Published on: December 31, 2022

Small savings

Small savings

Why in news? The Union government raised the interest rates on eight small savings schemes for the January-to-March quarter of 2023, but left the returns on the popular Public Provident Fund (PPF) unchanged at 7.1%.


  • The Sukanya Samriddhi Account scheme’s return was also retained at 7.6%, prevailing since April 2020 when small savings scheme rates were cut across the board.
  • The returns on Kisan Vikas Patra (KVP) and the National Savings Certificate were raised
  • It is the second successive quarter that the Centre has made selective increases in small savings rates.
  • Returns on the Senior Citizens’ Savings Scheme and the Monthly Income Account Scheme have been raised

About Sukanya Samriddhi Account

  • It is a Government backed saving scheme targeted at the parents of girl children.
  • Aim : Encourages parents to build a fund for the future education of their female child.
  • Part of the Beti Bachao, Beti Padhao campaign.
  • Account can be opened at any India Post office or branch of authorised commercial banks by parent/guardian.


  • Age : Anytime between the birth and the time she attains 10 years
  • A girl can operate her account after the age of 10


  • Only one account per child.
  • Maximum : Two accounts for each of their children (exception allowed for twins and triplets).
  • Transfer :Account can be transferred to anywhere in India


  • Minimum deposit : 50
  • Maximum deposit : Rs. 150,000
  • After initial deposit any amount in multiples of Rs 100 can be deposited.


  • Higher education purposes : 50% withdrawal at the age of 18
  • Account reaches maturity after 21 years from date of opening it

Tax Benefits

  • Similar to that of the Public Provident Fund.

About Kisan Vikas Patra

  • It is a saving certificate scheme which was first launched in 1988 by India Post.
  • Scheme was closed under supervision of Shyamala Gopinath for its recommendation to the Government that KVP could be misused.
  • Re-launched it in 2014.


  • An adult in his own name, or on behalf of a minor
  • A Trust
  • Two adults jointly

Investment limitations

  • Minimum : Rs 1000
  • No upper limit on the purchase of KVPs

Tax benefits

  • It does not offer any income tax benefits to the investor.


  • Maturity : 2 years 6 months
  • Premature encashment is not permissible.
  • Only be encashed in event of the death of the holder or forfeiture by a pledge

About National Savings Certificate

  • It is a fixed income investment scheme that can open with any post office
  • Aim : For individuals to make small or medium savings, and tax benefits are provided for these savings.
  • Maturity tenure: 5 years and 10 years(individuals can choose from)
  • Loans against NSC: Can be used as a security or collateral


  • Eligible investor :Individuals
  • Non-resident Indians and Hindu Undivided Families are not eligible to opt for this scheme.
  • Only Indian citizens will be able to invest in the NSC scheme.

Transfer of certificate

  • Transfer is possible from one post office to another.
  • Transfer of certificate from one individual to another is also possible.

Tax Benefit

  • Investments of up to Rs 1.5 lakh can earn the subscriber a tax rebate under Section 80C.