Small savings schemes, also known as government savings schemes or post office schemes, are initiatives designed to promote savings among people. These schemes are government-backed, making them extremely low-risk. Typically, they offer higher interest rates compared to fixed deposits (FDs). The government reviews and sets the interest rates for these schemes every quarter. Many of these schemes also provide tax benefits to investors.

Best Interest Rates Among Small Savings Schemes

Among the 13 small savings schemes, the Sukanya Samriddhi Account offers the highest interest rate at 8.2%. The Senior Citizen Savings Scheme also provides an attractive interest rate of 8.2%. On the other hand, the Post Office Savings Account offers the lowest interest rate at 4%. The National Savings Certificate has an interest rate of 7.7%. Other notable schemes include the Mahila Samman Saving Certificate, Kisan Vikas Patra, and the 5-Year TD, all offering an interest rate of 7.5%. The Monthly Income Account Scheme offers a 7.4% interest rate, while the 3-Year TD and Public Provident Fund (PPF) schemes offer 7.1%. The 2-Year TD gives a 7% interest rate, and the 1-Year TD offers 6.9%. The 5-Year RD scheme has an interest rate of 6.7%.

Current Interest Rates for Small Savings Schemes:

Small Savings Scheme	Interest Rate
Post Office Savings Account	4%
1-Year TD	6.9%
2-Year TD	7%
3-Year TD	7.1%
5-Year TD	7.5%
5-Year RD Scheme	6.7%
Senior Citizen Savings Scheme	8.2%
Monthly Income Account	7.4%
National Savings Certificate	7.7%
PPF Scheme	7.1%
Kisan Vikas Patra	7.5%
Mahila Samman Saving Certificate	7.5%
Sukanya Samriddhi Account	8.2%

Consider Inflation When Investing

Investors should always consider inflation when making investment decisions. Choose investment options that offer returns higher than the inflation rate. If you invest in options that yield returns equal to or less than the inflation rate, the value of your invested money will decrease over time.