Best Small Saving Schemes India 2024

Sukanya Samriddhi Yojana (SSY)

Highest interest rate (8.2% currently), tax-free returns at maturity, good for girl childs future. With the minimum investment of Rs 250 per month, long lock-in period of 21 years.

Public Provident Fund (PPF)

With attractive interest rate (7.1% currently), tax-free returns at maturity, good for long-term wealth creation. Lock-in period of 15 years, limited annual contribution (Rs 1.5 lakh per year).

Recurring Deposit Account (RD)

Regular savings habit, fixed interest rate for the chosen term, premature withdrawal with penalty. Lower interest rate than PPF or SSY, limited tenures (up to 10 years).

National Savings Certificate (NSC)

Good interest rate for medium-term savings (6.8% currently), tax-free maturity proceeds if reinvested in NSC. However, it does not have liquidity until maturity, premature withdrawal with penalty.

Kisan Vikas Patra (KVP)

Attractive interest rate for short-term savings (6.9% currently), doubles maturity amount in 8 years 7 months. However, it does not give tax benefit, premature withdrawal with penalty.

Senior Citizen Savings Scheme (SCSS)

Highest interest rate among senior citizen schemes (7.6% currently), fixed tenure of 5 years, tax-free interest up to Rs 1.5 lakh per year. Limited investment window (April 1 to June 30 each year), premature withdrawal with penalty.

Remember

It is always advisable to consult with a financial advisor before making any investment decisions. They can help you assess your risk appetite and choose the right scheme for your needs.