Small Savings Schemes: A small savings plan is an investment vehicle that allows individuals to save money. These are government supported schemes.
Those who have invested in Public Provident Fund (PPF), Sukanya Samrity Yojana (SSY), post office deposits and other small savings schemes should submit their Aadhaar number at the post office or bank branch by the end of this month. If this deadline is missed, their small savings plans will be frozen.
PAN and Aadhaar number are mandatory for investing in small savings schemes like PPF, SSY, Senior Citizen Savings Scheme (SCSS). On March 31, 2023, the Ministry of Finance issued a notification in this regard.
In it, Small Savings subscribers will have to submit their Aadhaar number by September 30, 2023 while opening a PPF, SSY, NSC, SCSS or any other Small Savings account. Failing that, their small savings account will be closed after six months of opening the account. Those who have already invested in the above mentioned micro savings schemes will have their accounts frozen from October 1, 2023 if they fail to provide Aadhaar number within the given time frame.
What are Small Savings Schemes?
A small savings plan is an investment vehicle that allows individuals to save money. These are government supported schemes. Your investment in this qualifies for tax benefits. Some common eligible schemes are SCSS and PPF. You can avail benefits up to ₹1.5 lakh under Section 80C of the Income Tax Act.
The government reviews the rate every quarter. For the July-September 2023 quarter, interest rates on small savings schemes have been hiked by 30 bps. This amendment is particularly applicable to one-year and two-year term deposits and 5-year fixed term deposits.
Small Savings Schemes for July-September 2023
SCSS – 8.2%
Sukanya Yojana – 8.0%
NSC – 7.7%
Kisan Vikas Patra – 7.5%
5 Year Deposit – 7.5%
PO-Monthly Income Plan – 7.4%
PPF – 7.1%
2 Year Deposit – 7.0%
3 Year Deposit – 7.0%
One Year Deposit – 6.9%
5 year RD – 6.5%
