8 High Return Small Saving Schemes Offered by Banks now

High Return Small Saving Schemes Offered by Banks now-minHigh Return Small Saving Schemes Offered by Banks now

Until now, most of the small savings schemes were sold through post offices only. But, the central government has recently issued a notification that allows all public banks and top three private banks (HDFC bank, ICICI bank, and Axis bank) to accept deposits for various small savings schemes like National Savings Certificate (NSC), recurring deposits etc. This step was taken in an effort to encourage savings. Now, the investors are available with more outlets to plan their savings. Which are the high return small saving schemes offered by banks now? What are the features and interest rates of these high return small saving schemes? This article would touch upon some details.

Also Read: How to invest small savings and become Crorepati in our life?

What are Small Saving Schemes?

Household savings are a very important part of investment for any economy. Household savings are converted into investments through small saving schemes. Thus, it can be said that small saving schemes are designed to provide a safe and attractive investment options to the public in general and to mobilize resources as well. It helps to support the social security objectives at the same time. Many schemes like Sukanya Samriddhi Scheme, Senior Citizen Saving Fund, PPF are supporting social security of different sections.  These schemes were operated through post offices all over the country until now but now the government has authorized all the public sector banks and top three private sector banks to accept deposits under small saving scheme.   

What are the Small Saving Schemes which were sold by bank earlier?

Till last month, the banks were allowed to transact only in few small saving schemes like Public Provident Fund, Kisan Vikas Patra (KVP), Sukanya Samriddhi Account and Senior Citizen Savings Account.

What are the Small Saving Schemes which can be sold by Banks now?

Now, the Government has extended the services of banks and they will be accepting deposits under National Saving Scheme (NSC), recurring deposits and monthly income plan.  The government has authorized all the public sector banks for this arrangement. Amongst the private sector banks, only top three banks – ICICI Bank, HDFC Bank and Axis bank to offer these schemes to customers.

8 High Return Small Saving Schemes Offered by Banks now

Every investment scheme bears different rates of interest and maturity time to offer different financial goals of the investors. The following are the main features of the schemes offered by the banks now. It is to be noted that the Government has declared that the interest on small saving schemes will be revised on quarterly basis since April 1, 2016. The interest rates indicated here are for Oct-2017 to Dec-2017.

1)  7.8% Public Provident Fund (PPF)

PPF is one fo the best retirement tool or for saving for long term.

PPF will provide annual rate of interest at 7.8% and maturity in 15 years.

The minimum deposit is Rs. 500 per annum and maximum is Rs 150,000.

It is the best option when you want to plan for your child education or daughter marriage or for retirement purpose. It offers highest tax-free returns along with the income tax benefit under section 80C upto Rs 1.5 Lakhs.

If one invests in both their name and their spouse name for Rs 1.5 Lakhs each totaling to Rs 3 Lakhs per year for 15 years, the investment amount would be Rs 45 Lakhs, but the accumulated value along with interest would be over Rs 90 Lakhs.

Also Read: EPF Vs PPF Vs NPS – Which is the best investment option?   

2)  7.5% Kisan Vikas Patra (KVP)

Kisan Vikas patra offers interest rates of 7.5%.

The tenure of KVP is 115 months.

Your money would get doubled in 115 months under KVP.

You can invest as low as Rs 1,000 and no maximum limit.

There is no income tax exemption u/s 80C.

3)  8.3% Sukanya Samriddhi Account (SSA)

This scheme is originated for girl child only and it offers 8.3% interest annually.

The maturity amount is tax-free.

You can invest as low as Rs 1,000 and maximum of Rs 1.5 Lakhs.

The tenure of SSA is 21 years. However it can be withdrawn before that with some terms and conditions.

4)  8.3% Senior Citizen Saving Scheme

This is one fo the good Sr. Citizens saving scheme.

It also 8.3% interest rate per annum and interest is paid quarterly.

The maturity period is 5 years.

The minimum deposit is Rs. 1,000 and maximum is Rs. 15 Lakh.

5)  7.6% National Savings Time Deposit Scheme

This is like simple FD scheme.

Investment can be made for different time periods like 1 year, 2 year, 3 year and 5 year.

The interest varies accordingly ranging from 6.8% to 7.6%. The interest is calculated quarterly but payable annually.

The minimum amount for investment is Rs 200. There is no maximum limit.

6)  7.5% National Savings MIP (Monthly Income Plan)

This scheme is best for retired person as the interest is payable every month at the rate of 7.5% per annum.

One can invest minimum of Rs 1,500 and maximum of Rs 4.5 Lakhs. If it is join account, the max amount is Rs 9 Lakhs.

It becomes a source of regular income especially for investors like Senior Citizens who look for regular monthly income.

7)  7.1% National Savings RD (Recurring deposit)

It is like simple bank RD.

The minimum term period is 5 years with minimum deposit of Rs. 10 every month. There is no maximum limit.

The rate of interest is 7.1% per annum and is compounded quarterly.

A Rs.10 deposited for 5 years every month fetches Rs. 721. 

It can be continued for another 5 years on year-to-year basis. 

Also Read: Best Bank Recurring Deposit Rates in India

8)  7.8% National Saving Cerificate (NSC)

Rate of interest in NSC is 7.8%.

The minimum investment is Rs 100 and there is no maximum limit.

This option is ideal for those investors who want to take very minimum risk and planning to invest money for the purpose of saving tax.  Otherwise, one can invest in other high return tax saving options.   

Conclusion:  This is good part that Govt of India is allowing investors to invest in small saving schemes through banks instead of just at post office. This move would definitely help investors to invest in such schemes in easy way and it would reduce time too.  

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High Return Small Saving Schemes Offered by Banks now

Suresh KP


  1. Most of Public Sector Bank Branches authorised to accepts deposits under National Savings Schemes discourage prospective investors since it affects their Fixed Deposit Mobilisation.   Secondly, most of the bank branches says that they do not have enough manpower for marketing NS Schemes.  

  2. Hi Suresh

    I went to Axis and HDFC bank to enquire about the 8.3% senior citizen saving scheme, however the banks are unaware about any such scheme. The advised me that they will get back to me with an update, however i only received a call from the HDFC bank and the executive there was also unaware of the scheme.

    I tried to search for this on HDFC bank website, however could not find this. I need to get one opened for my parents as this fetch good returns.

    Request you to please advise me on this as the banks are unaware, only ICICI bank currently has this scheme as they were able to relate to my queries. We already have couple of accounts with the ICICI bank and would want to explore other banks.


    Amandeep Singh 

  3. As usual, good information and thank you.

    Please add information on high return and moderate risk tax saving options

  4. Thanks for the information…But not sure will Private Banks will allow Customers to utilize Government Savings Scheme instead of their FD.

  5. Hi, 

    thanks for the useful information. It would be great if you could also add tax treatment & post tax returns for each of the schemes.. 


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