Saving Schemes List:
Types, Interest Rates & Features

List of Savings Schemes

Below is a comprehensive comparison of all major savings schemes in India — covering minimum deposit, tax deduction eligibility, and senior citizen availability:

Post Office Savings Account

The Post Office Savings Account is one of the oldest and most trusted savings instruments in India, operated by the Department of Posts under the Ministry of Communications. It provides a safe, reliable, and government-guaranteed option for individuals who want to park their money with minimal risk while earning a stable interest rate.

Key Features:

• Interest Rate: 4% per annum (calculated on minimum balance from 10th to end of month)
• Minimum Balance: ₹500 (without cheque book), ₹500 (with cheque book)
• No lock-in period — withdraw anytime
• Tax Deduction: No deduction under Section 80C
• TDS applicable if interest exceeds ₹10,000 per year
• Nomination facility available
• Joint account allowed (up to 3 persons)
• Available at all post offices across India
• Passbook provided for all transactions
• ATM/debit card facility available

Post Office Recurring Deposit Scheme

The Post Office Recurring Deposit (RD) scheme encourages small, regular savings by allowing depositors to invest a fixed amount every month for a tenure of 5 years. This scheme is ideal for salaried individuals and students who wish to build a corpus through disciplined monthly savings.

Key Features:

• Tenure: 5 years (60 monthly instalments)
• Interest Rate: 6.7% per annum (compounded quarterly)
• Minimum Deposit: ₹100 per month (no maximum limit)
• Tax Deduction: Not available under Section 80C
• Premature withdrawal allowed after completion of 3 years
• Rebate on advance deposits (6 months or more in advance)
• Loan facility: Up to 50% of balance after 12 instalments
• Account can be transferred from one post office to another
• Nomination facility available
• Joint account allowed

Post Office Monthly Income Scheme (POMIS)

The Post Office Monthly Income Scheme (POMIS) is a government savings scheme that provides a regular monthly income to investors. It is especially suitable for retirees and conservative investors who want a steady income stream without taking on unknown risk. The scheme provides guaranteed monthly payouts from the post office.

Key Features:

• Interest Rate: 7.4% per annum (paid monthly)
• Minimum Investment: ₹1,000 | Maximum: ₹9 lakh (single account), ₹15 lakh (joint account)
• Tenure: 5 years
• Tax Deduction: Not available under Section 80C
• Monthly interest is directly credited to the linked savings account
• Option to extend by another 5 years after maturity
• Premature closure allowed after 1 year (with penalty)
• 2% penalty if closed between 1–3 years; 1% penalty if closed after 3 years
• Nomination facility available
• Can be transferred between post offices

Post Office Time Deposit

Post Office Time Deposit (TD) is similar to a fixed deposit offered by banks but backed by the Government of India, making it completely risk-free. It offers flexible tenure options from 1 to 5 years with competitive interest rates, and the 5-year TD qualifies for tax deduction under Section 80C.

Interest Rates (2025):

Key Features:

• Minimum Deposit: ₹200 (no maximum limit)
• Interest compounded quarterly but paid annually
• 5-Year TD eligible for tax deduction under Section 80C
• Premature withdrawal allowed after 6 months with reduced interest
• Nomination facility available
• Can be transferred between post offices

Kisan Vikas Patra (KVP)

Kisan Vikas Patra (KVP) is a popular government savings instrument that effectively doubles your invested amount over a fixed period. Originally designed for farmers, KVP is now available to all Indian citizens. It is a simple, secure, and reliable investment that guarantees to double your money at maturity without unknown market risk.

Key Features:

• Interest Rate: 7.5% per annum (compounded annually)
• Minimum Investment: ₹1,000 | No Maximum Limit
• Maturity Period: 115 months (9 years 7 months) — investment doubles at maturity
• Tax Deduction: Not available under Section 80C
• No TDS on maturity
• Available in denominations of ₹1,000, ₹5,000, ₹10,000, and ₹50,000
• Premature encashment allowed after 2.5 years
• Nomination and transfer facility available
• Can be pledged as security for loans from banks
• Available at all post offices and select banks

Public Provident Fund (PPF)

The Public Provident Fund (PPF) is one of the most popular long-term tax-saving investment options backed by the Government of India. It offers the unique triple tax benefit (EEE — Exempt-Exempt-Exempt), meaning the investment, the interest earned, and the maturity amount are all exempt from tax. PPF is ideal for those looking for safe, long-term wealth creation combined with maximum tax savings.

