Post office schemes are a great option for people who want safe and guaranteed returns. These schemes not only offer better interest than bank FDs in many cases, but they also come with the safety of the Government of India.

In India, crores of people trust the post office just like they trust banks. This trust has been there for many years because post office schemes are backed by the government. This means the risk of losing your money is almost zero. These days, many banks are giving low interest on FDs, but some post office schemes are still giving better interest rates. Also, they are useful for saving tax.

If you are looking for a safe and better investment option, then you must know about these 5 post office schemes. They not only give good interest but also help you build a big fund in the future. At the same time, they help in reducing your tax. So, if you want a place where your money is safe and you also earn good returns, then these 5 post office schemes can be a superhit option for you.

5 Best Post Office Schemes for Safe Investment and Tax Saving

Post office schemes are a good option for people who want safe and guaranteed returns. These schemes give better interest than many bank FDs and are also backed by the Government of India. This means your money is safe, and there is very little risk. Here are 5 post office schemes that not only give better returns but also help you save tax.

1. Public Provident Fund (PPF) – Good for Long-Term Savings

PPF is one of the most popular schemes in India. It is best for people who want to save for a long time, like for retirement or a big goal. The current interest rate is 7.1% per year. You can invest from ₹500 to ₹1.5 lakh in one year. The maturity period is 15 years and it can be extended for 5 years after that. The best part is that the money you invest, the interest you earn, and the final amount you get—all are tax-free. If you invest ₹1.5 lakh every year for 30 years, your total investment will be ₹45 lakh, but you will get more than ₹1.5 crore at the end.

2. Sukanya Samriddhi Yojana (SSY) – Best for Girl Child’s Future

This scheme is for people who have a daughter below 10 years of age. It helps you save money for her education and marriage. The current interest rate is 8.2% per year, which is the highest among post office schemes. You can invest from ₹250 to ₹1.5 lakh in a year. The scheme matures after 21 years or when the girl gets married after turning 18. Like PPF, the money invested, the interest, and the maturity amount are all tax-free. You can also withdraw up to 50% of the money when your daughter turns 18 for her higher education.

3. Senior Citizen Savings Scheme (SCSS) – Income After Retirement

This scheme is for people above 60 years of age. It helps them get regular income after retirement. The interest rate is 8.2% per year. You can invest up to ₹30 lakh. The scheme runs for 5 years, and it can be extended for 3 more years. Interest is given every 3 months directly in your bank account. This scheme gives a fixed and safe income, but the interest is taxable.

4. National Savings Certificate (NSC) – Save Tax with Fixed Returns

NSC is good for those who want to invest a lump sum amount and get guaranteed returns. The interest rate is 7.7% per year. You must invest at least ₹1,000, and there is no maximum limit. The maturity period is 5 years. You get tax exemption under Section 80C for investments up to ₹1.5 lakh. The interest rate is fixed at the time of investment and remains the same for 5 years.

5. Kisan Vikas Patra (KVP) – Double Your Money Safely

If your goal is to double your money safely, this scheme is for you. The interest rate is 7.5% per year, and the money doubles in 115 months, which is 9 years and 7 months. You can start with ₹1,000 and there is no maximum limit. There is no tax benefit in this scheme. The final amount is taxable as per your income slab. But the best part is you know in advance when your money will double.

Some Common Questions

1. Is the interest rate always fixed in these post office schemes?

No. The government can change the interest rates for PPF and SSY every three months. But in NSC and KVP, the rate is fixed at the time of investment and stays the same till maturity.

2. Can I invest in more than one scheme at the same time?

Yes. You can invest in more than one scheme, depending on your needs. For example, you can invest in both PPF and NSC together.

3. Is the interest fully tax-free in all schemes?

No. Only PPF and SSY give full tax-free interest. The interest on SCSS, NSC, and KVP is added to your income and taxed as per your slab.

4. What if I need money before maturity?

In some schemes, you can take out money before maturity, but only under certain conditions. Also, some penalty may be applied.

5. Where can I open these scheme accounts?

You can open these accounts at your nearest post office. Some government and private banks also allow opening accounts for PPF and SSY.