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Plan for the future: National Saving Scheme (NSS): objective & types


The Government of India launched the National Savings Scheme or NSS program in India to push people to save money. The program offers safe investment options so that citizens can build wealth in the long term and build a sizeable fund. 

In this article, we will cover the National Saving Scheme (NSS): objectives & types, interest rates, benefits, and other information related to it. 

What is the National Savings Scheme (NSS)?

The NSS, also known as the National Small Savings Scheme, is backed by the Indian Government. People can build wealth over the long term by saving money through the program. Moreover, the scheme also allows investors to save money in taxes. 

The National Savings Scheme interest rate keeps updating frequently. Also, backup and support from the Government make it an ideal and safe investment option for Indian citizens. Both small and medium-income individuals find it to be a nice option. 

NSS helps people save for different goals like education, retirement, marriage, emergencies, etc.

Objectives of the NSS

The following are the main objectives of the National Saving Scheme India:

To encourage savings 

Among the main benefits of the NSS is promoting a culture of saving money. It offers safe options to invest money and high return rates to Indian citizens so that they build substantial savings for the future. This helps them with different things like retirement, emergencies, and more.

Financial inclusion 

The program aims to reach every single part of society, right from those living in urban areas to the ones in villages and remote regions of the country. This makes sure that every person in the country can access secure and safe investment options to generate savings and wealth.

To mobilise funds  

When people from all over the country invest money in the NSS program, it allows the Government of India to raise money for multiple welfare programs and development projects. Thus, both the citizens as well as the Government benefit from this scheme.

Decent return rates 

The NSS program offers genuine interest rates to investors. It makes a great option for new investors who want low-risk options and stable profits. There is no scope of losing money so it is perfect for people who just started their careers and earn less. 

Tax benefits 

There are various NSS schemes that allow investors to save money on taxes. Under Section 80C of the Income Tax Act, people can benefit from deductions on contributions made to the NSS schemes. Thus, it offers tax benefits to investors. 

Types of National Savings Scheme 

The National Saving Scheme India is popular because of assured returns, the safety of the investments, and its tax benefits. Based on the target population, like the regular public, girl child, or senior citizens, there are many types of NSS schemes in the country. These include – 

For general investors:

  • Post Office Savings Account
  • National Savings Time Deposit Account
  • National Savings Recurring Deposit Account
  • Public Provident Fund
  • National Savings Certificate
  • Kisan Vikas Patra

For girl child:

  • Sukanya Samriddhi Yojana

For senior citizens:

  • Pradhan Mantri Vaya Vandana Yojana
  • Senior Citizens Savings Scheme

Benefits of NSS

After going through the National Savings Scheme (NSS): objectives & types, now let’s take a look at the features and benefits offered under the program. 

Security of funds

The program is backed by the Government so there is minimal risk of losing the principal amount invested. Those who are new to investment and want low risk can easily invest in the scheme. People can develop a responsible scheme without having to worry about losing their hard-earned money.

Assured returns

When a person invests in an NSS scheme, he can rest assured about the money invested and can earn high returns on it. The schemes are not affected by the market and there is no risk involved at all. Also, the returns on these schemes are quarterly so that people can earn money depending on inflation. It lets them generate maximum benefits through their returns.

Long-term wealth creation

When individuals invest in the NSS scheme, it helps them make savings and collect wealth for the long term. This way, people can stay stress-free regarding their future goals and retirement. The wealth also helps a lot in cases of emergency.

How to Invest in the National Savings Scheme

Follow these steps to invest in the NSS program.

Step 1 – Choose the scheme

There are many different NSS schemes in India as discussed above. Each one has different features and benefits on offer so choose the one that suits your requirements.

Step 2 – Open an account

You can visit any post office in the country to open an account. You must provide some documents including PAN Card, Aadhar Card, ID Proof, and Address Proof. 

Step 3 – Deposit your money

Check the deposit limit related to the National Savings Scheme chosen by you. After this, deposit your preferred amount in your account.

Step 4 – Get the certificate

After you make the deposit in your account, you will receive a passbook or certificate depending on your chosen scheme. This will act as proof of your investment in the scheme.

Step 5 – Enjoy benefits

Enjoy several benefits on offer that include high return rates, liquidity, security, and tax benefits.


You can protect your financial future and build long-term wealth by taking part in the National Savings Scheme program in the country. This helps a lot in long-term goals like saving for marriage, retirement, education, and emergencies. If you are a new investor who wants assured returns without taking a high risk, you should consider the NSS. For more insights into the world of finance, visit StockGro. 

Frequently Asked Questions

What is National Saving Scheme? 

The Government of India started the National Savings Scheme (NSS) program. It helps citizens save money and build wealth for a better future. Some popular NSS schemes in the country are the Public Provident Fund, Sukanya Smariddhi Yojna, Senior Citizens Savings Scheme, Post Office Time Deposit, etc.

What is the interest rate offered by various NSS schemes?

There are many NSS programs available and each of them has different interest rates, benefits, and features. Make sure you check this out before investing as the interest rates frequently update. Generally, most of the schemes offer return rates in the range of 4% to 8%.

What are the benefits that NSS offers?

There are several benefits offered to people by the programs under NSS. Citizens get security of funds, tax exemption, assured and high returns, flexibility, and future planning.

Does the NSS scheme offer tax benefits to citizens?

Yes, national scheme tax saving can be done under section 80C. Most NSS schemes like NSC, PPF, Senior Citizens Savings Scheme, Sukanya Samriddhi Yojana, etc. offer tax exemptions to Indian citizens.

Which NSS scheme offers the highest returns?

To get the highest return rates, you can invest in the Sukanya Samriddhi Yojana. Another great option for this is the Senior Citizens Savings Scheme.

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