Savings scheme

Reviewed by Anjaneyulu | Updated on Aug 01, 2021



In simple language, savings means the money one has saved, especially through a bank or official scheme. Savings scheme means a scheme designed to encourage savings by making small deposits. Generally, the Government of India, Banks or Public financial institution launches savings schemes in India.

What is Savings Scheme?

There are two types of savings schemes in India. One is the National Savings Certificate (NSC), and the second one is the National Savings Scheme (NSS).

These schemes covers Public Provident Fund (PPF), Post Office Savings Scheme, Senior Citizens Savings Scheme (SCSS), Kisan Vikas Patra (KVP), Sukanya Samridhi Yojana (SSY), Atal Pension Yojana, Employee provident Fund (EPF), National Pension System(NPS), Voluntary Provident Fund (VPF), Pradhan Mantri Jan Dhan Yojana (PMJDY).

The interest rates on these schemes are revised quarterly or half-yearly. The interest rates, investment amount and tax treatment, vary according to the guidelines of the scheme.


The savings schemes are safe instruments that enable applicants to meet long-term financial goals.

Why should you invest in Savings Scheme?

A saving scheme helps a person from unexpected personal and medical emergencies. It also supports in meeting personal aspirations such as pursuing the additional educational course, children higher education and marriage. This savings schemes will also work as an additional source of income.

The habit of participation in regular savings will give financial discipline to a person. The advantage is that these schemes are backed by the government, and this leads to complete safety and security for the invested capital. These schemes generate good returns with low risk.

How can you invest in Savings Scheme?

These schemes can be customised as per the requirement of individuals who have varied financial objectives. The government of India offers a wide range of saving schemes to cater to the varied needs of citizens across different sections of society.

For instance, Sukanya Samriddhi Yojana focuses on the financial support for the girl child and the Pradhan Matri Jan Dhan Yojana is specially designed for citizens below the poverty line.

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