• Finance Minister has said that interest rates on small savings schemes will continue to be at the levels as in March 2021.
• Ministry of Finance decides the small savings interest rates on a quarterly basis and the schemes are classified under three heads Postal deposits like savings account, Savings certificates like National Small Savings Certificate, Social security schemes like Public provident fund.
• All small savings collections are credited to National Small Savings Fund administered by Department of Economic Affairs.
Senior Citizens Savings Scheme Account:
• This scheme is for those over 60 years old.
• Maximum investment – Rs 15 lakh.
• Those above 55 years of age but below 60 can also avail it, subject to certain conditions.
Public Provident Fund Account:
• It has a 15-year lock-in period.
• Minimum deposit is Rs. 500, and Rs. 500 every financial year.
Sukanya Samriddhi Account:
• Listed under Beti Bachao, Beti Padhao scheme.
• A guardian can open this account in favour of girl children up to 10 years of age.
• Minimum Investment is Rs. 250 per year. The maximum Investment is Rs. 1,50,000 per year.
Mains Paper 2: Governance
Prelims level: small savings schemes