Savings schemes
Fixed, government-backed returns, reset every quarter by the Ministry of Finance.
| Scheme | Pays / gives | For |
|---|---|---|
| Public Provident FundAnyone saving for 15 years or more who wants tax-free, guaranteed growth. | 7.1% a year, tax-free | Anyone saving for 15 years or more who wants tax-free, guaranteed growth. |
| Sukanya Samriddhi YojanaParents of a girl under 10, saving for her education or marriage. | 8.2% a year, tax-free | Parents of a girl under 10, saving for her education or marriage. |
| Senior Citizens’ Savings SchemePeople aged 60 or more who want a regular income from a lump sum. | 8.2% a year, paid quarterly | People aged 60 or more who want a regular income from a lump sum. |
| Post Office Monthly Income SchemeAnyone who wants a fixed monthly income from a lump sum for 5 years. | 7.4% a year, paid monthly | Anyone who wants a fixed monthly income from a lump sum for 5 years. |
| National Savings CertificateTaxpayers in the old regime who want a fixed 5-year deposit that counts for 80C. | 7.7% a year for 5 years | Taxpayers in the old regime who want a fixed 5-year deposit that counts for 80C. |
| Kisan Vikas PatraAnyone who wants to double a lump sum with a government guarantee. | Doubles in 115 months (7.5%) | Anyone who wants to double a lump sum with a government guarantee. |
| Post Office Time DepositAnyone who wants a fixed deposit for 1 to 5 years backed by the government. | 6.9% to 7.5% a year | Anyone who wants a fixed deposit for 1 to 5 years backed by the government. |
| Post Office Recurring DepositAnyone who wants to save a fixed sum every month, from ₹100. | 6.7% a year for 5 years | Anyone who wants to save a fixed sum every month, from ₹100. |
Pension and retirement
Money set aside from your working years for an income after 60.
| Scheme | Pays / gives | For |
|---|---|---|
| National Pension SystemAnyone aged 18 to 70 building a retirement corpus, salaried or self-employed. | Market-linked, extra ₹50,000 deduction | Anyone aged 18 to 70 building a retirement corpus, salaried or self-employed. |
| Atal Pension YojanaWorkers aged 18 to 40 who do not pay income tax and want a guaranteed pension. | ₹1,000 to ₹5,000 a month from 60 | Workers aged 18 to 40 who do not pay income tax and want a guaranteed pension. |
| Employees’ Provident FundSalaried employees of firms with 20 or more staff, and their employers. | 8.25% a year | Salaried employees of firms with 20 or more staff, and their employers. |
Insurance
Life and accident cover for a few hundred rupees a year, through your bank.
| Scheme | Pays / gives | For |
|---|---|---|
| Pradhan Mantri Jeevan Jyoti Bima YojanaBank or post office account holders aged 18 to 50. | ₹2 lakh life cover for ₹436 a year | Bank or post office account holders aged 18 to 50. |
| Pradhan Mantri Suraksha Bima YojanaBank or post office account holders aged 18 to 70. | ₹2 lakh accident cover for ₹20 a year | Bank or post office account holders aged 18 to 70. |
Farmers and banking access
Direct cash support and basic bank accounts for those left out.
| Scheme | Pays / gives | For |
|---|---|---|
| PM Kisan Samman NidhiFarmer families who own cultivable land, with some exclusions. | ₹6,000 a year in 3 instalments | Farmer families who own cultivable land, with some exclusions. |
| Pradhan Mantri Jan Dhan YojanaAnyone without a bank account, aged 10 or more. | Zero-balance account, ₹2 lakh accident cover | Anyone without a bank account, aged 10 or more. |
Which scheme for which goal
- Long-term, tax-free savings: PPF (7.1%), and VPF (8.25%) if you are salaried.
- A daughter's education or marriage: Sukanya Samriddhi (8.2%).
- Income after retirement: SCSS (8.2%, quarterly), then the Monthly Income Scheme (7.4%, monthly).
- A pension: NPS for anyone, or Atal Pension Yojana for a guaranteed ₹1,000–₹5,000 if you do not pay income tax.
- A fixed lump-sum deposit: the post office FD (6.9–7.5%), NSC (7.7%) or KVP (7.5%).
- Saving a little every month: the post office RD (6.7%), from ₹100.
- Cheap insurance for the family: PMJJBY (₹436) and PMSBY (₹20) together.
Tax at a glance
| Scheme | Deposit deduction (old regime) | Interest / payout |
|---|---|---|
| PPF | 80C | Tax-free |
| Sukanya Samriddhi | 80C | Tax-free |
| EPF / VPF | 80C | Tax-free up to ₹2.5 lakh of contributions a year |
| SCSS | 80C | Taxable |
| NSC | 80C | Taxable (years 1–4 also count for 80C) |
| 5-year time deposit | 80C | Taxable |
| NPS | 80C + ₹50,000 extra | 60% of corpus tax-free at exit |
| KVP, MIS, RD | None | Taxable |
Section 80C is Section 123 of the Income-tax Act, 2025, with the same ₹1.5 lakh limit. The new regime allows none of these deductions, but tax-free interest stays tax-free under both regimes.
Where to open these schemes
Every small savings scheme (PPF, SSY, SCSS, MIS, NSC, KVP, time deposits and RD) can be opened at any post office; most can also be opened at public sector banks and large private banks. NPS opens online through the eNPS sites or at a bank. Atal Pension Yojana, PMJJBY and PMSBY are joined through the bank or post office where you hold a savings account, and PM Kisan through the PM Kisan portal or a Common Service Centre. Compare current rates on post office interest rates and bank FD rates.
Frequently asked questions
Which government scheme gives the highest interest?
Sukanya Samriddhi Yojana and the Senior Citizens’ Savings Scheme, at 8.2% a year for October–December 2026. Among schemes open to everyone, NSC (7.7%) and the 5-year post office time deposit (7.5%) pay the most. EPF pays 8.25%, but only salaried employees can join.
Which government schemes are tax-free?
PPF and Sukanya Samriddhi are tax-free at every stage: the deposit counts for Section 80C under the old regime, and the interest and maturity amount are tax-free under both regimes. EPF is tax-free within limits.
How often do government scheme interest rates change?
The Ministry of Finance reviews small savings rates every quarter. PPF and SSY follow the current rate on your whole balance; SCSS, MIS, NSC, KVP, time deposits and RD keep the rate they were opened at. EPFO declares the EPF rate once a year.
Which scheme is best for a monthly income?
The Post Office Monthly Income Scheme pays 7.4% every month, up to ₹9 lakh (₹15 lakh joint). If you are 60 or older, SCSS pays 8.2% every quarter on up to ₹30 lakh.
Which government insurance schemes can I join through my bank?
PMJJBY gives ₹2 lakh of life cover for ₹436 a year (ages 18–50), and PMSBY ₹2 lakh of accident cover for ₹20 a year (ages 18–70). Both are auto-debited from a savings account.
Sources
- Department of Economic Affairs – small savings interest rates
- National Savings Institute – scheme details
- PFRDA – NPS and Atal Pension Yojana
- EPFO
- Jan Suraksha portal – PMJJBY and PMSBY
- PM-KISAN portal
Last checked on 6 October 2026. Small savings rates are reviewed every quarter; we update these pages when new rates are notified.