SCSS Vs PPF Vs Sukanya Samriddhi – which savings scheme gives you HIGHEST RETURNS? Compare and find out yourself

If you are looking for safer investment options with assured returns, then this may be of interest to you. You can invest in some wonderful small savings schemes. There are 12 of them, but we will tell you about the top 3 schemes with the highest rate of interest. 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.   

Also, note that there is no reduction in the interest rates for the April to June quarter. The 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.  

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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 they are:  

Small Savings Schemes – Which schemes give you highest returns     

Instruments                               Rate of Interest for April-June 2021      Compounding Frequency       

Sukanya Samriddhi Account              7.6%                                                   Annually     

Senior Citizens Savings Scheme        7.4%                                                   Quarterly and paid     

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 of 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.