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Small Savings Schemes

PPF, SSY, NSC, SCSS, KVP — government-backed savings with guaranteed returns.

Small savings schemes are run by the Government of India through post offices and banks. They pay fixed interest (reset every quarter), come with sovereign guarantee, and several of them also give you tax breaks under Section 80C.

🌳PPF — Public Provident Fund

The most loved long-term saving tool in India. 15-year lock-in, ~7.1% p.a., fully tax-free (EEE).

  • Limit — ₹500 minimum, ₹1.5 lakh maximum per financial year.
  • Tax — Deposits qualify for 80C; interest and maturity are tax-free.
  • Liquidity — Partial withdrawal from year 7, loan from year 3.

👧SSY — Sukanya Samriddhi Yojana

For a girl child under 10. ~8.2% p.a., EEE tax status, matures at age 21.

  • Deposit — ₹250 to ₹1.5 lakh per year for the first 15 years.
  • Use — 50% can be withdrawn for higher education after age 18.

📜NSC, SCSS and KVP

Three more workhorses for different life stages.

  • NSC — 5-year lock-in, ~7.7% p.a., 80C deduction. Good safe parking.
  • SCSS — Senior Citizens (60+), 5-year tenure, ~8.2% p.a. paid quarterly. Up to ₹30 lakh.
  • KVP — Doubles your money in ~115 months. No tax benefit, but fully safe.

Micro Pro Tips

  • 📅
    Deposit before the 5th — PPF interest is calculated on the lowest balance between the 5th and month-end. Early deposits = more interest.
  • 🧓
    SCSS first for retirees — Higher than FD, quarterly income, government-backed. Open the account in the first year of retirement.
🌟 Small savings schemes are perfect for the 'safe core' of your portfolio — predictable, government-backed, and tax-friendly. Pair them with market-linked products for growth.