Post Office Schemes: If you want to invest your money in a safe place where returns are guaranteed and risk is negligible, then post office savings schemes can be a great option for you. Backed by the Government of India, these schemes are not only safe but also offer attractive interest rates ranging from 4% to 8.2%. These include popular schemes like Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC) as well as many other schemes. Let us understand all these schemes in detail and know how they can help you meet your financial goals.

Public Provident Fund (PPF)

Public Provident Fund i.e. PPF is for those who want to invest for a long time. This scheme comes with a lock-in period of 15 years, which can be extended for 5-5 years later. Currently, PPF is getting an interest rate of 7.1%, which increases every year on a compounded basis. In this scheme, you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh every year.

The biggest advantage of PPF is that it is a great means of tax saving. The amount invested in it, the interest received on it and the amount received on maturity, all three are tax free under Section 80C of the Income Tax Act. If you want to save for your child’s future or retirement, then PPF is a safe and beneficial option. Apart from this, you can easily start it in any post office or bank.

Senior Citizen Savings Scheme

Senior Citizen Savings Scheme is a boon for people above 60 years of age. This scheme is one of the highest return giving post office schemes with an interest rate of 8.2%. In this, you can invest a minimum of Rs 1,000 and a maximum of Rs 30 lakh. Its duration is 5 years, which can be extended for 3 years later.

The special thing about SCSS is that it pays interest on a quarterly basis, which is beneficial for those elderly people who want regular income. The amount invested in it also gets tax exemption under section 80C. If you are looking for a reliable source for your expenses after retirement, then SCSS is right for you. To start it, you have to apply in your nearest post office with Aadhaar, PAN and age proof.

National Savings Certificate (NSC)

National Savings Certificate (NSC) is for those who want to invest for 5 years. This scheme offers an interest rate of 7.7%, which increases on an annual compounding basis. You can start investing with a minimum of Rs 1,000, and there is no maximum investment limit.

A big advantage of NSC is that investment in it is tax exempt under Section 80C. However, the interest received on maturity is taxable. This scheme is good for those who want to grow their money in the medium term, such as preparing for children’s education or any big expense. NSC can be purchased from any post office, and it can also be opened in the name of a minor.

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is specially designed for daughters. This scheme gives an interest rate of 8.2%, which is one of the most attractive schemes of the post office. In this, an account can be opened in the name of a daughter below 10 years of age. The minimum investment is Rs 250 and the maximum is Rs 1.5 lakh per year.

The duration of this scheme is 21 years, but investment has to be made only for 15 years. After this, the interest keeps increasing automatically. Investment, interest and maturity amount in SSY, all three are tax free. If you want to save for your daughter’s education, marriage or future, then this scheme is perfect for you. To start this, you have to submit your daughter’s birth certificate and KYC documents in the post office.

 Time Deposit

Post Office Time Deposit or Fixed Deposit is for those who want to invest for different periods. The scheme is available for tenures of 1, 2, 3 and 5 years. Interest rates vary depending on the tenure: 6.9% for 1 year, 7% for 2-3 years, and 7.5% for 5 years.

Investments in 5-year time deposits are eligible for tax exemption under Section 80C. You can start investing with a minimum of Rs 1,000, and there is no maximum limit. This scheme is good for those who want a safe investment like a bank FD, but with a government guarantee. Interest is compounded on a quarterly basis and is paid on maturity.

 

Post Office Monthly Income Scheme

Post Office Monthly Income Scheme is for those who want a fixed income every month. This scheme offers an interest rate of 7.4%, and is for a tenure of 5 years. You can invest a minimum of Rs 1,000 and a maximum of Rs 9 lakh (single account) or Rs 18 lakh (joint account).

The specialty of this scheme is that the interest is deposited in your bank account every month. This is beneficial for those who want income for regular expenses after retirement. However, this scheme does not provide the benefit of tax exemption. To start it, you have to submit KYC documents and investment amount in the post office.

Kisan Vikas Patra (KVP)

Kisan Vikas Patra is an investment that doubles your money in 115 months (about 9.5 years). This scheme offers an interest rate of 7.5%. You can start investing with a minimum of Rs 1,000, and there is no maximum limit. The interest on KVP grows on a compounded basis and is paid on maturity. This scheme is good for those who want to grow their money in the long term. However, it does not offer the benefit of tax exemption. It can be purchased from any post office, and can also be transferred to another person.

Post Office Recurring Deposit (RD)

Post Office Recurring Deposit is for those who want to invest a small amount every month. This scheme offers an interest rate of 6.7%, and is for a tenure of 5 years. You can start investing with a minimum of Rs 100 per month. The interest of RD is compounded on a quarterly basis. This scheme is good for those who want to save in a disciplined manner. There is no benefit of tax exemption in this, but it is a safe option for small investors. To start this, you have to fill a simple form in the post office.

Post Office Savings Account

Post Office Savings Account is a normal savings account that offers an interest rate of 4%. You can open an account with a minimum of Rs 500. There is no maximum investment limit in this account, and interest is paid on an annual basis.

This account is good for those who want to start basic savings. However, it does not offer the benefit of tax exemption. It can be opened in any post office with Aadhaar and PAN card.