Indian government backed savings scheme
Learn what are the savings scheme that is backed by Indian government
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7/11/20262 min read
Indian government-backed savings programmes include PPF, SCSS, SSY, NSC, KVP, post office deposits, RBI floating rate bonds, NPS, and APY, with interest rates ranging from 7% to 8.2% in 2026.
Public Provident Fund (PPF)
Who can join: Any Indian resident (min age 18; minors through guardian).
Tenure: 15 years (can be extended).
Interest: Around 7.1% p.a. in 2026 (rates change quarterly).
Limits: Min ₹500/year, max ₹1.5 lakh/year.
Tax: EEE scheme – contribution, interest and maturity all tax-free; contribution under Section 80C.
Senior Citizens Savings Schemes (SCSS)
Who can join: Individuals aged 60+ (or 55+ if retired with certain conditions).
Tenure: 5 years (extendable by 3 more years).
Interest: About 8.2% p.a. in 2026.
Limits: Min ₹1,000, max ₹30 lakh.
Tax: Interest is taxable; contribution under 80C; good for regular retirement income.
Sukanya Samriddhi Yojna (SSY)
Who can join: Parents/guardians for a girl child below 10 years (one account per girl, max two girls in a family).
Tenure: 21 years from account opening.
Interest: Around 8.2% p.a. in 2026.
Limits: Min ₹250, max ₹1.5 lakh/year.
Tax: EEE – fully tax-free; contribution under 80C.
National Savings Certificate (NSC)
Who can join: Any Indian resident (individuals, minors via guardian).
Tenure: 5 years or 10 years.
Interest: About 7.7% p.a. in 2026.
Limits: Min ₹1,000, no upper limit.
Tax: Interest is taxable but reinvested; contribution under 80C; available at post offices.
Kisan Vikas Patra (KVP)
Who can join: Any resident Indian (individual, joint, or on behalf of a minor).
Tenure: ~115 months (around 9 years 7 months) to double money.
Interest: About 7.5% p.a. in 2026.
Limits: No upper limit; purchased at post offices and some banks.
Tax: Interest is taxable; no 80C benefit; mainly for fixed, risk-free doubling of money.
Post Office Monthly Income Scheme (POMIS)
Who can join: Any Indian resident.
Tenure: 5 years.
Returns: Interest around 7%–7.5% p.a.; paid as monthly income.
Limits: Min. ₹1,000; max. limit per account and per person (usually ₹4.5 lakh–9 lakh depending on rules).
Tax: Interest taxable; no 80C benefit; good for regular monthly cash flow.
RBI Floating Rate Savings Bonds (FRSB)
Who can join: Indian residents (individuals, minors via guardian).
Tenure: 7 years.
Interest: Floating, linked to NSC rate + spread; around 8% p.a. in 2026.
Limits: Min ₹1,000, no upper limit; held in demat or physical form.
Tax: Interest is taxable; no 80C benefit; sovereign-backed with quarterly interest.
National Pension Scheme (NPS)
Who can join: Any Indian resident (18–65 years).
Tenure: Up to 60 years (withdrawal rules apply).
Returns: Market-linked (depend on equity/debt mix); not a fixed-rate scheme.
Limits: Min ₹500/year, max ₹2 lakh/year under 80C (additional ₹50,000 under 80CCD(1B)).
Tax: Contribution under 80C/80CCD; part of maturity is tax-exempt; mainly for long-term retirement corpus.
Atal Pension Yojna (APY)
Who can join: Any Indian resident (18–40 years) in general; special rules for non-EPFO workers.
Tenure: Contribution till 60 years, then pension.
Returns: Fixed pension amounts based on contribution and age; government guarantees minimum returns.
Limits: Monthly contribution as per chosen pension (e.g., ₹1,000–₹5,000/month pension options).
Tax: Contribution under 80C; mainly for low-income retirement security.
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