Small savings schemes: 13 schemes offer assured returns to investors up to 8.2 percent per annum

Investors who intend to earn a fixed income on their small investment are recommended to consider investing in small savings schemes. These investment instruments can also be referred to as post office savings schemes.

Here, we give a lowdown on 13 small savings schemes in which investors can invest to earn anywhere between 4 percent to 8.2 percent per annum.

The lowest return of 4 percent per annum is delivered by post office savings account and the maximum of 8.2 percent is given by Sukanya Samriddhi Account as well as by Senior citizen savings scheme.

Small savings schemes for investors looking to earn fixed return on investment:

Post Office Savings Account: It can be opened by depositing ₹500 and there is no maximum deposit. In case account balance is not raised to ₹500 at the end of the financial year, ₹50 will be deducted as account maintenance fee. The account stands to get automatically closed when the account balance becomes ‘nil’. Investment in this account gives a return of 4 percent per annum.

National Savings Time Deposit: One can open an account by depositing a minimum of ₹1,000 and in multiples of ₹100. There is no maximum limit for investment.

The interest income is determined on the basis of time duration of deposit.

On a one-year deposit, investors earn an income of 6.9 percent, 7 percent on two years, 7.1 percent on three years and 7.5 percent for 5 years.

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5-year recurring deposit scheme: This account can be opened by investing a minimum of ₹100 or any amount in multiples of ₹10. There is no maximum limit. Interest income earned on an RD account is 6.7 percent per annum.

Senior citizen savings scheme: This account can be opened by investing a minimum of ₹1,000 but not more than ₹30 lakh. The interest earned on this scheme is 8.2 percent.

Monthly income account: This account can be opened by investing a minimum of ₹1,000 and in multiples of ₹1,00 but not more than ₹9 lakh in single account and ₹15 lakh in joint account. The interest earned on this scheme is 7.4 percent.

(Source: indiapost.gov.in)

NSC (VIII) issue: This account can be opened by investing a minimum of ₹1,000 and in multiples of ₹100. There is no maximum limit. The interest earned on NSC is 7.7 percent per annum compounded annually.

PPF: This account can be opened by investing a minimum of ₹500 but not more than ₹1.5 lakh in a financial year. The interest earned on PPF is 7.1 percent compounded yearly.

Kisan Vikas Patra: This account can be opened by investing a minimum of ₹1,000 and in multiples of ₹100. There is no maximum limit.

The interest earned on this scheme is 7.5 percent compounded annually. Amount that you invest doubles in 9 years and 7 months.

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Mahila Samman Savings Certificate: This account can be opened by investing a minimum of ₹1,000 and in multiples of ₹100. There is a maximum limit of ₹2 lakh in one account or all accounts held by an account holder. 

There is a mandatory time gap of three months between the existing account and the opening of other account. The interest offered on this scheme is 7.5 percent per annum.

Sukanya Samriddhi Account: This account can be opened by investing a minimum of ₹250 but not more than ₹1.5 lakh in a financial year in lumpsum or in multiple instalments. The interest offered on this scheme is 8.2 percent compounded annually.