Best Investment Options – Small Saving Schemes in India



Small savings schemes in India are offered by the Indian Post Offices across the country which offer safe and it is an attractive investment option. Below are the major small saving schemes and their features.

 Post Office Monthly Income Schemes

  • Interest rate of 8.5% p.a payable monthly

  • Maturity period is 5 years.

  • No tax deduction at source (TDS).

  • No tax rebate is applicable.

 National Savings Certificates (NSC)

  • NSC VIII Issue (5 year) – Interest rate of 8.6% p.a

  • NSC IX Issue (10 year) – Interest rate of 8.9% p.a.

  • Minimum investment Rs. 100/-. No maximum limit.

  • No TDS

  • Investment up to Rs 1,00,000/- p.a. qualifies for Income Tax Rebate

 Public Provident Fund (PPF)

  • Interest rate of 8.8% p.a.

  • Minimum deposit is 500/- p.a.. Max Rs. 1,00,000/- p.a.

  • Duration 15 years

  • Investment up to Rs 1,00,000/- p.a. qualifies for Income Tax

  • Interest is tax-free.

  • Deposits can be made in lumpsum or in 12 installments but minimum of Rs.500 is mandatory in each financial year

  • Withdrawal is available from 6th year

Post Office Time deposit scheme

1 year, 2 year, 3 year and 5 year time deposits can be opened. Interest payable annually but compounded quarterly:

 Period Rate of Interest

  • 1 year – 8.2%

  • 2 years –  8.3%

  • 3 years – 8.4%

 Post Office Savings Account

  • Rate of interest 4.0% p.a.

  • Interest is tax Free

  • Cheque facility is available.


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Suresh KP

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