Saving Schemes

Government is offering various schemes for the benefits of the common peoples and all accesses of the society. These schemes start with low contribution and provides a big corpus of income after a certain period of time. These saving schemes are operated in a systematic way for investing in these schemes, saving money for additional income. Various such small savings schemes, which require contribution less but the total accumulation will be large after a long time.

The risks of investing in savings schemes are very minimal since they are mostly launched by the government. Government sponsored saving schemes have not risk at all and considered safe and secure in terms of return, operation and transparency. Apart from providing good returns, contributions made towards savings schemes are safe and secure. Government has sole discretion to decide the rate of interest depending on the saving scheme and its primary objective to provide financial benefits to the citizens.

Benefits of Savings Schemes

The primarily benefits of investing in savings schemes are revealed as below:


Various savings schemes: 

Government offers various schemes for investment based on objectives of helping the needy. These saving schemes serve to multiple sector of common people. Sukanya Samriddhi Yojana has been launched for the helping the girl child financially to achieve their educational and matrimonial goal without stress and in the same way Pradhan Mantri Jan Dhan Yojna is for the helping the poor people or below poverty line to bring them in mainstream of banking.


Security and safety: 

These schemes sponsored by government of india and government has complete control and ensure for the safety and security in terms of any kind of risk involved to benefit the people


Long-term benefits: 

These schemes provide benefits in long term through Individuals can meet their long-term obligations/goals like children’s marriage, children’s education and retirement plans.



In the age of technology, every individual can invest in various schemes through online by using mobile phones/laptops without running the government offices or banks or post offices. These things make life easier, service accessible and feasible to take advantage properly without consuming time and cost.

Types of Savings Schemes

Numerous schemes that are offered are revealed below:

Employees’ Provident Fund (EPF)

The EPF scheme is managed bythe Employees’ Provident Fund Organisation (EPFO ) with aim of serving employees to save money for their retirement. It has been made mandatory for organisations having more than 20 employees for contribution in the EPF scheme. Both the employer and employee each will have to contribute 12% of the employee’s Dearness Allowance (DA) and basic salary for the scheme.

In case of house construction, medical emergency, home loan repayment, purchasing a land or house, etc. employees are allowed to withdraw the funds from the scheme. For FY 2018-2019, the rate of interest of the scheme is 8.65% P.A. The EPFO has the only power to decide the rate of interest on a yearly basis.

Sukanya Samriddhi Yojana Account (SSY)

Sukanya Samriddhi Yojana Account is for girl children only to back saving for the benefits of girls after the age of twenty-one.

Prime Minister Narendra Modi launched The Sukanya Samriddhi Yojana (SSY) scheme for securing the future of a girl child. Currently the rate of interest is being offered by the scheme is 8.5% and by opening an account in banks or post offices

The account holder is supposed to contribute for the tenure of fourteen years towards the scheme and by the age of twenty-one year, the scheme will be matured. The minimum amount for contribution is Rs.1000/- and maximum amount for contribution is Rs. 150000/- P.A.

Atal Pension Yojana (APY)

This is centre sponsored scheme to help the individual who come in the category of below poverty line (BPL). Those who are engaged in un-organised sector seeking financial support from the government, can avail the benefits of the scheme. By paying a fix small amount of premium, they are entitled to avail the pension after retirement. Basically, this is the scheme to help the poor individuals in case of their financial crisis who are in un-organised sector.

This scheme has some condition to avail the benefits as:

  • Age must be between 18 years to 40 years.
  • Contribution may be low or high
  • Pension will be in proportion of the contribution.
  • Beneficiary can not avail any other centre sponsored saving scheme simultaneously.
  • National Pension System (NPS)
  • The NPS is the Central Government’s scheme for ensuring a regular income for individuals after their retirement. By paying a fix amount of premium employees can avail the benefits of the scheme and plan the future accordingly.
  • A certain percentage is ensured to pay back as pension on a monthly basis after their retirement.

Kisan Vikas Patra (KVP)

Basically this scheme is being offered by post offices only in India by issuing The Kisan Vikas Patra certificate . Interest Rate is being offered by the scheme now a days is 7.7% which is compounded on an annual basis. Individuals can contribute towards this scheme is minimum Rs.1000/- without any limit of maximum. After the course of 112 months, invested amount doubles. Features are as:

  • To add nominees are allowed.
  • Can be transferred from one post office to another post office.
  • Certificates are also transferable.
  • Individual can encash the certificates with 30 months from date of issue.

National Savings Certificate (NSC)

This scheme is popular among all the saving schemes operated by central government. This scheme is backed by central government where in individuals have to invest the amount for the duration of 5 years against tax benefits and guaranteed returns at post offices. Interest rates are revised quarterly by the government.

Interest Rate for the FY 2018-2019 is 8.0which will be generated on compound and annual basis. Contribution starts with Rs.100/- to no limit and under Section 80 C, individuals can avail tax benefits towards the contribution made in this saving scheme. The good feature of the scheme is that the individual is allowed to transfer the certificate to another person which can be only single time not frequently

Post Office Savings Scheme

Indian Post is offering various saving schemes for the common people with less investment having no risk at all for handsome and guaranteed returns. Its quite easy to open an account for the opted saving scheme just because of technological advancement. These schemes are very popular among peoples due to many attractive features.

Such savings schemes offered by India Post are revealed below:

  • National Savings Recurring Deposit Account
  • National Savings Monthly Income Account
  • Public Provident Fund Account
  • National Savings Time Deposit Account
  • Post Office Savings Account
  • Kisan Vikas Patra Account
  • Sukanya Samriddhi Account
  • National Savings Certificate Account
  • Senior Citizens Savings Scheme Account