Small savings schemes are designed to provide safe and attractive investment options to the public. These schemes are primarily meant for small urban and rural investors. Small savings schemes are designed to provide safe and attractive investment options to the public and at the same time to mobilize resources for development. These schemes are operated by about 1.54 lakh post offices throughout the country. If you are a parent you can help your kid to save money for his future with The Children’s ISA in this way they can save for a home or their studies. Saving schemes include a plethora of different products that are intended for a wide segment of potential customers. From the Public Provident Fund (employed- retirement fund) and Employee Provident Fund to Kisan Vikas Patra (Agriculturists) and Sukanya Samriddhi Yojana (exclusively for the girl child), the choices are many and super specialized. Following is a detailed information about the products

1. Post Office Savings Account

According to freshloan.co.uk – the individual investors deposit an amount of money in a postal savings account in order to earn a fixed rate of interest on the investments. The post office savings account is similar to a savings bank account. The only difference between the two is the minimum amount of opening. Post office savings account can be opened with a minimum amount of Rs.20 whereas in the bank savings account it is more.

• An account can be opened by cash only.
• Cheque facility can be taken in an existing account also.
• Nomination facility is available at the time of opening and also after the opening of an account.
• An account can be transferred from one post office to another.
• One account can be opened in one post office.
• Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
• A joint account can be opened by two or three adults.
• At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active.
• A single account can be converted into Joint and Vice Versa.
• Minor after attaining majority has to apply for conversion of the account in his name.
• Minimum amount of opening is Rs.20
• Maximum balance permissible is Rs 1,00,000/- in a single account and Rs 2,00,000/- in a joint account.
• Rate of interest 4% p.a.
• Interest earned is tax-free up to Rs.10000 per year

2. Monthly Income Scheme Account

Monthly Income Scheme (MIS) is an investment scheme of Indian postal service. It promises the investor guaranteed returns at 7.6% per annum in the form of fixed monthly income.

• An account may be opened by an individual. Account can be opened by cash / Cheque
• Nomination facility is available at the time of opening and also after the opening of an account.
• An account can be transferred from one post office to another.
• Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
• Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
• A joint account can be opened by two or three adults. All joint account holders have an equal share in each joint account. A single account can be converted into Joint and Vice Versa.
• Minor after attaining majority has to apply for conversion of the account in his name.
• Maturity period is 5 years from 1.12.2011.
• The minimum amount of investment is Rs.1500
• Maximum balance permissible is Rs 4,50,000/- in a single account and Rs 9,00,000/- in a joint account.
• Can be prematurely encashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means a deduction from the deposit.)
• No bonus is payable on the deposits made on or after 1.12.2011. From 1.04.2017
• Interest rates are as follows:-7.6% per annum payable monthly.
• Interest can be drawn through auto credit into savings account standing at the same post office, through PDCs or ECS./In case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post offices.

3. Post Office Time Deposit Scheme

• An account may be opened by an individual.
• An account can be opened by cash/ Cheque and in case of Cheque the date of realization of Cheque in Govt. account shall be date of opening of account.
• Nomination facility is available at the time of opening and also after opening of account.
• Account can be transferred from one post office to another.
• Any number of accounts can be opened in any post office.
• Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
• Joint account can be opened by two adults.
• Single account can be converted into Joint and Vice Versa.
• Minor after attaining majority has to apply for conversion of the account in his name.
• The minimum amount of deposit is Rs.200 and there is no limit on maximum deposit.
• The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
• In CBS Post offices, when any TD account is matured, the same TD account will be automatically renewed for the period for which the account was initially opened. Example 2 Years TD account will be automatically renewed for 2 Years. Interest rate applicable on the day of maturity will be applied.
• Interest is payable annually but calculated quarterly. From 1/4/2017, interest rates are as follows:

4. 5-year recurring deposit account

• The account can be opened by cash/ Cheque and in case of Cheque the date of deposit shall be date of presentation of cheque.
• Nomination facility is available at the time of opening and also after the opening of account.
• The account can be transferred from one post office to another.
• Any number of accounts can be opened in any post office.
• The account can be opened in the name of the minor and a minor of 10 years and above age can open and operate the account.
• A joint account can be opened by two adults.
• Subsequent deposit can be made up to 15th day of next month if account is opened up to 15th of a calendar month and up to last working day of next month if an account is opened between 16th day and last working day of a calendar month.
• *If in any RD account, there is monthly default amount that the depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit. This will be applicable for both CBS and non-CBS Post offices.
• There is rebate on advance deposit of at least 6 installments.
• A single account can be converted into Joint and Vice Versa.
• Minor after attaining majority has to apply for conversion of the account in his name.
• One withdrawal up to 50% of the balance allowed after one year.
• Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions.
• In case of deposits made in RD accounts by Cheque, date of credit of Cheque into Government accounts shall be treated as the date of deposit.
• The minimum amount of deposit is Rs.10 per month and there is no limit on maximum deposit.
• Interest rate is 7.2% p.a.(quarterly compounded)

5. National Savings Certificate

NSCs are those investment tools in which if you invest for 5 years and reinvest it on maturity then on retirement it will help you to fetch monthly pension.

