Top 10 small savings schemes retail investors should explore investing into

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As a retail investor, when you zero in on an investment option, you are likely to have a key goal of wealth creation and of ensuring the safety of funds in the long run.

One of the most common investing options for common investors are fixed deposits (FDs). Besides FDs, however, investors tend to invest in small savings schemes or post office savings schemes primarily because of the safety and fixed returns they offer.

These schemes not only deliver returns in the range of 4 to 8.2 per cent per annum but also enable investors to claim income tax exemption up to ₹1.5 lakh under section 80C of Income Tax Act.

These are some of the small savings schemes investors can go for.

1. Post office savings account: The minimum balance to open a postoffice savings account is ₹500 while the minimum withdrawal amount is ₹50. There is no maximum limit of deposit.

2. Time deposit (1, 2, 3, 5 year): The minimum balance in a post office deposit account is ₹1,000 and in multiples of ₹100. There is no maximum limit for investment. The investment under 5-year term deposit qualified for the benefit of section 80C of Income Tax Act.

3. Five-year recurring deposit scheme: The minimum balance in recurring deposit scheme is ₹100 per month while there is no maximum limit.

The subsequent deposits will be made on the 15th day of month (if account opened up to 15th of the month) or on the last working day of a calendar month (if opened after 15th).

ALSO READ | Post office deposits: These risk-free savings schemes offer up to 7.5% return. Do you own any?

4. Senior citizen savings scheme: The minimum deposit in this scheme is ₹1,000 up to the limit of ₹30 lakh. Investment qualifies for the benefit of section 80C of the Income Tax Act.

5. Monthly income