1. Sukanya Samriddhi Yojana (SSY)

What is SSY?

Launched under the Beti Bachao, Beti Padhao campaign, SSY is a savings scheme exclusively for the girl child. It is one of the most lucrative government-backed schemes, offering one of the highest interest rates among small savings schemes.

Key Features:

• Eligibility: Girl child below 10 years of age.

• Account Holder: Parent or legal guardian.

• Tenure: Up to 21 years from the date of account opening or until the girl gets married after age 18.

• Min/Max Investment: ₹250 to ₹1.5 lakh per year.

• Interest Rate: 8.2% per annum (compounded yearly).

• Tax Benefit: Under Section 80C (up to ₹1.5 lakh per year); interest and maturity are tax-free.

Example Calculation:

Let’s assume you invest ₹1,00,000 per year for 15 years (the maximum deposit period). At 8.2% interest, the returns will compound annually.

• Invested Amount: ₹15,00,000

• Maturity Value (at 21 years): Around ₹46,00,000

This means your money will more than triple without any tax liability!

Why SSY?

• High interest + tax-free.

• Secure future of girl child.

• Locked-in savings = disciplined investing.

• This scheme is designed for the girl child’s future education and marriage expenses.​

  • State Bank of India (SBI): Open SSY Account

  • ICICI Bank: Open SSY Account

  • HDFC Bank: Open SSY Account

  • Axis Bank: Open SSY Account

  • Bank of Baroda: Open SSY Account

  • Bank of India: Open SSY Account

  • Central Bank of India: Open SSY Account

2. Public Provident Fund (PPF)

What is PPF?

PPF is a long-term savings scheme from the government that gives guaranteed, tax-free returns. It’s one of the safest investment options in India.

Key Features:

• Eligibility: Indian residents.

• Tenure: 15 years (extendable in blocks of 5 years).

• Min/Max Investment: ₹500 to ₹1.5 lakh per year.

• Interest Rate: 7.1% (2025).

• Tax Benefit: Section 80C deduction + tax-free maturity.

Example Calculation:

Let’s say you invest ₹1,00,000 every year for 15 years.

• Invested Amount: ₹15,00,000

• Maturity Value: Around ₹27,12,000

Not as high as SSY, but still risk-free and tax-free, making it a great long-term option.

Why PPF?

• Long-term wealth creation.

• Tax-free compounding.

• Ideal for retirement or major life goals.

• HDFC Bank: Open PPF Account

• ICICI Bank: Open PPF Account

• Axis Bank: Open PPF Account

• State Bank of India (SBI): Open PPF Account

• Bank of Baroda: Open PPF Account

• Bank of India: Open PPF Account

• Punjab National Bank (PNB): Open PPF Account

3. Senior Citizens Savings Scheme (SCSS)

What is SCSS?

Designed for retirees, SCSS provides high-interest income, backed by government security.

Key Features:

• Eligibility: Indian residents aged 60+ (or 55+ for VRS retirees).

• Max Investment: ₹30 lakh.

• Tenure: 5 years (extendable by 3 more years).

• Interest Rate: 8.2% per annum (paid quarterly).

• Tax: Interest is taxable, but the principal is eligible under Section 80C.

Example Calculation:

Invest ₹15,00,000 in SCSS for 5 years at 8.2%.

• Quarterly payout: ₹30,750 (₹1,23,000 yearly).

• Total Interest over 5 years: ₹6,15,000

• Maturity Value: ₹21,15,000 (₹15 lakh principal + ₹6.15 lakh interest)

Though taxable, the regular income makes it perfect for senior citizens.

• State Bank of India (SBI): Open SCSS Account

• ICICI Bank: Open SCSS Account

• HDFC Bank: Open SCSS Account

• Bank of India: Open SCSS Account

• Union Bank of India: Open SCSS Account​

4. National Savings Certificate (NSC)

What is NSC?

NSC is a fixed-income investment scheme with guaranteed returns, ideal for conservative investors.

Key Features:

• Eligibility: Indian residents.

• Min Investment: ₹1,000 (no max limit).

• Tenure: 5 years.

• Interest Rate: 7.7% p.a. (compounded annually).

• Tax Benefit: Under Section 80C. Interest is taxable, but it’s reinvested, thus qualifies under 80C (except for the final year).

Example Calculation:

Invest ₹1,00,000 in NSC at 7.7% for 5 years.

• Maturity Amount: ₹1,45,299

• Total Interest Earned: ₹45,299

Safe and slightly better returns than FDs. It’s a great 5-year option with low risk.

• India Post: NSC Details

• Groww: NSC Investment Guide

• ClearTax: NSC Overview

• Paytm: NSC Purchase Guide

• Stable Money: Buy NSC Online

5. Tax-Free Bonds

What are Tax-Free Bonds?

Issued by government-backed entities like NHAI, IRFC, REC, these are long-term debt instruments offering tax-free interest.

Key Features:

• Tenure: 10–20 years.

• Interest Rate: 5.5–6.5% p.a.

• Tax: Interest is completely tax-free.

• Liquidity: Listed on stock exchanges.

• Max Investment: No cap.

Example Calculation:

Invest ₹10,00,000 at 6% for 20 years.

• Yearly Interest: ₹60,000 (tax-free)

• Total Tax-Free Interest in 20 Years: ₹12,00,000

Perfect for high-income individuals in 30% tax brackets who want consistent returns.

• The Fixed Income: Invest in Tax-Free Bonds

• IndiaBonds: Buy Tax-Free Bonds

• HDFC Securities: Tax-Free Bonds Investment

• Angel One: Tax-Free Bonds Guide

• Wint Wealth: List of Tax-Free Bonds​

Visual Comparison: ₹1 Lakh Over Time

As shown in the graph above, if you invest ₹1 lakh in:

• SSY (8.2%): Grows to ₹5.2 lakh in 21 years.

• PPF (7.1%): Grows to ₹4.1 lakh.

• NSC (7.7%): Grows to ₹1.45 lakh in 5 years.

• SCSS (8.2%): Gives ₹6.15 lakh in interest over 5 years on ₹15 lakh.

• Tax-Free Bonds (6%): Earn ₹1.2 lakh tax-free in 20 years for every ₹1 lakh.

Final Thoughts: Which One Should You Choose?