Best Post Office Savings Schemes: Indian Postal service offers several investment options for its customers which is commonly known as post office saving schemes. At present, we have 9 post office saving schemes. These nine small saving schemes include Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Post Office Time Deposit for a 5 Year Term and Senior Citizen Savings Scheme (SCSS). Post office keep on changing the interest rates of these small savings schemes time to time.
Moreover, you will also get the facility of opening a savings account with a minimum deposit of ₹500.
Best Post Office Savings Schemes:
Let's know about the best post office savings schemes.
1) Post Office Savings Account: 4% interest rate annually
You can also open a savings account with the post office, which is similar to savings accounts opened with banks. India Post also allows you to transfer money in your post office savings account online.
If you open a savings account, then it gets a 4 percent interest rate annually. This interest rate has been fixed for the third quarter of the current financial year.
2) Post Office Time Deposit Account
You can also open time deposits as a post office saving scheme for 1, 2, 3 and 5 years of tenure. It is similar to fixed deposits offered by banks. Post office term deposits of 1-3 years gives an interest rate of 5.5%.The five-year term deposit gives 6.7%.
3) 5-Year Post Office RD
With small monthly investments, these RD accounts offer lucrative interest rates. This recurring deposit scheme offered by post offices will get new investors 5.8%.
Recurring Deposit account is a small instalment deposit, good interest rate and government-guaranteed scheme. The account of recording deposit is opened for five years in the post office. Although banks provide RD account facility for six months, a year, two years, three years etc.
4) Public Provident Fund (PPF)
PPF is a popular tax, long-term savings scheme, which matures in 15 years. Nonetheless, investors can avail partial withdrawal after 5 years. A minimum deposit of Rs. 500 per year is required to keep the account active. This will fetch 7.1%.
Benefits of Public Provident Fund
-
Public Provident Fund offers high-interest rates
-
It is loaded with tax benefits, tax-exemption and security to capital.
-
Interestingly, the interest earned & returns are not taxable under the Income Tax.
-
By investing Rs 100 in this government scheme, you can earn around Rs 54.47 lakh.
-
By investing money in PPF scheme, you can save tax of up to Rs 1.5 lakh every year.
5) Kisan Vikas Patra (KVP)
The Kisan Vikas Patra (KVP) will now mature or double in value in 124 months giving an interest rate of 6.9%.
6) Senior Citizen Savings Scheme (SCSS)
Investors who are 60 years old can deposit up to Rs. 15 lakh over their lifetime in a Senior Citizen Savings Scheme to earn regular interest income. This has a lock-in period of 5 years. The senior citizens scheme gives 7.4%.
7) Post Office Monthly Income Scheme
You can invest a maximum of Rs. 4.5 Lakh individually and Rs. 9 Lakh jointly in post office MIS scheme. MIS allows investors to generate a steady monthly income, and gives an interest rate of 6.6%.
Under the Post Office Monthly Income, you can open an account for up to five years. The interest rate is calculated on an annual basis and depositors are paid monthly. The rate of interest on POMIS is fixed by the central government, which is every quarter. The rate of interest that a user receives on a monthly basis is the rate at which the principal is deposited.
8) National Savings Certificate (NSC)
National Savings Certificate has a lock-in period of 5 years. This will fetch 6.8% interest. For example, if you invest Rs 15 lakh in the beginning then you will get an amount of Rs 20.85 lakh after 5 years at the interest rate of 6.8. Your investment in this will be 15 lakhs, but there will be a benefit of about 6 lakh rupees in the form of interest. If you want, you can extend it even further.
9) Sukanya Samriddhi Yojana (SSY)
The popular girl child savings scheme Sukanya Samriddhi Yojana account will earn an interest rate of 7.6%. A maximum of 2 accounts is allowed for a household for two daughters individually. Once the child reaches 21 years of age, she is eligible to claim the maturity amount.
