New Delhi: Post Office Saving Schemes are considered a safe investment option by scores of people across the country as these are controlled by the Centre. These schemes provide guaranteed returns and are free from market risks. By investing in them, depositors aim to create a corpus as per their needs and also save on taxes. Recently, the government increased the deposit limit in these financial instruments, making these schemes more beneficial and attractive.
The Post Office Savings Account offers interest at the rate of 4 percent. Investment in this account can be started with a minimum of Rs 500 and there is no maximum investment limit. The senior citizens are not required to pay tax on interest up to Rs 50,000 deposit on this account, thus making it an attractive option for them.
Post Office Savings schemes list:
Time Deposit (TD):
1 Year: 6.9% interest rate
2 Year: 7.0% interest rate
3 Year: 7.1% interest rate
5 Year: 7.5 % interest rate
Recurring Deposit (RD): 6.7 % per annum (quarterly compounded)
Monthly Income Scheme (MIS): 7.4 % per annum payable monthly
Senior Citizens Savings Scheme (SCSS): 8.2% per annum, payable from the date of deposit to 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 1st April, 1st July, 1st October and 1st January.
Public Provident Fund (PPF): 7.1 % per annum (compounded yearly).
Kisan vikas patra (kvp): 7.5 % compounded annually
National Savings Certificate (NSC): 7.7 % compounded annually but payable at maturity
Sukanya samriddhi yojana (ssy): Rate of interest 8.2% Per Annum(with effect from 01-01-2024 ),calculated on yearly basis ,Yearly compounded.
| Name of the scheme | interest rate | Minimum Investment | Maximum Investment | Eligibility | Tax benefit |
| Savings Account | 4% per year | ₹500.00 | No Limit | All resident Indians, minors aged 10+ years | Interest up to ₹50,000 is tax free for senior citizens |
| Time Deposit (TD) | 1yr-6.9%, 5yr-7.5% | ₹1,000.00 | No Limit | All resident Indians | Interest taxable, TDS above ₹40K/₹50K |
| Recurring Deposit (RD) | 6.7% (5 years) | ₹100.00 | No Limit | All resident Indians | Senior citizens get tax free interest up to ₹50,000 |
| Monthly Income Scheme (MIS) | 7.4% Monthly Payment | ₹1,000.00 | Single: ₹9L, Joint: ₹15L | All resident Indians | Interest taxable, TDS above ₹50,000 |
| SCSS | 8.2% quarterly | ₹1,000.00 | ₹30 lakh (feel) | 60 years+, these 55-60 retired employees | 80C exemption, TDS on ₹50K+ interest |
| PPF | 7.1% per year | ₹500.00 | ₹1.5 lakh per year | All resident Indians | Investment+Interest+Maturity Tax Free |
| NSC | 7.7% per year | ₹1,000.00 | No Limit | All resident Indians | Up to ₹1.5 lakh exemption under 80C |
| KVP | 7.5% per year | ₹1,000.00 | No Limit | All resident Indians | Interest taxable, maturity amount tax free |
| Sukanya samriddhi scheme | 8.2% per year | ₹250.00 | ₹1.5 lakh per year | A girl under 10 years of age | Investment+Interest+Maturity completely tax free |
