Small Savings Scheme: UPSC Daily Important Topic | 4 July 2022

Small Savings Scheme

✓Small Savings Schemes are a set of savings instruments managed by the central government with an aim to encourage citizens to save regularly irrespective of their age.

✓They are popular as they provide returns higher than bank fixed deposits, sovereign guarantee and tax benefits.

✓Since 2016, the Finance Ministry has been reviewing the interest rates on small savings schemes on a quarterly basis.

✓All deposits received under various schemes are pooled in the National Small Savings Fund.

✓The money in the fund is used by the Centre to finance its fiscal deficit.