Saving Schemes List: Types, Interest Rates & Tenures

Updated: 01-07-2025 10:24:53 AM

Saving Schemes are generally provided by the Government of India to enable people to save small amounts regularly for meeting their needs and requirements in future. Most of these investment options are backed by the Government of India and provide risk-free returns on the investment apart from providing rebates in the income tax in the form of deductions. The list below mentions various savings schemes along with the rates, tax deductions on principle, etc.

List of Savings Schemes

Interest rates updated on 1st July 2025

*Maximum current rate among major banks. Rate changes from one bank to another.
#At Long Term Capital Gains Tax rate of 10%. Gains up to Rs. 1 lakh are exempt.
**40% is tax free

Post Office Savings Account

This account is like a savings account with a bank, except that it is held with a post office. Only one account can be opened with one post office and can be transferred from one post office to another. You can also open an account in the name of a minor. The interest rate is 4% and is fully taxable. However a deduction of Rs. 10,000 per annum is available on your total savings account interest including post office savings interest under Section 80TTA of the Income Tax Act, 1961. The minimum balance for non-cheque account is Rs. 50 and Rs. 500 for accounts with cheque facility.

• Interest rate: 4%
• Tenure : None
  
• Minimum Investment: Rs. 50
• Maximum Investment: None
• Deduction on Principal: No
• Tax on interest: Yes

Read more about Post Office Savings Account

Post Office Recurring Deposit Account

In this account, you deposit a fixed amount every month and each instalment compounds in value. The account offers an interest rate of 6.7% that is compounded annually. The tenure for this account is fixed at 5 years which can be renewed and extended to 10 years. The minimum instalment is Rs. 100. No upper limit of investment is fixed in this account. This scheme offers no tax rebate and the interest on it is fully taxable.

• Interest rate: 6.7%
• Tenure: 5 years
  
• Minimum investment: Rs. 100
• Maximum Investment: None
• Deduction on Principal: No
• Tax on interest: Yes

Read more about Post Office Recurring Deposit Scheme

Post Office Monthly Income Scheme (POMIS)

This account provides monthly interest against your deposit with the post office. The minimum deposit amount is Rs. 1,000 and the maximum deposit is Rs. 9 lakh (Rs. 15 lakh for a joint account). The interest rate on offer is 7.4%. Any number of such accounts may be opened in any post office subject to the maximum balance limit (after adding balances in all accounts). The term of the POMIS is 5 years. You can set up an ECS facility to automatically credit the monthly interest from POMIS to your savings account. You can prematurely encash it after one year of opening the account. The premature encashment penalty for such termination is 2% of your deposit within 1-3 years. If you prematurely encash it after 3 years but before maturity at 5 years, the penalty is 1%.

• Interest rate: 7.4%
• Tenure: 5 years
  
• Minimum Investment: Rs. 1,000
• Maximum Investment: Rs. 9 lakh (Rs. 15 lakh for a joint account)
• Deduction on Principal: No
• Tax on interest: Yes

Read more about Post Office Monthly Income Scheme (POMIS)

Post Office Time Deposit

This is like a Bank Fixed Deposit (FD). The minimum amount required for a Post Office Time Deposit Account (POTD) is Rs. 1,000 and there is no maximum  limit. The interest rates are as mentioned below :

• Interest rate: 6.9% – 7.5%
• Tenure: 1-5 years
  
• Minimum Investment: Rs. 1,000
• Maximum Investment: None
• Deduction on Principal: No (except tax-saver deposit with post office)
• Tax on interest: Yes

5 year time deposits are good tax saving investment option as you can avail tax deduction up to Rs. 1.5 lakh annually under Section 80C of the income tax act. Moreover, they bear the sovereign guarantee of the government and hence are risk-free investment option.

Read more about Post Office Time Deposit

Kisan Vikas Patra (KVP)

KVP offers an interest rate of 7.5% compounded annually. It can be purchased from any post office. The invested amount doubles every 115 months. The minimum amount for investing in KVP is Rs. 1,000. Thereafter you can invest in multiples of Rs. 1,000 with no upper limit. Premature encashment of the KVP Certificate is allowed 2.5 years after purchase. The KVP certificate can be held either by a single holder or as a joint holding between two individuals. It can also be purchased on behalf of a minor. This scheme offers no tax rebate on either contributions or interest earned.

• Interest rate: 7.5%
• Tenure : 115 months
  
• Minimum Investment: Rs. 1,000
• Maximum Investment: None
• Deduction on Principal: No
• Tax on interest: Yes

Read more about Kisan Vikas Patra (KVP)

Public Provident Fund (PPF)

The Public Provident Fund (PPF) has an interest rate of 7.1%. It has a term of 15 years, which can be extended indefinitely in blocks of 5 years. The interest on the PPF is tax free and contributions to the PPF are tax deductible up to Rs. 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961. You can open a PPF account with a bank or a post office. Some banks like ICICI and Axis also allow you to open PPF accounts online. You can make partial withdrawals from the expiry of 5 years from the year in which the account is opened. Loan facility is available as well but from the third year. 

