PPF, SCSS, NSC, and Sukanya Samriddhi interest rates.
Fixed-income investments form the foundation of many Indian investors’ portfolios — especially for those seeking stable returns and capital safety. Government-backed schemes like PPF, SCSS, NSC, and Sukanya Samriddhi Yojana continue to attract steady participation due to their guaranteed returns and tax benefits.
These instruments are ideal for conservative investors or as part of a diversified portfolio that balances equity risk.
Popular Fixed-Income Options and Current Interest Rates (FY 2025)
| Instrument | Target Group | Tenure | Interest Rate (p.a.) | Key Benefit |
|---|---|---|---|---|
| Public Provident Fund (PPF) | Individuals | 15 years | 7.1% | Long-term, tax-free maturity, Section 80C benefit |
| Senior Citizens Savings Scheme (SCSS) | Senior citizens (60+) | 5 years | 8.2% | Quarterly payout, government-backed |
| National Savings Certificate (NSC) | Individuals | 5 years | 7.7% | Section 80C deduction, compounded annually |
| Sukanya Samriddhi Yojana (SSY) | Girl child below 10 years | 21 years | 8.2% | Tax-free, for girl child’s education/marriage |
Tax Efficiency and Planning
- PPF and SSY offer EEE (Exempt-Exempt-Exempt) status — contributions, interest, and maturity are tax-free.
- NSC and SCSS interest is taxable, but eligible for deductions under Section 80C (up to ₹1.5 lakh per year).
Combining these schemes can help investors maintain liquidity, stability, and tax efficiency across time horizons.
Key Takeaways
- Fixed-income products provide stability but may not beat long-term inflation.
- Government-backed schemes ensure safety and predictability.
- Ideal as part of a balanced portfolio alongside mutual funds and gold.
At CapitaGrow, we help investors design portfolios that combine stability and growth — using both fixed-income products and mutual funds.
Discover how to plan your wealth effectively at capitagrow.com
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