Savings Schemes |
Lock - in period/Investment tenure |
Interest rate |
Investment amount |
Taxation |
Public Provident Fund (PPF) |
15 years |
7.1% |
Min - ₹500 Max - ₹1.5 lakhs |
Investment, interest earned, and maturity returns qualify for tax deduction and exemption benefits. |
National Savings Certificate (NSC) |
5 years |
6.8% |
Min - ₹100 Max - Not defined. |
The investment and the interest reinvested qualify for the tax deduction under Section 80C. The interest earned is taxable based on the tax slab. |
Senior Citizens Savings Scheme (SCSS) |
5 years, investment period can be extended for 3 years. |
7.4% |
Min - ₹1000 Max - ₹15 lakhs |
Investment qualifies for the deduction under Section 80C. Interest earned is taxable. However, senior citizens can claim a deduction of up to ₹50,000 under Section 80TTB. |
Post Office Monthly Income Scheme (POMIS) |
5 years |
6.6% |
Min - ₹1500 Max - ₹4.5 lakhs |
No tax benefits. |
Kisan Vikas Patra (KVP) |
124 months |
6.9% |
Min - ₹1000 Max - Not defined |
No tax benefits |
Sukanya Samriddhi Yojana (SSY) |
Contribution - 15 years 21 years from the date of opening the account or until when the girl child gets married after 18 years of age. |
7.6% |
Min - ₹250 Max - ₹1.5 lakhs |
Investment made and interests earned qualify the tax deduction and exemption benefits. |
National Pension Scheme (NPS) |
Until 60 years of age |
9% - 12% |
Min - ₹1000 Max - Not defined |
Amount invested qualifies for a tax deduction of up to ₹2 lakhs. 60% of funds withdrawn at maturity is tax-exempt, and the income earned is taxed based on the applicable income tax slab post-retirement. |
Atal Pension Yojana |
20 years |
|
Investment is based on the pension required. Min - ₹1000 Max - ₹5000 |
Investment and returns are not taxable. |
Employees Provident Fund |
5 years |
8.1% |
12% of the basic salary each by the employee and employer. |
Employee’s contribution qualifies for tax deduction under Section 80C, and the employer’s contribution is taxable if the total contribution to NPS, EPF or superannuation fund exceeds ₹7.5 lakhs. The interest credited on employee contributions made above ₹2.5 lakhs is taxable. |
Voluntary Retirement Fund |
5 years |
8.1% |
Min - Above 12% of the EPF contribution Max - Up to 100% of the basic salary and dearness allowance |
The contribution, interest earned, and maturity returns qualify for the tax deduction and exemption benefit. |