• Interest rate: Changes every quarter – 7.1% for July to September 2025.
  
• Tenure: Minimum 15 years, can be extended indefinitely
  
• Minimum investment: Rs. 500 per year
• Maximum Investment: Rs. 1.5 lakh per year
• Deduction on Principal: Yes
• Tax on interest: Not taxable

Read more about PPF (Public Provident Fund)

Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana is a government savings vehicle created for the benefit of the girl child who is 10 years of age or younger. A Sukanya Samriddhi Account has an interest rate of 8.2%. The minimum annual investment is Rs. 1,000 and the maximum is Rs. 1.5 lakh. The account can be opened by a parent or legal guardian for a girl child. A maximum of two such accounts can be opened by a parent/legal guardian for two girls. The account matures 21 years after opening or on marriage of the girl child after she reaches the age of 18. A premature withdrawal of 50% of the account balance can be made after the girl crosses 18, even if she is not married.

• Interest rate: 8.2%
• Tenure : 21 years
  
• Minimum Investment: Rs. 1,000 per annum
• Maximum Investment: Rs. 1.5 lakh per annum
• Deduction on Principal: Yes
• Tax on interest: No
  

Read more about Sukanya Samriddhi Yojana (SSY)

National Savings Certificates (NSC)

This certificate offers an interest rate of 7.7% compounded annually but payable only at maturity. It can be purchased from any post office. The minimum investment is Rs. 100 and there is no maximum limit. The tenure for this certificate is 5 years. The interest earned is deemed to be reinvested and eligible for tax deduction up to Rs. 1.5 lakh under Section 80 C. The principal amount invested also counts towards the same tax deduction up to Rs. 1.5 lakh. The current issue is called the NSC VIII Issue.

• Interest rate: 7.7%
  
• Tenure : 5 years
• Minimum investment: Rs. 100
  
• Maximum Investment: None
  
• Deduction on Principal: Yes
• Tax on interest: No (Interest is tax deductible)

Read more on National Savings Certificate or NSC

Equity Linked Savings Scheme (ELSS)

ELSS or Equity Linked Savings Scheme is a type of mutual fund. ELSS Funds have a lock-in of 3 years, which is the shortest lock-in among the various tax-saving schemes in India. Investing in ELSS Funds (also called Tax Saving Funds) is tax deductible under Section 80 C up to Rs. 1.5 lakh per annum. The returns on ELSS funds will be taxed as long term capital gains at a 10% rate. Dividends from ELSS funds will also be taxed at 10% under the Dividend Distribution Tax. ELSS funds invest at least 80% of their assets in equity (stocks) and offer a high compounding potential in the long term. The minimum annual investment in ELSS funds is Rs. 100, although it varies from one fund to another. There is no maximum limit but tax deduction is only available for contributions up to Rs. 1.5 lakh per year.

• Interest rate: Rate of return is not fixed, depends on ELSS fund performance.
• Tenure : 3 years (minimum), no maximum tenure
• Minimum Investment: Rs. 100. Different for different ELSS funds
• Maximum Investment: None
• Deduction on Principal: Yes
• Tax on interest: Taxable at 10% (LTCG)

NPS (National Pension Scheme)

The National Pension System (NPS), earlier known as New Pension Scheme is a pension system open to all citizens of India. The NPS invests the contributions of its subscribers into equities and debt and the final pension amount depends on the performance of these investments. Any Indian citizen from the age of 18-65 can open an NPS account. The NPS matures at the age of 60, but can be extended till the age of 70. Partial withdrawals up to 25% of your contributions can be made from the NPS after three years of account opening for specific purposes like home buying, children’s education or serious illness. The minimum annual contribution for an NPS account is Rs. 1,000. There is no maximum limit but the tax deduction under section 80C and 80 CCD (1B) is limited to Rs. 2 lakh per annum.

• Interest rate: Depends on returns of pension funds
• Tenure : Till the age of 60
  
• Minimum Investment: Rs. 1,000 per year
• Maximum Investment: None
• Deduction on Principal: Yes
• Tax on interest: No, but maturity amount is partially taxable (40% is exempt).

Tax Saving FDs

Tax saving FDs carry a deduction under Section 80 C of the Income Tax Act for investment up to Rs. 1.5 lakh per annum. For example, if you invest Rs. 1 lakh in a tax saving FD and you are in the 20% tax slab, you will save Rs. 20,000 in tax (20% of Rs. 1 lakh). These FDs have a minimum lock in period of 5 years and can be opened through any public or private sector bank or post office. The interest earned through tax saver FDs is taxable at your slab rate. It is a suitable investment option for those who are looking for guaranteed returns and low risk. The minimum investment in tax saving FDs is Rs. 100. There is no maximum limit but tax deduction is only available for contributions up to Rs. 1.5 lakh per year.

