These are the government-sponsored investment options that help members of the general public increase their savings. Some of the known small savings schemes include the Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), and Sukanya Samriddhi Account (SSA).
The interest rate for Sukanya Samriddhi scheme is set to remain at 8.2 per cent per annum. Public Provident Fund (PPF) holders may receive 7.1 per cent interest and post office savings deposit accounts may earn 4 per cent interest per annum.
It is expected that individuals who invest in small savings schemes can expect a hike in the limit for tax-deductible investments under the Old Tax Regime.
Senior Citizen Savings Schemes and PM Vaya Vandana Yojana provide restricted income options with guaranteed returns. It is expected that investors in these schemes can anticipate the returns to be aligned with inflation-adjusted rates.
Union Budget 2025 can also digitise the small savings schemes, as it currently poses challenges to investors in accessing details or updating them.
