Tax season crunch hitting you? With March 31 as the deadline to claim up to Rs 1.5 lakh in deductions under Section 80C (old tax regime only), now’s the time to explore small-saving schemes. Starting April 1, 2025, the new tax regime takes over, so act fast if the old system works for you. These government-backed options are safe, popular, and tax-friendly—but watch out for quarterly interest rate tweaks, especially after the RBI’s recent 25-basis-point repo rate cut.
Public Provident Fund (PPF)
Love steady returns? PPF gives you 7.1% interest (reviewed quarterly), with investments from Rs 500 to Rs 1.5 lakh yearly. It locks in for 15 years, but you can withdraw 50% of your balance after 5 years or extend it post-maturity.
Sukanya Samriddhi Account
For your daughter under 10, this gem offers 8.2% yearly (tax-free interest!). Start with Rs 250, deposit for 15 years, and it matures in 21. Partial withdrawals (50%) are allowed after she’s 18 or clears 10th grade.
National Savings Certificate (NSC)
A simpler pick at 7.7% interest, NSCs lock your Rs 1,000+ deposit for 5 years. No early exits unless specific conditions (like death) apply. Transferable as security with a quick post office visit.
Senior Citizens Savings Scheme
Over 60? Get 8.2% interest quarterly with deposits from Rs 1,000 to Rs 30 lakh, deductible under 80C. It’s a 5-year commitment—early withdrawal costs you 1-1.5% of your principal.
Five-Year Time Deposits
A 7.5% interest deal for a Rs 1,000 minimum, this 5-year option qualifies for 80C. Pull out early, and the rate drops by 2 points.
Think Beyond Tax Breaks
These schemes tie up funds for 5+ years, so pick them only if they match your goals—not just for tax perks.
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