Small Saving Schemes: Guaranteed returns, tax exemption, income assurance and other benefits of government savings schemes
Investing in government small savings schemes such as Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY) is considered a profitable option. More and more people like to invest in these savings schemes since they provide many benefits like guaranteed returns, assured income, tax benefits, and more.
![Small Saving Schemes: Guaranteed returns, tax exemption, income assurance and other benefits of government savings schemes](https://cdn.zeebiz.com/sites/default/files/2023/11/28/270575-indian-rupee-unsplash-1.jpg?im=FitAndFill=(1200,900))
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.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/markets/stocks/photo-gallery-this-tata-group-stock-turned-every-rs-10000-of-investment-into-rs-11300-in-just-a-week-investors-richer-by-42722-crore-rupees-any-guesses-share-market-news-304023](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307143-tradingpexels.jpg?itok=rw4R7EfH)
A Tata group stock just turned every Rs 10,000 of investment into Rs 11,300 in just a week, investors richer by Rs 42,722 crore; any guesses?
![https://www.zeebiz.com/markets/stocks/photo-gallery-large-cap-midcap-stocks-shares-to-buy-for-long-term-check-out-targets-nifty-sensex-303617](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/25/306716-stockks.jpg?itok=KJTrFUIK)
Stocks to buy for long term: Analysts suggest buying these 5 largecap, 4 midcap scrips; check out targets
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-retirement-planning-budget-2024-nirmala-sitharaman-announcement-how-nps-rulebook-change-can-increase-corpus-income-and-monthly-pension-by-40-compound-return-303984](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307102-indian-currency-pixabay-take.jpg?itok=kN21EW-9)
How your NPS retirement corpus and monthly pension can jump by 40% after this rule change; get details
![https://www.zeebiz.com/personal-finance/photo-gallery-senior-citizen-savings-scheme-scss-2024-interest-rate-calculator-post-office-how-to-get-inr-rs-50000-interest-retirement-planning-guaranteed-return-maturity-amount-small-savings-303930](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/07/26/307042-fd-interest-file.jpg?itok=45ZbBRWM)
How much investment do you need in this senior citizen scheme to get Rs 50,000 quarterly interest? Know here
03:03 PM IST