• Scheme specially designed for Government employees, Businessmen and other salaried classes who are Income Tax assesses.
• No maximum limit for investment.
• No Tax deduction at source.
• Certificates can be kept as collateral security to get loan from banks.
• Trust and HUF cannot invest.
• A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor.
• Deposits qualify for tax rebate under Sec. 80C of IT Act.
• The interest accruing annually but deemed to be reinvested is eligible for a deduction under Section 80C of IT Act.
• Rate of interest is 7.9% p.a. compounded half yearly.
• Investment up to INR 1,00,000/- per annum qualifies for IT Rebate under section 80C of Income Tax Act.

*In case of NSC VIII and IX issue, transfer of certificates from one person to another can be done only once from date of issue to date of maturity.

6. Kisan Vikas Patra

Kisan Vikas Patra is a small savings instrument that will facilitate people to invest in a long-term savings plan. The main target audience for this scheme is people in semi-urban and rural areas. This is a scheme in which the principal amount doubles in 113 months.

• Amount Invested matures in 113 months.
• The rate of Interest is 7.6%.
• The certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.
• KVP can be purchased from any Departmental Post office.
• Facility of nomination is available.
• A certificate can be transferred from one person to another and from one post office to another.
• The certificate can be encashed after 2 & 1/2 years from the date of issue.
• Minimum deposit is Rs.1000 and there is no maximum limit.

7. Public Provident Fund

• Deposits can be made in lump-sum or in 12 installments.
• A joint account cannot be opened.
• The account can be opened by cash/ Cheque and In case of Cheque, the date of realization of Cheque in Govt. account shall be the date of opening of an account.
• Nomination facility is available at the time of opening and also after the opening of an account. The account can be transferred from one post office to another.
• The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
• Minimum deposit is 500/- per annum. Maximum deposit is Rs. 1,50,000/- per annum
• Investment up to Rs 1,50,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.
• Interest is completely tax-free.
• Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.
• Maturity value can be retained without extension and without further deposits also.
• Premature closure is not allowed before 15 years.
• Deposits qualify for deduction from income under Sec. 80C of IT Act.
• Interest is completely tax-free.
• Withdrawal is permissible every year from the 7th financial year from the year of opening account.
• Loan facility available from the 3rd financial year.
• Free from court attachment
• From 1/4/17 the Interest rate is 7.9% per annum compounded yearly.

8. Senior citizen savings scheme

Senior citizen savings scheme was launched in order to help the senior citizens to live a stress-free life. With rising inflation rates and falling interest rates, it becomes difficult for retired people to live a relieved life as the interest that government provides on this scheme is quite good. Following are some of the features of this scheme:

• Non-resident individuals and HUF cannot open this account.
• An individual of the Age of 60 years or more may open the account.
• An individual of the age of 55 years or more but less than 60 years who has retired on super annuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and the amount should not exceed the amount of retirement benefits.
• Maturity period is 5 years.
• A depositor may operate more than one account in the individual capacity or jointly with spouse (husband/wife).
• In case of Cheque, the date of realisation of Cheque in Govt. account shall be the date of opening of an account.
• Nomination facility is available at the time of opening and also after the opening of the account.
• Account can be transferred from one post office to another
• Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
• The joint account can be opened with spouse only and the first depositor in a Joint account is the investor.
• Interest can be drawn through auto credit into savings account standing at the same post office.
• In case of SCSS accounts, quarterly interest shall be payable on the 1st working day of April, July, October and January. It will be applicable at all CBS Post Offices.
• After maturity, the account can be extended for further three years within one year of the maturity by giving an application in prescribed format. In such cases, the account can be closed at any time after the expiry of one year of extension without any deduction.
• Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
• The interest rate is 8.4% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December.
• There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding INR 15 lac.
• Premature closure is allowed after one year on deduction of an amount equal to1.5% of the deposit & after 2 years 1% of the deposit.
• TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a.

9. Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana is one of those government schemes launched by the Indian Prime Minister, Shri. Narendra Modi. This scheme was launched for the betterment of girl child in the country. The money saved by the guardians of the girl child in this scheme is to provide for the higher education of girl and for her wedding expenses.  The best part or the best feature of the scheme is that only the girl child is allowed to withdraw from the scheme and not even the guardian is allowed to withdraw the money on behalf of the girl child.

• A legal Guardian/Natural Guardian can open the account in the name of Girl Child.
• A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.
• The account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 & 1.12.2004 can open account up to 1.12.2015.
• The account can be closed after completion of 21 years.
• Normal Premature closure will be allowed after completion of 18 years provided that girl is married.
• Partial withdrawal, maximum up to 50% of the balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.
• Minimum deposit in this scheme is Rs.1000 and the maximum deposit is Rs.150000 Partial withdrawal, maximum up to 50% of the balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.
• The rate of interest is 8.4% Per Annum (with effect from 1/10/2017), calculated on yearly basis, Yearly compounded.