How this Savings Schemes Comparison Calculator works
Most savers compare instruments only by their printed interest rate but two options with the same rate can behave very differently once tax, inflation, and compounding are considered. This calculator brings every major Indian small-savings scheme and bank fixed deposit onto a fair, comparable scale.
Here’s what happens behind the scenes:
- Uses latest government-notified rates for PPF, SSY, NSC, SCSS and KVP
- Adjusts FD rate using your bank rate + senior citizen premium
- Applies your income-tax slab for FD and SCSS
- Simulates multi-year compounding to compute maturity value
- Adjusts every scheme for inflation to compute real value
- Ranks all schemes by real CAGR, not just nominal return
- Highlights which option truly preserves purchasing power
The goal is simple: help you understand which savings option actually grows your money in real terms not just on paper, but after inflation and taxes.
Interest rates and assumptions used
This calculator uses the most recently published small-savings rates from the Government of India. These rates change every quarter, so always double-check before making major decisions.
- PPF: 7.1%, 15-year, tax-free
- SSY: 8.2%, tax-free maturity
- SCSS: 8.2%, taxable
- NSC: 7.7%, 5-year lock-in
- KVP: Doubles in 115 months (~7.18% CAGR)
- FD: Your bank rate, taxable, +0.5% for seniors
For KVP, the government specifies a doubling period instead of an interest rate. The calculator converts this into an annual compounded rate for fair comparison.
Understanding real returns
Interest rates show how much your money grows in nominal terms. But inflation shows how fast your cost of living rises. Real return is the difference it tells you whether your wealth is actually growing in purchasing-power terms.
If an investment earns 7% but inflation is 6%, your real growth is only around 1%. Sometimes, especially after tax, real returns can even become negative.
Formula used:
Why nominal returns are misleading
- FD and SCSS returns fall sharply after tax for 20–30% slabs
- High inflation can wipe out most of the gains
- PPF and SSY often outperform due to tax-free compounding
- A lower nominal rate can beat a higher rate if it is more tax-efficient
This calculator helps you see the long-term picture: how each scheme grows your wealth after inflation and tax the only metric that matters for real financial planning.
Frequently Asked Questions
1. Which scheme gives the highest real return?
Historically, PPF and SSY deliver the strongest real returns because of their tax-free structure. FD and SCSS may fall behind once tax is applied.
2. Can bank FDs give negative real returns?
Yes. If inflation is higher than your post-tax FD return, your real return becomes negative meaning your money loses purchasing power over time.
3. Do small-savings schemes always beat inflation?
No. They outperform inflation during some periods but may fall behind in high-inflation years. Long-term tax efficiency often matters more than the nominal rate.
4. How is the KVP annual rate calculated?
KVP declares a doubling period, not an annual rate. The calculator converts it using compound-interest maths:
5. Is this financial advice?
No. This tool is for educational comparison and planning. Always consult a qualified advisor before making significant investment decisions.