Which small savings scheme offers the highest interest rate?
According to the latest interest rates, the Sukanya Samriddhi Yojana offers the highest rate of 8.2% among all small savings schemes.
The government recently announced that the interest rates for several small savings schemes, including the Public Provident Fund (PPF), National Savings Certificate (NSC) and Sukanya Samriddhi scheme for the third quarter of the fiscal year 2025-26 will remain unchanged. The Ministry of Finance made this announcement on Tuesday, 30 September 2025.
What interest rate does PPF offer?
The interest rate on a PPF account is 7.1% for the October to December quarter of the financial year 2025-25, according to the government’s notification.
What interest rate does NSC offer?
The interest rate for the National Savings Certificate scheme will stay at 7.7% during the October to December quarter of the 2025-26 fiscal year.
Does sukanya samriddhi offer tax benefits?
Sukanya Samriddhi Yojana falls under the tax Exempt-Exempt-Exempt (EEE) status. Therefore, all deposits into the scheme are deductible under Section 80C of the Income Tax Act. In the EEE category, your investment, the interest earned and income at withdrawal are all non-taxable.
Who can invest in the sukanya samriddhi yojana?
A parent or legal guardian of a girl under 10 years old can open the account on her behalf.
Other features of sukanya samriddhi yojana
- Minimum annual deposit is ₹250 and maximum is ₹1.5 lakh per financial year.
- The accounts can be opened at post offices and authorised public and private banks, such as the State Bank of India (SBI), HDFC Bank, ICICI Bank, and others.
- Withdrawal is permitted for the account holder’s higher education expenses.
- Premature closure is permitted if the girl gets married after turning 18.
- The accounts can be transferred across India between post offices and banks.
- The maturity period for the scheme is 21 years from the account opening date.
Disclaimer: This is an educational article and should not be considered an investment strategy. We advise investors to check with certified experts before making any investment decisions.
