NPS vs SCSS vs Sukanya Samriddhi Yojana vs PPF vs FD: Small Saving Schemes are fixed-income investment opportunities that offer income to investors at a fixed interest rate. The biggest advantage of such schemes is that they are low on risk and suitable for those investors who have a low-risk appetite or have limited investment opportunities in terms of money that they can invest and want to make sure they can earn maximum amount of money from what they invest. Such investors usually look for steady but low-risk opportunities.

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Some of the most popular schemes are NPS (National Pension Scheme) vs SCSS (Senior Citizen Savings Scheme) vs Sukanya Samriddhi Yojana vs PPF (Public Provident Fund) vs FD (Fixed Deposit), National Savings Certificate, Pradhan Mantri Vaya Vandana Yojana, PSU Bonds, RBI tax slab bonds.

While there are so many small savings scheme options available with the investors, understanding which saving schemes would work best for them is a tough nut to crack. Our expert Jitendra Solanki will simplify for the investors.

The government has started different small saving schemes understanding the specific needs of the investors. These needs may center around securing future of a girl child, having a steady income after retirement, diversifying income pool or investing to save tax, etc. All the schemes are well-differentiated and the investor can choose the scheme according to his or her need.  

The schemes could be chosen keeping these things in mind - goals, risks, returns and liquidity. We bring to you some schemes on the basis of returns on investment they offer.

-- National Pension Scheme (NPS) -The scheme has become attractive after the change in the tax system. The scheme offers tax benefits on a 60% amount after retirement. It is mandatory to invest in 40% annuity. The investment falls under 80C of the Income Tax Act. Additional rebate of Rs 50000 under 80 CCD (1B). Under this scheme, up to 10% deposited amount is tax-free under 80CCD (2). The scheme has given around 9.33% return in the last 5 years.

-- Senior Citizen Savings Scheme - This scheme is applicable for people with 60 years of age or more. The scheme offers tax rebates under section 80C of the Income Tax Act. There is a penalty for premature withdrawal. The investor can invest from Rs 1000 to Rs 1500000. The interest rate for the Jan-Mar 2020 quarter is 8.6%.

-- Sukanya Samriddhi Yojana - This scheme has been started for the girl child. The scheme can be subscribed from the birth of the child up to 10 years. This scheme can be used only for the education and marriage of the girl child. The account can be opened from Rs 500 and allows a maximum deposit of Rs 150000 in a year. The scheme offers tax benefits. The scheme is offering an interest rate of 8.4%.

-- Public Provident Fund - PPF  is a small saving scheme that has a maturity period of 15 years. It is an EEE category investment which gives investors a triple-tax benefit. You can invest between Rs 500 and Rs 150000> the government may or may not revise interest rates every quarter. Currently, the interest on PPF is around 7.7%.

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-- Fixed deposit (FD) - It is one of the most preferred investment instruments and is quite secure. It offers an interest rate of 6.5% for a 5-year FD. The scheme offers the flexibility of opening the account for just 7 days to 10 years. It can be opened in post offices or banks. The investors also have the option of opening corporate FDs.  It offers tax benefits. One can keep a lumpsum amount in the account.