Better than FDs: Top 5 govt savings schemes with higher interest

Banks are frequently reducing FD interest rates. For those seeking risk-free investments, post office government schemes are a great option, offering higher returns than FDs without the risk.

1- Senior Citizen Savings Scheme (SCSS)

The post office's Senior Citizen Savings Scheme offers 8.2% annual interest. Minimum investment is Rs 1000, maximum Rs 30 lakh. It also offers tax benefits under Section 80C.

2- Monthly Income Scheme (MIS)

While most banks offer 6.5% to 7% interest on FDs, the post office's MIS offers 7.4% annually, making it a higher-yielding option.

3- Kisan Vikas Patra (KVP)

KVP offers 7.5% annual interest, doubling your money in 115 months (9.5 years). It's a great scheme for risk-free returns.

4- National Savings Certificate (NSC)

NSC offers 7.7% annual interest. The minimum deposit is Rs 1000, with no maximum limit. This scheme also offers tax benefits.

5- Mahila Samman Savings Certificate (MSSC)

MSSC currently offers 7.5% annual interest. However, it doesn't offer tax benefits. Interest earned is taxed as per your income tax slab.