Government Savings Schemes
Compare tax-saving schemes with 2025–26 interest rates
NPS
National Pension SystemA government-sponsored pension scheme for systematic retirement savings with tax benefits.
Interest Rate
Market Linked (10–12% avg)
Lock-in
Till age 60
Tax Benefit
Up to ₹2L under 80C + 80CCD(1B)
Min Investment
₹500/month
Max Investment
No limit
Best For
Retirement planning
Key Features:
- ✓Choice of fund managers and asset allocation
- ✓60% corpus tax-free at maturity
- ✓Additional ₹50,000 deduction under 80CCD(1B)
- ✓Partial withdrawal allowed for specific purposes
PPF
Public Provident FundA long-term, risk-free savings scheme backed by the Government of India with EEE tax status.
Interest Rate
7.10% p.a. (compounded annually)
Lock-in
15 years
Tax Benefit
Up to ₹1.5L under 80C
Min Investment
₹500/year
Max Investment
₹1.5L/year
Best For
Safe long-term savings
Key Features:
- ✓EEE status: Exempt at investment, growth, and withdrawal
- ✓Loan facility available from 3rd to 6th year
- ✓Partial withdrawal from 7th year
- ✓Can be extended in blocks of 5 years
SSY
Sukanya Samriddhi YojanaA savings scheme for the girl child with the highest government-backed interest rate.
Interest Rate
8.20% p.a. (highest govt rate)
Lock-in
Till girl turns 21
Tax Benefit
Up to ₹1.5L under 80C
Min Investment
₹250/year
Max Investment
₹1.5L/year
Best For
Girl child education & marriage
Key Features:
- ✓Highest interest rate among small savings schemes
- ✓Account can be opened for girl child below 10 years
- ✓Partial withdrawal for higher education after age 18
- ✓EEE tax status
NSC
National Savings CertificateA fixed-income investment scheme with guaranteed returns and tax benefits.
Interest Rate
7.70% p.a. (compounded annually)
Lock-in
5 years
Tax Benefit
Up to ₹1.5L under 80C
Min Investment
₹1,000
Max Investment
No limit
Best For
Guaranteed returns seekers
Key Features:
- ✓Interest compounds annually but paid at maturity
- ✓Accrued interest qualifies for 80C deduction
- ✓Can be pledged as collateral for loans
- ✓Available at all post offices
SCSS
Senior Citizens Savings SchemeA special savings scheme for senior citizens with high interest and quarterly payouts.
Interest Rate
8.20% p.a. (paid quarterly)
Lock-in
5 years
Tax Benefit
Up to ₹1.5L under 80C
Min Investment
₹1,000
Max Investment
₹30L
Best For
Senior citizens seeking regular income
Key Features:
- ✓Quarterly interest payout for regular income
- ✓Available to individuals above 60 years
- ✓VRS/superannuation beneficiaries eligible at 55
- ✓Can be extended for 3 more years after maturity