SCSS, PPF and Sukanya Samriddhi – 3 savings schemes with highest returns; Know features, benefits here

The Narendra Modi government has made it clear that there will be no reductions in the interest rates of saving schemes. So, if you want to make investments for assured returns, small savings schemes are your answer. But are you aware about the schemes will earn you highest returns? The top three small savings schemes run by the government of India are Senior Citizens Savings Schemes (SCSS), Public Provident Fund (PPF) and Sukanya Samriddhi Yojana

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The small savings schemes basket comprises 12 instruments, including the National Saving Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP) and Sukanya Samridihi Scheme. The government resets the interest rate at the beginning of every quarter. 

Want to know the features and benefits of these three schemes, here is your answer:

Small Savings Schemes - See complete details here:
 
Instruments                                           Rate of Interest for April-June 2021      Compounding Frequency      
 

1. Sukanya Samriddhi Account              7.6%                                                         Annually  
2. Senior Citizens Savings Scheme       7.4%                                                         Quarterly and paid  
3. Public Provident Fund                        7.1%                                                          Annually  

 
Sukanya Samriddhi – Features and benefits
 
Investments in this scheme can be made for up to two girl children or three in case of twin girls as second birth or the first birth itself results in three girl children . An account can be opened for as little as Rs 250 of initial deposit with multiple of Rs 150, thereafter, with annual ceiling of Rs 150,000 in a financial year.  The tenure of the deposit is 21 years from the date of opening of the account. Maximum period up to which deposits can be made is 15 years from the date of opening of the account. The existing rates are 7.6 per cent per annum.
 
Senior Citizens Savings Scheme – Features and benefits
 
The Senior Citizens Savings Scheme (SCSS) which was launched by the Government of India in 2004 offers guaranteed retirement income. You need to be an Indian citizen with 60 years of age. For those who have retired on superannuation or under a voluntary or special voluntary scheme, the age requirement is 55 years. The retired personnel of Defence Services (excluding Civilian Defence Employees) shall be eligible to invest on attaining the age of fifty years subject to the fulfilment of certain conditions. The minimum investment should be Rs 1000 while the maximum is Rs 15 lakh. Deposits can be made in multiples of Rs 1,000. The tenure is 5 years and can be extended by 3 more years. Account can be opened individually or jointly with spouse.
 
PPF - Features and benefits:

Account can be opened with minimum amount of Rs 500 while the maximum annual limit is Rs 1.5 lakh. The maturity period is 15 years. It can be extended for another 5 year. The interest rate is decided by the Government of India. The current rate being offered is 7.10 per cent. The interest is paid every year on 31 March. A loan can be taken on your PPF money. It also offers tax benefits.