Indian Post Office offers a variety of savings schemes through its extensive network of post offices. These schemes are safe due to government backing, not only offering security but also attractive interest rates.
Here
are some of the best post office savings schemes:
1. Post Office Monthly Income Scheme (MIS)
From 01.07.2023, interest rates are as follows:-
7.4 % per annum payable monthly.
In multiples of INR 1000/-
Investor can invest maximum is INR 9 lakh in single account and
INR 15 lakh in joint account
An individual can invest maximum INR 9 lakh in MIS
2. Post Office Savings Account
Interest Rate: 4% per
annum.
Key Features: Similar
to a regular bank savings account, with cheque book and ATM card facilities
available.
Minimum Balance: ₹500.
Tax Benefits: Interest
up to ₹10,000 is tax-free under Section 80TTA of the Income Tax Act.
3.
Post Office Time Deposit Account (TD)
Interest Rates: Vary
depending on the tenure.
1 year: 6.9% per annum
2 years: 7% per annum
3 years: 7.1% per annum
5 years: 7.5% per annum
Key Features: Fixed
returns over specific periods (1, 2, 3, or 5 years).
Minimum Investment:
₹1,000, with no maximum limit.
Tax Benefits: The
5-year deposit qualifies for tax deductions under Section 80C.
4.
Post Office Recurring Deposit Account (RD)
Interest Rate: 6.8% per
annum (compounded quarterly).
Tenure: 5 years.
Minimum Investment:
₹100 per month, with no maximum limit.
Key Features: Ideal for
regular monthly savings with guaranteed returns.
5.
National Savings Certificates (NSC)
Interest Rate: 7.7% per
annum (compounded annually but payable at maturity).
Tenure: 5 years.
Minimum Investment:
₹1,000, with no maximum limit.
Tax Benefits:
Investment qualifies for tax deductions under Section 80C.
Key Features:
Certificates are issued for fixed amounts, and the scheme is suitable for
long-term savings.
Click
here for more information…
6.
Kisan Vikas Patra (KVP)
Interest Rate: 7.5% per
annum (compounded annually).
Tenure: Money doubles
in approximately 115 months (9 years and 7 months).
Minimum Investment:
₹1,000, with no maximum limit.
Key Features: Designed
to encourage long-term financial discipline.
7.
Public Provident Fund (PPF)
Interest Rate: 7.1% per
annum (compounded annually).
Tenure: 15 years (with
options for extension in blocks of 5 years).
Minimum Investment:
₹500 per year, up to a maximum of ₹1.5 lakh per year.
Tax Benefits:
Investment, interest earned, and maturity amount are tax-free under Section
80C.
Key Features: Long-term
savings with attractive tax benefits.
Click
here for more information…
8.
Sukanya Samriddhi Yojana (SSY)
Interest Rate: 8% per
annum (compounded annually).
Eligibility: For girl
children below 10 years.
Tenure: Until the girl
child turns 21 years or upon her marriage after 18 years.
Minimum Investment:
₹250 per year, up to a maximum of ₹1.5 lakh per year.
Tax Benefits:
Investment, interest earned, and maturity amount are tax-free under Section
80C.
Key Features:
Encourages savings for the girl child’s education and marriage.
Click here for more information…
9.
Senior Citizens Savings Scheme (SCSS)
Interest Rate: 8.2% per
annum (compounded quarterly).
Eligibility:
Individuals aged 60 years and above (55 years for those who have retired on
superannuation or under VRS).
Tenure: 5 years
(extendable by 3 years).
Minimum Investment:
₹1,000, up to a maximum of ₹30 lakh.
Tax Benefits:
Investment qualifies for tax deductions under Section 80C.
Key Features: Designed
for senior citizens, providing regular income and tax benefits.
Click
here for more information…
Conclusion:
These schemes cater to
different financial goals, offering a mix of short-term and long-term investment
options with attractive interest rates and tax benefits.
