The year 2025 is set to witness a major shift in the banking sector. Many public and private banks have reduced their fixed deposit interest rates, resulting in significantly lower returns for new FD investors. Even in the near future, there is little hope of higher interest rates from bank FDs. Meanwhile, Post Office small savings schemes are emerging as a promising option for investors. These schemes not only offer higher interest rates than bank FDs, but many also offer tax deductions under the old tax system.

Read More- Top 5 smartphones are even better than the OnePlus 15. Know features at a low price

Why Post Office Schemes Are Becoming Investors’ First Choice

Post Office small savings schemes are government-guaranteed options, so they carry very low risk. The government fixes the interest rates on these schemes every quarter. Currently, several schemes offer significantly higher returns than FDs from major banks. This is why investors are turning to Post Offices amid falling bank FD rates.

2-Year Time Deposit Scheme

The Post Office Time Deposit Scheme is a suitable option for those seeking a safe and stable investment. This scheme offers a 7% interest rate for a two-year term. The interest is compounded every three months. For example, an investment of ₹10,000 yields approximately ₹719 in interest by the end of the term.

Senior Citizen Savings Scheme

This scheme is aimed at providing financial security to senior citizens. The interest rate in this scheme is 8.2%, which is credited directly to the investor’s account on a quarterly basis. By investing ₹10,000, a senior citizen receives approximately ₹205 every three months. This is an excellent option for those seeking regular income after retirement.

Monthly Income Scheme

The Post Office Monthly Income Account is designed for those who wish to receive a fixed amount every month. It offers an annual interest rate of 7.4%. A person depositing ₹10,000 receives a regular income of approximately ₹62 per month. This scheme is useful for running a household or for a stable income after retirement.

National Savings Certificate

NSC is a popular fixed income investment that offers an annual interest rate of 7.7 percent. An investment of 10,000 rupees grows to 14,490 rupees in five years. The entire amount is received in lump sum at maturity, making this scheme an excellent option for medium-term investors.

Public Provident Fund

PPF is one of the most reliable and oldest investment options at the Post Office. This account offers a compounded interest rate of 7.1 percent. The scheme runs for 15 years and its most important feature is that the interest earned is completely tax-free. Investors can also make partial withdrawals.

Kisan Vikas Patra Scheme

Kisan Vikas Patra is suitable for investors seeking secure returns over the long term. It offers an interest rate of 7.5 percent. The investment doubles in approximately nine years and five months. An investment of 10,000 rupees directly becomes 20,000 rupees upon maturity.

Mahila Samman Savings Certificate

This special scheme was launched with the aim of empowering women financially. It offers a quarterly interest rate of 7.5 percent. An investment of 10,000 rupees grows to 11,602 rupees after two years. This is a suitable option for women seeking secure returns in a short period of time.

Read More- School Holiday Today – Schools remain closed here due to rain, know update

Sukanya Samriddhi Yojana

The Sukanya Samriddhi Account, opened in the name of daughters, offers an annual interest rate of 8.2 percent. This is one of the highest interest-paying schemes offered by the Post Office. This scheme is valid for 21 years, and the interest earned is tax-free. It is considered an ideal option for a daughter’s future, education, and marriage expenses.