Key Features:

• Interest Rate: 7.1% per annum (compounded annually)
• Minimum Deposit: ₹500 per year | Maximum: ₹1.5 lakh per year
• Tenure: 15 years (extendable in blocks of 5 years)
• Tax Deduction: Yes — eligible under Section 80C (up to ₹1.5 lakh)
• EEE (Exempt-Exempt-Exempt) — fully tax-free at all stages
• Partial withdrawal allowed from 7th year onwards
• Loan facility available from 3rd to 6th year
• Account cannot be closed before 15 years (except in special circumstances)
• Can be opened at post offices, SBI, HDFC Bank, ICICI Bank, and other authorised banks
• NRIs are not eligible to open new PPF accounts

Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) is a flagship government savings scheme launched under the "Beti Bachao Beti Padhao" campaign. It is specifically designed for the financial security of the girl child. The scheme offers the highest interest rate among all Post Office savings schemes and comes with triple tax exemption (EEE), making it the best investment option for securing a girl child's future — for education, marriage, or unknown major life goal.

Key Features:

• Interest Rate: 8.2% per annum (highest among all small savings schemes)
• Minimum Deposit: ₹250 per year | Maximum: ₹1.5 lakh per year
• Eligibility: Account can be opened for a girl child below 10 years of age
• Account matures 21 years after opening (or at marriage after age 18)
• Tax Deduction: Yes — eligible under Section 80C (up to ₹1.5 lakh)
• EEE (Exempt-Exempt-Exempt) — fully tax-free
• Partial withdrawal of 50% allowed after the girl turns 18 (for education)
• A family can open a maximum of 2 SSY accounts (one per girl child)
• Account can be opened at post offices and authorised bank branches
• Premature closure allowed in case of life-threatening illness or death of account holder

National Savings Certificate (NSC)

National Savings Certificate (NSC) is a fixed-income investment scheme offered by the Government of India through post offices across the country. NSC is a trusted savings instrument for risk-averse investors who want guaranteed returns along with tax benefits. The interest earned is automatically reinvested each year and qualifies for deduction under Section 80C.

Key Features:

• Interest Rate: 7.7% per annum (compounded annually but paid at maturity)
• Minimum Investment: ₹1,000 | No Maximum Limit
• Tenure: 5 years
• Tax Deduction: Yes — eligible under Section 80C (up to ₹1.5 lakh)
• Interest is reinvested and also qualifies as 80C deduction each year (except last year)
• No TDS on interest earned
• Premature encashment not allowed (except on death of holder or court order)
• Can be pledged as collateral for loans from banks
• Nomination facility available
• Transfer from one person to another allowed only once

ELSS & Tax Saving Fixed Deposits

Equity Linked Savings Schemes (ELSS) are a type of mutual fund that qualifies for tax deduction under Section 80C. They offer the shortest lock-in period of just 3 years among all 80C instruments, along with the potential for higher market-linked returns.

Tax Saving Fixed Deposits are a safer alternative with a 5-year lock-in period and fixed returns. They are available at major banks including SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Bank of Baroda. Deduction available under Section 80C.

National Pension System (NPS)

The National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It is designed to enable subscribers to build a pension corpus during their working years. NPS offers market-linked returns with an additional exclusive tax benefit of ₹50,000 under Section 80CCD(1B) over and above the ₹1.5 lakh limit under Section 80C.

Key Features:

• Returns: Market-linked (historically 8–10% p.a.)
• Minimum Contribution: ₹500 per contribution (Tier I), ₹250 (Tier II)
• 2 Account Types: Tier I (mandatory, pension-oriented), Tier II (voluntary, flexible)
• Tax Deduction: Up to ₹1.5 lakh under Section 80C + extra ₹50,000 under 80CCD(1B)
• Total maximum tax benefit: ₹2 lakh per year
• On retirement: At least 40% must be used to buy an annuity (pension)
• Remaining 60% can be withdrawn as lump sum (fully tax-free)
• Partial withdrawal allowed after 3 years for specific purposes
• Available to all Indian citizens aged 18–70 years
• Low fund management charges (0.01% – 0.09%)

Tax Saving FDs — Interest Rates (2025)

Tax Saving Fixed Deposits (FDs) with a 5-year lock-in period are offered by major banks under Section 80C. Compare current rates from top banks below:

Rates are indicative and subject to change. Always check with the respective bank for the latest rates.

