Not PPF or NSC, this post office scheme offers the highest income; read the full report..
Post Office small savings schemes generally offer reliable and consistent long-term returns, making them the most popular among traditional and conservative investors. If you're looking to invest in small savings schemes, it's important to understand the different interest rates offered by each scheme to determine which offers the highest interest rate. Importantly, PPF and NSC are not among the highest-yielding small savings schemes. Let us explain…
Which scheme offers the highest returns?
According to the latest interest rates released by the government, the Sukanya Samriddhi Yojana offers the highest return of 8.2% among all small savings schemes. The government recently announced that the interest rates on several small savings schemes, including the Public Provident Fund (PPF), National Savings Certificate (NSC), and Sukanya Samriddhi Yojana, will remain unchanged for the third quarter of the financial year 2025-26. The Finance Ministry made this announcement on Tuesday, September 30, 2025.
How much return do PPF and NSC offer?
According to the government notification, the interest rate on PPF accounts for the October-December quarter of the financial year 2025-26 is 7.1%. The interest rate on National Savings Certificates (NSCs) will remain at 7.7% for the October-December quarter of the financial year 2025-26.
Special Features of Sukanya Samriddhi Yojana
The minimum annual deposit amount is ₹250 and the maximum is ₹1.5 lakh per financial year.
These accounts can be opened at post offices and authorized public and private banks, such as the State Bank of India (SBI), HDFC Bank, ICICI Bank, etc.
Withdrawals are permitted for higher education expenses.
Premature closure of the account is permitted if the girl marries after the age of 18.
These accounts can be transferred between post offices and banks across India.
The maturity period of this scheme is 21 years from the date of account opening.
Does Sukanya Samriddhi offer tax benefits?
The Sukanya Samriddhi Scheme falls under the tax-free category. Therefore, all deposits into this scheme are deductible under Section 80C of the Income Tax Act. Under Tax-Free, your investment, interest earned, and income on withdrawals are all tax-free. The parents or legal guardians of a girl child under the age of 10 can open an account on her behalf.
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