Ultra-Safe Savings Schemes of the Central Government

In times like Covid-19 crisis, when financial markets and their future looks uncertain, we look for safe ways to keep our money. In such pursuit, we tend to trade the growth of money for the safety of our hard-earned money. And when everything in the world is uncertain in its period and its outcome, the safety of capital must be the only criteria to choose scheme or instruments of investment or deposit.

In keeping with these principles, finbingo.com has brought together vital features of various small savings schemes of the Government which are ultra-safe to keep your money. These schemes are re-launched in December 2019, with certain small modifications through different notifications. All these schemes are good to deposit funds earmarked for certain non-negotiable responsibilities like children’s education, sustenance in emergencies, or family exigencies if any. After all, having some money in such safe schemes gives you a mental peace in uncertain times.

Small Savings Schemes  –  Vital Features**

 Scheme Rate of Interest Maturity Period (Years) Investment Permissible (INR) Investment Permissible (INR) Tax Deduction on Deposits Interest income taxed? Maturity Value of INR 1 lakh
      Minimum Maximum      
Sukanya Samriddhi Scheme # 8.4 21 250 1,50,000 Yes Not taxed 5,91,203##
Public Provident Fund 7.1 15 500 1,50,000 Yes Not taxed 2,90,701***
Kisan Vikas Patra 7.6 9.5 1,000 Unlimited No Taxable. Senior citizens can claim deduction till Rs. 50000/- 2,00,000
Senior Citizen Saving Scheme@ 8.6 5 1,000 15,00,000 Yes Taxable. Senior citizens can claim deduction till Rs. 50000/- 1,43,000
NSC VIII Issue 7.9 5 1,000 Unlimited Yes Taxable. Senior citizens can claim deduction till Rs. 50000/- 1,46,254
Post Office Saving Scheme 4% No definite period 500 Unlimited No Taxable. Senior citizens can claim deduction till Rs. 50000/- NA
National Savings (Monthly Income Account) Scheme 7.6% 5 1,000

4,50,000 or

9,00,000 in Joint Account

No Taxable. Senior citizens can claim deduction till Rs. 50000/- 1,38,000
National Savings Time Deposit Scheme 6.9% (7.7% for 5 yrs) 1 to 5 1,000 Unlimited No Taxable. Senior citizens can claim deduction till Rs. 50000/- 1,39,626
National Savings Recurring Deposit Scheme 7.2% 5 100 Unlimited No Taxable. Senior citizens can claim deduction till Rs. 50000/-. 1,20,516

**Since, safety of the deposits is the only criteria, one should choose the scheme as per his convenience of earmarked use and not the growth prospects. Therefore, finbingo.com has not rated these schemes for recommendations.

# This scheme account can ONLY be opened in the name of a girl child

@ This scheme account can be opened only by the Senior citizens or retired persons

*** This is calculated after considering deposit of Rs.10000/ per year for 15 years period

## This is calculated after assuming deposit of Rs.12000/ year for 15 years