SBI Safe Savings Schemes: The country's largest public sector bank, State Bank of India (SBI), offers its customers—in addition to standard Fixed Deposits (FDs)—various small savings and government-backed schemes where your money remains completely safe and yields higher returns compared to regular bank FDs.
If you wish to earn guaranteed, tax-free, or tax-efficient returns while avoiding stock market risks, these three government schemes offered through SBI are excellent options. Let us explore the interest rates, terms, and benefits of these three safest schemes.
1. Senior Citizen Savings Scheme (SBI SCSS): A reliable option for senior citizens
If you are 60 years of age or older, investing in the Senior Citizen Savings Scheme (SCSS) through SBI is a superior alternative to a standard FD.
Higher interest than FDs: While SBI offers an interest rate of approximately 7.05% on a standard 5-year FD for senior citizens, the SCSS provides a guaranteed interest rate of 8.20%.
Quarterly income: Interest on the deposited amount is paid directly into your SBI savings account every three months (in April, July, October, and January).
Maximum investment: A maximum of ₹30 lakh can be deposited under this scheme. Investments made in this scheme also qualify for a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act.
2. Sukanya Samriddhi Yojana (SBI SSY): 100% tax-free returns for your daughter's future
If you have a daughter under the age of 10, a Sukanya Samriddhi account opened through an SBI branch or the YONO app offers significantly better returns compared to a bank FD.
Impressive returns: Currently, the government offers compound interest at an annual rate of 8.20% on this scheme. EEE Tax Status: This scheme falls under the Exempt-Exempt-Exempt (EEE) category. This means that the invested amount, the interest earned, and the entire maturity corpus are 100% tax-free.
Investment Limit: Deposits ranging from a minimum of ₹250 to a maximum of ₹1.5 lakh can be made in a financial year.
3. Public Provident Fund (SBI PPF): Risk-free long-term wealth creation
The Public Provident Fund (PPF) is one of the country's most preferred and safest schemes for long-term financial goals or retirement planning.
Government Guarantee and Stable Returns: The annual interest rate of 7.10% (compounded annually) is significantly better than the rates offered by standard 5-to-10-year bank FDs (6.05% – 6.45%).
Tax-free Maturity: Like the Sukanya scheme, PPF also falls entirely under the EEE category, meaning, the interest earned and the maturity amount are completely exempt from income tax.
Flexibility: After the initial 15-year lock-in period, the account can be extended in blocks of 5 years as many times as desired. Investments can start with a minimum amount of ₹500.
How to apply for these schemes with SBI?
Investing in these three schemes is very easy:
Online Mode: If you use SBI internet banking or the YONO SBI app, you can open a PPF or Sukanya account by visiting the 'E-Services / Govt Schemes' section without visiting a branch.
Offline Mode: You can visit your nearest State Bank of India (SBI) branch with your Aadhaar card, PAN card, passport-sized photograph, and the required minimum amount to open an account immediately.
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