
- A guardian on behalf of minor
- A minor above 10 years in his own name
Duration:
Matures on completion of 5 years
4. Mahila Samman Savings Certificate (MSSC)
The Ministry of Finance, through letter no. 141112019-NS-Part (1) dated 27.03.2025, has announced that the Mahila Samman Savings Certificate (MSSC) scheme will be discontinued after March 31, 2025. As per the prevailing guidelines and notifications, no new deposits will be accepted beyond this date. However, existing investors will continue earning 7.5% interest until maturity.
For those seeking alternative savings options, options like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Fixed Deposits (FDs), and Senior Citizens Savings Scheme (SCSS) offer varying interest rates and benefits.
The Mahila Samman Savings Certificate was a safe plan made especially for women and girls of all ages. It’s meant to encourage them to save and invest money.
Minimum deposit: ₹1000/-
Maximum deposit: ₹ 2 lakhs
Eligibility / Opening of Account:
- By a woman for herself
- By the guardian on behalf of a minor girl.
Duration:
Matures on completion of 2 years
5. Kisan Vikas Patra (KVP)
KVP is a savings scheme aimed at farmers and individuals from rural areas. It offers a fixed rate of interest. The interest earned on KVP is taxable, but the investment amount is doubled upon maturity.
Minimum deposit: ₹1000/-
Maximum deposit: No Limit
Eligibility / Opening of Account:
- Single Holder Type Account
- Joint A- Type Account – payable to all the account holders
- Joint B- Type Account – payable to any of the account holders
Duration:
115 months (9 Years 7 months)
6. Post Office Monthly Income Scheme (MIS)
The Post Office Monthly Income Scheme lets you invest a specific amount and get a fixed interest payment every month.
Minimum deposit: ₹ 1000/-
Maximum deposit:
₹ 9 lakh in Single account
₹ 15 lakh in Joint account
Eligibility / Opening of Account:
- a single adult
- Joint Account (up to 3 adults)
- a guardian on behalf of minor/ person of unsound mind
- a minor above 10 years in his own name
Duration:
Matures on completion of 5 years
7. Public Provident Fund (PPF)
PPF is a long-term investment scheme. It offers a fixed rate of interest, which is generally higher than the interest rates offered by banks. The investments made in PPF are eligible for tax deductions under the Income Tax Act, making it a tax-efficient investment option.
Minimum deposit: ₹ 500/-
Maximum deposit: ₹ 1,50,000/- per year.
Eligibility / Opening of Account:
- Any individual on his own
- On behalf of a minor of whom he is a guardian
- NRI’s / HUF are not eligible to open an account under this scheme.
- Joint account shall not be opened under this Scheme
Duration:
Matures on completion of 15 years, which can be extended in blocks of 5 years.
8. National Savings Time Deposit (TD / FD)
Post Office Time Deposit Account (TD)
Minimum deposit: ₹ 1000/-
Maximum deposit: No Limit
Eligibility / Opening of Account:
- A single adult
- Joint Account (up to 3 adults)
- A guardian on behalf of minor
- A minor above 10 years in his own name
Duration:
Matures on completion of 1 year, 2 year, 3 year, 5 year.
9. National Savings Recurring Deposit (RD)
5-Year Post Office Recurring Deposit Account (RD)
Minimum deposit: ₹ 100/- monthly
Maximum deposit: No Limit
Eligibility / Opening of Account:
- A single adult
- Joint Account (up to 3 adults)
- A guardian on behalf of minor
- A minor above 10 years in his own name
Duration:
Matures on completion of 5 years, which can be further extended for 5 years.
10. Post Office Savings Account (SB)
The Post Office Savings Account is a safe and reliable savings option offered by India Post, providing an interest rate of 4.0% per annum (subject to change). It allows easy withdrawals, making it ideal for small savers. The account can be opened individually or jointly at any post office across India.
Minimum deposit: ₹ 500/- for account opening
Maximum deposit: No Limit
Eligibility / Opening of Account:
- A single adult
- Joint Account (up to 3 adults)
- A guardian on behalf of minor
- A minor above 10 years in his own name
Facilities: Cheque book, Debit Card, Mobile banking
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Small saving schemes provide a secure and stable investment option for individuals looking to save money for various financial goals, such as retirement, education, or buying a house. They offer competitive interest rates, tax benefits, and flexibility in terms of investment amount and tenure, making them a popular choice among investors. However, it is essential to carefully evaluate the risks and returns associated with each scheme and consider factors like liquidity, tax implications, and investment goals before investing in small saving schemes.