• Interest rate: Differs from bank to bank. Currently around 6% – 8.25%.
  
• Tenure : 5 years
  
• Minimum Investment: Rs. 100
• Maximum Investment: None
• Deduction on Principal: Yes
• Tax on interest: Taxable at slab rate

Table for interest rates of Tax-saving Bank FDs

Data as of 3rd April 2024, Source: Bank Websites

Senior Citizens Saving Scheme (SCSS)

The SCSS is open to individuals above the age of 50 (for retired defense employees) and has an interest rate of 8.2%. You can apply for an SCSS account at a bank or post office. The minimum investment is Rs. 1,000 and maximum is Rs. 30 lakh. The tenure of the SCSS is 5 years and can be extended multiple times in blocks of 3 years. To extend the account, you have to give a request within 1 year of the original maturity of the account or from the date of the end of each block period of three years. The investment in the SCSS is tax deductible up to Rs. 1.5 lakh per annum under Section 80 C but the interest on the SCSS is fully taxable. You can ask for premature closure after one year of opening the account. The premature closure penalty as per the latest government rules is a deduction of 1% of the deposit amount if the SCSS account is closed before the expiry of one year of the investment.

• Interest rate: 8.2%
• Tenure : 5 years
  
• Minimum Investment: Rs. 1,000
• Maximum Investment: Rs. 30 lakh
• Deduction on Principal: Yes
• Tax on interest: Yes

Read more about Senior Citizen Savings Scheme (SCSS)

Unit Linked Insurance Plan (ULIP)

A Unit Linked Insurance Plan (ULIP) is an integrated plan which offers life insurance cover and investment through a single scheme. Investment in ULIPs is tax deductible under Section 80 C up to Rs. 1.5 lakh per annum and the maturity proceeds of a ULIP are also exempt under Section 10(10)(D). ULIPs specify a life insurance cover (usually around 10 times your annual premium) and they allow you to choose ULIP funds which invest in equities and/or debt and function very similar to mutual funds. The minimum annual investment varies from fund to fund but is usually set at Rs. 2,500. There is no maximum limit but tax deduction is only available for contributions up to Rs. 1.5 lakh per year.

• Interest rate: Rate of return is not fixed, depends on ULIP fund performance.
• Tenure : 5 years (minimum) – 20 years (maximum). Different for different insurance companies.
  
• Minimum investment: Rs. 2,500. Different for different insurance companies.
• Maximum Investment: None
• Deduction on Principal: Yes
• Tax on interest: Not Taxable

Mahila Samman Bachat Patra

 To commemorate Azadi Ka Amrit Mahotsav, a one-time new small savings scheme, Mahila Samman Savings Certificate, has been launched for a two-year period up to March 2025. The Mahila Samman Savings Certificate will offer a deposit facility of up to Rs. 2 lakh in the name of women or girls at a fixed interest rate of 7.5% along with a partial withdrawal option.

• Interest rate: 7.5%
• Tenure: 2 years
• Maximum Investment: Rs. 2 lakh

Aadhaar and PAN Now Mandatory for All Post Office Schemes

• According to a recent notification issued by the Ministry of Finance, it is now mandatory to provide your Aadhaar number and PAN to open a new post office account. If you have not been allotted an Aadhaar, you need to provide proof of application of enrollment for Aadhaar card or enrollment ID at the time of account opening and furnish the Aadhaar number to the Accounts Office within 6 months from the date of opening the post office account.
• In case you already have an existing post office account and have not submitted your Aadhaar number, you need to submit the same within a period of 6 months with effect from 1st April 2023. Moreover, if you have not submitted your PAN at the time of account opening, you need to submit the same within a period of 2 months from the date of happening of any of the following events, whichever is earliest, namely:

– The balance at any given time in the post office account is more than Rs. 50,000

–  The aggregate of all credits in the post office account in any financial year is more than Rs. 1 lakh

–  The aggregate of all withdrawals and transfers in a month from the account exceeds Rs. 10,000

• Failure to submit Aadhaar number within the specified period of 6 months and PAN within the specified period of 2 months will lead to the account becoming inoperational till the time Aadhaar number and/or PAN is submitted to the accounts office

Note: We have taken this information from The Gazette of India. To read more, visit https://egazette.nic.in/WriteReadData/2023/244822.pdf

FAQs

Q. Which government-based saving scheme offers the highest interest rate?

Currently, the Senior Citizens’ Saving Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY) offers the maximum interest rate of 8.2% (for Q4 FY 2024-25) amongst the government-based savings schemes.

Q. Can students invest in post office savings schemes?

Yes, except Senior Citizen Savings Scheme students older than 18 years and above can invest in any post office savings schemes as per their requirement.

Q. What are the different fees and charges applicable on post office savings schemes?

The different fees and charges applicable on various Post office Investment Schemes are as follows:

Note: T​ax as applicable shall also be payable ​on the above service charges