Kolkata, Sep 5 (IANS): With West Bengal yet to come to terms with the Saradha scam involving a collective investment scheme, the state government Thursday announced a small savings scheme promising interest at par with nationalised banks with terms extending from one year to five years.

"The scheme slated to commence from October has been initiated to ensure that people do not get cheated by depositing money with unscrupulous firms," Chief Minister Mamata Banerjee said announcing the "Safe Savings Scheme" which will be under the aegis of the West Bengal Finance Development Corporation.

The scheme is to be operated through four nationalised banks, including the State Bank of India. Individual depositors will be able to invest a minimum of Rs.1,000 and a maximum of Rs.1 lakh while families can make an investment up to Rs.5 lakh.

Banerjee also said special counters will be opened at designated bank branches to facilitate people to invest in the scheme where an investor will be allowed to withdraw his money just after three months.

"As the scheme comes with a government guarantee, the investors will feel confident," she said.