Small Savings Scheme
The government has completely clarified the situation regarding interest on the common man’s hard-earned money. There has been no change in the interest rates of small savings schemes for the second quarter of the financial year 2026-27 (1 July 2026 to 30 September 2026). Investors will continue to get strong returns like before on all the major savings schemes of Sukanya Samriddhi Yojana (SSY), Public Provident Fund (PPF) and Post Office. If you are also planning to make a safe investment, then here we have explained the complete mathematics of 5 years on the basis of investment of Rs 1 lakh.
What is the profit in 5 years by investing Rs 1 lakh?
If you invest a lump sum of ₹ 1,00,000 in these government schemes as of today, then an approximate calculation of how much profit you will get in 5 years according to the current interest rates is given below.
- Sukanya Samriddhi Yojana (SSY) – 8.2%: You will get interest of around ₹ 48,300 in 5 years.
- Senior Citizen Savings Scheme (SCSS) – 8.2%: This scheme has quarterly payouts, resulting in a total interest of around ₹41,000 in 5 years.
- National Savings Certificate (NSC) – 7.7%: Your money will grow to ₹ 1,44,900 in 5 years (i.e. interest of ₹ 44,900).
- Kisan Vikas Patra (KVP) – 7.5%: At this rate you will earn interest of approximately ₹ 43,560 in 5 years.
- Post Office 5-Year Time Deposit (FD) – 7.5%: Due to quarterly compounding, you will get interest of around ₹ 44,990 in 5 years.
- Post Office Monthly Income Scheme (POMIS) – 7.4%: Adding the interest received every month, the total fixed profit in 5 years will be ₹ 37,000.
- Public Provident Fund (PPF) – 7.1%: At this rate your ₹1 lakh will become approximately ₹1,40,900 in 5 years (interest of ₹40,900).
- Post Office 3-Year Time Deposit – 7.1%: According to this rate, the interest amount for 5 years is around ₹ 40,900.
- Post Office 2-Year Time Deposit – 7.0%: This will give an interest of ₹40,250 on an estimated investment of 5 years.
- Post Office 1-Year Time Deposit – 6.9%: Under this you will get a return of approximately ₹ 39,600 in 5 years.
- Post Office 5-Year Recurring Deposit (RD) – 6.7%: At this rate the estimated interest for 5 years comes to around ₹38,300.
(Note: The figures given above are an estimate based on current interest rates. Actual returns may vary slightly depending on the method of compounding and payment in different schemes.)
Completely protected from market fluctuations
For traditional investors with a long-term perspective, these government schemes are still considered the strongest investment tool. All these schemes have 100% government guarantee, which simply means that the risk of losing your money is zero. No matter how much the stock market falls, the returns on your deposited capital remain completely safe. Along with this, investing in popular schemes like Sukanya Samriddhi and PPF also gives huge tax benefits under Section 80C of the Income Tax Act.
How does the government decide returns?
This question often arises in the minds of investors as to how these interest rates are decided. The Finance Ministry closely reviews the interest rates of these small savings schemes every three months. While determining returns, Government Bond Yields are mainly kept in mind. Apart from this, the final decision is taken keeping in mind the direction of general interest rates prevailing in the banking system, the condition of the country’s domestic economy as well as the global economic environment.