Senior Citizens Savings Scheme (SCSS)

The Senior Citizens Savings Scheme (SCSS) is a government-backed savings scheme exclusively designed for citizens above 60 years of age. It offers one of the highest guaranteed returns among all small savings schemes with the security of a government-backed investment. SCSS provides quarterly interest payouts, making it an excellent source of regular income for retired senior citizens.

Key Features:

• Interest Rate: 8.2% per annum (paid quarterly — highest guaranteed rate in unknown savings scheme)
• Minimum Investment: ₹1,000 | Maximum: ₹30 lakh (enhanced from ₹15 lakh)
• Tenure: 5 years (extendable by 3 years)
• Eligibility: Indian citizens aged 60 years or above; 55–60 years for VRS/superannuation retirees
• Tax Deduction: Yes — eligible under Section 80C (up to ₹1.5 lakh)
• TDS applicable if interest exceeds ₹50,000 per year
• Quarterly interest payouts (not compounding)
• Premature closure allowed after 1 year (with penalty)
• 1.5% penalty on closing between 1–2 years; 1% penalty after 2 years
• Nomination facility available; joint account with spouse allowed
• Available at all post offices and authorised bank branches

Unit Linked Insurance Plan (ULIP)

A Unit Linked Insurance Plan (ULIP) is a unique financial product that combines the benefits of life insurance and investment in a single integrated plan. A portion of the premium is used to provide life insurance coverage while the rest is invested in market-linked funds (equity, debt, or balanced). ULIPs offer flexibility to switch between funds and provide tax benefits under Section 80C.

Key Features:

• Minimum Premium: ₹1,500/month or ₹18,000/year (varies by insurer)
• Lock-in Period: 5 years (mandatory)
• Returns: Market-linked — depends on fund performance (equity/debt/hybrid)
• Dual benefit: Life insurance protection + wealth creation through market investments
• Tax Deduction: Yes — eligible under Section 80C (up to ₹1.5 lakh)
• Maturity proceeds are tax-free under Section 10(10D) (subject to conditions)
• Fund switching: Can switch between equity and debt funds without tax impact
• Partial withdrawal allowed after 5-year lock-in
• Top-up facility to invest additional amounts as and when needed
• Sum assured: At least 10x annual premium

Mahila Samman Bachat Patra

Mahila Samman Bachat Patra is a one-time new small savings scheme introduced by the Government of India in Budget 2023. It is exclusively available to women and girl children, offering an attractive fixed interest rate with flexible partial withdrawal options. This scheme was introduced as a special initiative for women's financial empowerment during India's 75th year of independence (Azadi Ka Amrit Mahotsav).

Key Features:

• Interest Rate: 7.5% per annum (quarterly compounding)
• Minimum Deposit: ₹1,000 | Maximum: ₹2 lakh
• Tenure: 2 years (from date of deposit)
• Availability: April 2023 – March 2025 (limited scheme)
• Eligible: Women/girls of all age groups (guardian can operate for minor girl)
• Tax Deduction: No deduction under Section 80C
• Partial withdrawal: Up to 40% of balance after 1 year
• Available at post offices across India
• Nomination facility available
• Account can be prematurely closed on specific grounds after 6 months

Aadhaar and PAN Card: Mandatory for Post Office Savings Schemes

As per government regulations, Aadhaar card is now mandatory for opening and operating unknown Post Office savings scheme account. Additionally, a PAN card is required for transactions above ₹50,000.

Aadhaar requirements for post office savings accounts:

• Aadhaar number/biometric verification is mandatory for all new accounts
• Existing account holders must link Aadhaar within the prescribed time limit
• Aadhaar required for all post office saving schemes: PPF, NSC, SCSS, KVP, POMIS, RD, TD
• Non-linkage of Aadhaar may lead to freezing of account
• OTP-based or biometric verification accepted at post office counters

PAN requirements for post office savings schemes:

• PAN card is mandatory for deposits of ₹50,000 or more in a single transaction
• PAN required for aggregate deposits exceeding ₹5 lakh in a financial year
• PAN is mandatory for SCSS (due to high investment limit of ₹30 lakh)
• Form 60/61 can be submitted if PAN is not available (for specific cases)
• TDS is deducted at 20% if PAN is not provided where applicable

Frequently Asked Questions