Last updated: Feb 06, 2023 12:36 pm IST
Schemes launched by the government cater to various sectors of society.
Seniors Savings Scheme: Minimum deposit Rs 1000 multiple of this, maximum deposit 30 lakhs.
There are a number of savings schemes that are supported by the government and operate through various financial institutions in the country. Each scheme has specific features such as tenure, eligibility, deposit limits, and interest rates.
Schemes launched by the government cater to various sectors of society. Some savings schemes are for the elderly, some are for the welfare of women. There are also special schemes for farmers and employees.
Here is a list of ten government-supported schemes available at banks/post offices across the country.
1. National Savings Scheme (monthly income account)
- A minimum of 1000 rubles in a multiple of it. Maximum 9 lakh in one account and 15 lakh in joint account.
- Account expires after 5 years.
- A depositor may manage more than one account under this scheme, subject to a limit on the maximum amount that can be invested in a single or joint account.
- The account can be closed ahead of schedule after one year, but before the end of three years, with a deduction of 2% of the deposit. If the account is closed after three years, 1% of the deposit is withheld.
- Interest rate: (from January 1 to March 31, 2023) – 7.1%
2. National Savings Time Deposit Account
- Four categories of term deposits are available – 1 year, 2 years, 3 years and 5 years.
- The minimum deposit is 1000 rupees, then the amount is a multiple of 100 rupees.
- There is no maximum deposit limit.
- The account can be closed after six months. If deposits are withdrawn early after six months but up to one year, simple interest is paid at the POSA rate.
- Deposits on a 5-year term deposit are deductible in accordance with section 80-C of the Income Tax Law.
- Interest: (January 1 – March 31, 2023) – 6.60 (1 year), 6.80 (2 years), 6.90 (3 years) and 7% (5 years).
3. Seniors savings scheme
- The minimum deposit is Rs 1000 multiple of this, the maximum deposit is Rs 30 lakh.
- A person who is 60 years of age or older on the date the account is opened, or a person who is 55 years of age or older but less than 60 years of age and retired under a Retirement Plan, VRS or Special VRS, may open an account.
- Defense retirees (with the exception of civil defense employees) may open an account upon reaching the age of fifty, subject to other stipulated conditions.
- The depositor can open an account individually or jointly with a spouse.
- Interest is payable from the date of deposit until March 31/June 30/September 30/December 31 on the 1st business day of April/July/October/January, as the case may be, in the first case and thereafter interest is payable. on the 1st business day of April/July/October/January.
- The account can be closed after 5 years from the date of opening the account.
- The depositor can extend the account for another 3 years.
- Early closure is permitted subject to certain conditions.
- Deposits in SCSS are deductible under section 80-C of the Income Tax Law.
- Interest rate: (from January 1 to March 31, 2023) – 8.00%
4. National savings certificate (VIII issue)
- The minimum deposit is ₹ 1000 / – and then a multiple of ₹ 100.
- Account expires after 5 years
- There is no maximum deposit limit.
- An account for one holder can be opened by an adult for himself or on behalf of a minor.
- A single holder account can also be opened by a minor upon reaching the age of 10.
- Type A Joint Accounts can be opened by up to three adults, with a payout to both owners jointly and to the survivor.
- Type “B” Joint Accounts can be opened by up to three adults, with a payout to any of the survivors.
- The possibility of obtaining a loan secured by banks.
- Interest: (from January 1 to March 31, 2023) – 7%.
5. Scheme of the state reserve fund
- The minimum deposit is Rs 500 and the maximum deposit is Rs 1,50,000 during the financial year.
- The loan is granted from the 3rd financial year to the 6th financial year.
- Withdrawals are allowed every year from the 7th fiscal year.
- The account expires fifteen full financial years from the end of the year in which the account was opened.
- At the end of the term, the account can be renewed for any amount for a block of 5 years with further deposits.
- The account can be held indefinitely without further deposit after redemption at the prevailing interest rate.
- The amount in the PPF account is not subject to seizure by any order or court order.
- The deposit is deductible in accordance with Section 80-C of ITAct.
- Interest earned on the account is not subject to withholding tax in accordance with section -10 of the IT Act.
- Interest rate: (until March 31, 2023) – 7.1%
6. Account of Sukanya Samriddhi
- The minimum deposit is Rs 250 and the maximum deposit is 1.5 lakh in the financial year.
- The account can be opened in the name of a girl until she reaches the age of 10.
- Only one account can be opened in the girl’s name.
- Accounts can be opened at post offices and authorized banks.
- Withdrawals are permitted for higher education purposes of the account holder to cover tuition costs.
- The account can be closed early if the girl marries after she reaches 18 years of age.
- The account can be transferred anywhere in India from one post office/bank to another.
- The account expires after 21 years from the date the account was opened.
- The deposit is deductible in accordance with Section 80-C of ITAct.
- Interest earned on the account is not subject to withholding tax in accordance with section -10 of the IT Act.
- Interest rate: 7.6%
7. Mahila Samman Savings Certificate
- The Mahil Samman Savings Certificate Scheme is a new one-time small savings scheme by the Government of India announced in the 2023 budget.
- This will offer a deposit of up to 2 lakhs in the name of women or girls for a period of 2 years at a fixed interest rate of 7.5% with partial withdrawal option.
8. Kisan Vikas Patra
- Minimum 1000r, then a multiple of 100r.
- There is no maximum deposit limit.
- An account for one holder can be opened by an adult for himself or on behalf of a minor.
- A single holder account can also be opened by a minor upon reaching the age of 10.
- Type A Joint Accounts can be opened by up to three adults, with a payout to both owners jointly and to the survivor.
- Type “B” Joint Accounts can be opened by up to three adults, with a payout to any of the survivors.
- Accounts can be opened at post offices and authorized banks.
- KVP can be transferred from one person to another and from one post office to another.
- KVP can be cashed out after 2 and a half years from the date of investment at the following rates.
- Money doubles as it is redeemed.
- Interest rate: 7.2% (120 months)
9. Regular deposit account scheme
- In this scheme, you can deposit a minimum of Rs 100 per month with no set maximum limit.
- Advance deposits can be made at the choice of the depositor for 6 months or 12 months and receive a discount.
- The scheme bill matures in 5 years. Withdrawals of 50% of the existing balance are allowed one year after opening the account.
- The account can be closed early after 3 years with simple interest at the Post Office Savings Account (POSA) rate.
- Currently, the interest rate is 5.8% on RD mail.
10. Post Office Savings Account
- This scheme requires a minimum deposit of Rs 500 and there is no maximum deposit limit.
- A person may open an account in his own name individually or jointly with an adult. The account may be opened in the name of a minor.
- Also, a minor who has reached the age of 10 can open an account on his own.
- Interest on an account up to Rs 10,000 is deductible from income for the financial year in accordance with the Income Tax Law.
- The schemes offer an interest rate of 4 percent (until March 31, 2023)
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Namit Singh Sengar Namit is Senior Associate Editor of News18.com Business Vertical. With over five years of experience, he focuses on personal finance, brands, and economics….Read More