Post Office Saving Schemes: How much interest is being received in Post Office’s RD, FD, PPF, MIS, SCSS and Sukanya Samriddhi Yojana? See investment rules and complete list

In the times of stock market fluctuations and fluctuating returns, small savings schemes of India Post are considered to be the most reliable option among common citizens for traditional and safe investment. Being protected by the Sovereign Guarantee of the Central Government, the depositors’ capital remains completely risk-free and fixed returns are guaranteed. Many popular schemes are being operated in the post office for secure future, regular monthly income, retirement fund and higher education of daughters under interest rates fixed on quarterly basis by the Finance Ministry. If you are also planning to invest in savings schemes, then it is important to understand the complete information about interest rates, investment limits and tax exemptions of Recurring Deposit (RD), Time Deposit (FD), Public Provident Fund (PPF), Monthly Income Scheme (MIS), Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY).

For middle class and employed people, 5 year RD scheme is considered most suitable for inculcating the habit of regular monthly savings.

• Interest Rate and Calculation: on this account 6.70% per annum Interest is given at the rate of Rs. 1000, which is calculated on quarterly compounding basis.

• Amount deposited: This account can be opened with a minimum installment of just ₹100 per month and there is no limit on the maximum deposit.

• Account Tenure and Loan Facility: This account opens for 5 years (60 months). After the account remains active for one year continuously, the facility to take loan up to 50% of the deposited amount is also available. Premature closure is allowed after completion of 3 years.

Like fixed deposits (FD) of banks, a lump sum amount is deposited for a fixed period of time in post office time deposit. Tenures of 1 year, 2 years, 3 years and 5 years are available:

• Interest Rates:

  
  

  • 1-Year Time Deposit: 6.90%

  • 2-Year Time Deposit: 7.00%

  • 3-Year Time Deposit: 7.10%

  • 5-Year Time Deposit: 7.50%

• tax benefit: Only the amount deposited in a 5-year time deposit account gets the benefit of tax deduction of up to ₹1.5 lakh per year under Section 80C of the Income Tax Act. Interest is calculated on a quarterly basis and paid annually.

PPF is one of the most popular instruments in terms of long-term financial security, retirement corpus and tax savings.

• Interest and Tax Benefits: currently on ppf 7.10% annual interest is being received, which is calculated compounded on an annual basis. The biggest attraction is that PPF ‘EEE’ (Exempt-Exempt-Exempt) Received category status. This means that the amount invested (under Section 80C), interest earned and the entire fund received on maturity is completely tax-free.

• Rule: A minimum of ₹500 and a maximum of ₹1.5 lakh can be deposited in a financial year. This account matures in 15 years, which can be extended in blocks of 5 years if required.

National Savings Monthly Income Account (POMIS) is the safest option for investors who want to receive a fixed income every month (income like monthly pension) by depositing lump sum capital.

• Interest and Monthly Returns: Currently on MIS Scheme 7.40% per annum Interest is being given. It is paid directly into the investor’s savings account every month.

• input range: Maximum ₹ 9 lakh in Single Account and maximum in Joint Account ₹15 lakh Can be deposited up to.

• Example: If you deposit ₹15 lakh in a joint account, at an interest rate of 7.4%, you will get a guaranteed monthly income of around ₹9,250 every month. The maturity period of this scheme is 5 years.

For senior citizens aged 60 years and above, this scheme tops the highest interest paying safe options in the market.

• Interest Rate: on scss 8.20% per annum Attractive interest rate is available. Interest payment is credited to the investor’s account every quarter (every three months).

• Investment limits and tax exemptions: A senior citizen can have maximum in this account ₹30 lakh Can invest up to. The amount deposited is eligible for exemption up to ₹1.5 lakh under Section 80C of Income Tax.

• Duration: The account matures in 5 years and can be extended for 3 additional years on completion of the tenure.

This is a special government savings scheme to secure the bright future and marriage expenses of the girl child under the ‘Beti Bachao, Beti Padhao’ campaign.

• Highest interest rate: Among small savings schemes, Sukanya Samriddhi Yojana has the highest 8.20% per annum Interest is being given. Interest is calculated on annual compound basis.

• Eligibility and Rules: This account can be opened in the name of girls below 10 years of age by their parents or legal guardian. This account can be opened only for a maximum of two daughters in a family (three in case of twin girls).

• Deposit Limit and Maturity: A minimum of ₹250 and a maximum of ₹1.5 lakh can be deposited in a financial year. The amount has to be deposited for 15 years from the date of account opening and the account matures when the girl turns 21 years of age or at the time of marriage after 18 years of age. Partial withdrawal up to 50% is allowed for higher education once the girl child turns 18. Like PPF, this scheme is also completely tax-exempt (EEE).

To open an account in any post office savings scheme, the following identity and address documents are required to be submitted to the nearest post office branch:

1. Proof of Identity: PAN Card (PAN Card is mandatory) or Passport, Voter ID or Driving License.

2. Proof of Address: Aadhar Card, Electricity Bill, Ration Card or Residence Certificate.

3. Recent passport size photograph: 2 to 3 color photographs.

4. Additions to Sukanya Samriddhi Yojana: Original Birth Certificate of the girl child.

5. Addition to Senior Citizens Scheme (SCSS): Age certificate and superannuation (VRS/Superannuation) document.

Post office savings accounts are also linked to India Post Payments Bank (IPPB) and mobile banking, allowing online fund transfer and installment payments from the comfort of home.