Small savings: Deposits up 16% in West Bengal in FY21

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West Bengal topped the country in mobilisation of small savings instruments in FY21, economically the worst year in Independent India by registering an average growth of 16%. Net collection – gross collection minus withdrawal on maturity – increased by almost 10%, received from official sources that is yet to be made public. Sources said this year too Bengal pushed Uttar Pradesh to the second spot with a gross collection of around Rs 1.1 lakh crore in the entire year.

According to unofficial data, gross collection from Bengal in pandemic-crippled FY21 stood at Rs 1,20,496 crore, which is almost 16% up from Rs 1,03,972 crore in FY20.

Net collection stood at Rs 21,464 crore. This was up by almost 10% from Rs 19,525 crore in 2020.

In FY19, gross collection from Bengal stood at Rs 82,820 crore and net collection stood at Rs 14,441 crore.

“West Bengal is always a frontrunner in small savings deposits. Only Uttar Pradesh rivals Bengal in some years. But in FY21 UP probably come second. We have to wait for the official figure. But UP was far behind Bengal in the collection in the first 9 months, when the gross collection of UP was about Rs 10,000 crore less than that of Bengal,” said Nirmal Das, general secretary, WB Small Savings Agents’ Association.

Earlier projection

In February, the state finance department projected a gross collection figure of Rs 1.18 lakh crore, but the eventual amount surpassed that figure, said Das.

Small saving instruments are those that are available from post offices only.

These are National Savings Certificate, Kisan Vikas Patra, Sukanya Samriddhi Scheme, Senior Citizen Saving Scheme, Monthly Income Scheme, Public Provident Fund, post office savings account, recurring deposits in post offices and term deposits of 1-5-year tenure.

Countrywide

In 2017-18, gross collections across the country was Rs 4,87,876 crore and net collection stood at Rs 71,971 crore, all small savings instruments taken together.

That year Uttar Pradesh went ahead of West Bengal which was pushed to the number two slot. But in the next two years, Bengal reclaimed its top spot.

For 2018-19, the gross collection in the country was Rs 5,50,919 crore and net collection stood at Rs 1,07,407 crore. In 2019-20 the gross and net collections stood at Rs 8,31,347 crore and Rs 2,68,225 crore respectively.

Important points

Small savings schemes are popular with a huge number of people even in this age of low interest rates.

The returns offered by the small savings instruments are as follows: National Savings Certificate (6.8%), Kisan Vikas Patra (6.9%), Sukanya Samriddhi Scheme (7.6%), Senior Citizen Savings Scheme (7.4%), Monthly Income Scheme (6.6%), Public Provident Fund (7.1%), post office savings account (4%), recurring deposits (5.8%) and term deposits (5.5% for 1, 2, 3-year tenure and 6.7% for 5-year tenure).

If an individual wants to invest as low as Rs 300 or Rs 500 per month, then he/she has multiple options to invest in any of these small savings instruments, which offer safe, guaranteed returns.