Small Saving Schemes: Guaranteed returns, tax exemption, income assurance and other benefits of government savings schemes

Small Saving Schemes: Investing in government small savings schemes is considered a profitable option. Small savings schemes include Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), etc.

These schemes are for all categories of people, which provide many benefits ranging from tax benefits to guaranteed returns.

More and more people like to invest in these savings schemes.

It has many benefits, let us tell you the benefits of Small Saving Scheme.

Guaranteed Returns

Small savings schemes such as Public Provident Fund i.e. PPF, Senior Citizen Savings Scheme, Sukanya Samriddhi Yojana provide guaranteed returns.

Since an investor knows that they will get some return, such schemes are risk-free and emerge as good investment options.

Financial Independence and Stability

Having guaranteed returns gives financial independence and stability to you and your family.

Small savings schemes serve as the foundation of secure and regular income, and helps you prepare a strong financial strategy.

Income tax exemption

Many small savings schemes provide the benefit of tax exemption.

Under Section 80C of the Income Tax Act, you can save up to Rs 1.5 lakh a year.

Schemes like PPF, Senior Citizen Saving Scheme, Time Deposit, and FD provide the benefit of tax exemption.

Minimum investment

Investors will have to make minimum investment.

Depending on small savings schemes, the amount can range from Rs 250 to Rs 1,000.

You can also invest small amounts in these schemes.

Income assurance

In today's time, people are investing in risky places like share market and mutual funds.

Whereas small saving schemes provide assurance of income.

With a fixed interest, you know in advance how much amount you will get on maturity.

Meaning you will be guaranteed to get income in the future.