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In the uncertain and volatile times of the stock market, every investor wants to invest his hard-earned money in a place where there is complete security and attractive returns. If you also want to earn guaranteed profits without any risk for your future, then Small Savings Schemes of Post Office still remain the strongest and reliable medium of investment in the country. The biggest strength of these schemes of the Postal Department is that they get the Sovereign Guarantee protection of the Government of India, that is, here every rupee of yours and the interest received on it is completely safe.
Whether you are planning for a bright future and higher education for your beloved daughter, want a regular income like a monthly pension after retirement, or want to earn higher interest on your money in 5 years than a fixed deposit—Post Office has superhit options for every class and age. A bumper interest of up to 8.2% per annum is being offered by the Finance Ministry on these schemes, which is much higher than the normal fixed deposit (FD) rates of most big commercial banks.
Among the post office savings schemes, the two main ones giving the highest profits are Sukanya Samriddhi Yojana (SSY) and Senior Citizen Savings Scheme (SCSS). The government is currently offering the highest annual interest rate of 8.2 percent in both the schemes:
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Sukanya Samriddhi Yojana (SSY): This account, which is started in the name of girls below 10 years of age, is proving to be a boon for the future of the daughters. It gives annual compound interest of 8.2%. Starting from a minimum of ₹250, one can invest up to ₹1.5 lakh annually. The biggest advantage is that this scheme falls in the ‘EEE’ category, that is, the deposit amount, interest received and the entire maturity amount received after 21 years is 100% tax-free.
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Senior Citizen Savings Scheme (SCSS): This scheme is the biggest support for regular income for senior citizens aged 60 years and above. A maximum lump sum investment of up to ₹ 30 lakh can be made in this. With an annual interest rate of 8.2%, the interest amount is transferred directly to the bank or post office account every quarter, so that the elderly do not have to depend on anyone.
If your goal is to build a large lump sum corpus within 5 to 10 years, National Savings Certificate and Kisan Vikas Patra are great options:
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National Savings Certificate (NSC): The government is offering interest on NSC at an annual rate of 7.7%, which is calculated on a compounded basis and is paid in one lump sum on maturity of 5 years. There is no maximum limit for investment in this scheme. Additionally, tax exemption of up to ₹ 1.5 lakh per year is also available under Section 80C of the Income Tax Act.
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Kisan Vikas Patra (KVP): Kisan Vikas Patra is the most popular medium for investors looking to fully double their money. With the current interest rate of 7.5%, the principal amount deposited in this scheme doubles in exactly 115 months (9 years and 7 months). There is no maximum limit for investment in this also.
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Post Office Monthly Income Scheme (POMIS): If you have a lump sum capital and want to earn a fixed amount as interest every month, the 5-year MIS plan is best suited. In this, monthly interest is paid at the rate of 7.4% per annum. A maximum of ₹9 lakh can be deposited in a single account and up to ₹15 lakh can be deposited in a joint account. On a maximum joint investment of ₹ 15 lakh, you get a fixed income of ₹ 9,250 from home every month without any risk.
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Post Office Time Deposit (POTD/FD): Post Office Fixed Deposit Scheme is available for tenures of 1, 2, 3 and 5 years. Attractive interest rates are 6.9% on 1 year, 7.0% on 2 years, 7.1% on 3 years and 7.5% on 5 years FD. Especially investing in 5 year time deposit also gives double benefit of tax deduction under Section 80C.
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Public Provident Fund (PPF): PPF is offering 7.1% tax-free interest for a long term of 15 years, which is considered a safe wealth creator for retirement planning.
| Scheme Name | annual interest rate (%) | Tenure | minimum investment limit | Tax Benefit |
| