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Small Savings Schemes, Important Small Savings Instruments
Small Savings Schemes
- Context (TH): The government raised interest rates on select small saving schemes in line with the high-interest rates in the banking system.
- Small Savings Schemes are various schemes through which people can deposit (mostly fixed deposits) money with “Govt. of India” for a fixed tenure and earn interest after maturity.
- GOI offers these schemes through various Public and Private sector banks and Post Offices.
- The money goes into the Public Account of India and is kept separately under the National Small Savings Fund (NSSF).
- The interest rate on these small savings schemes has been aligned with G-Security rates of similar maturities (except Mahila Samman Saving Patra).
- The interest rate is generally slightly higher than what banks offer on fixed deposits.
- So, every year, GOI receives money in NSSF (under the Public Account of India) and pays out to those whose deposits are maturing.
Important Small savings instruments
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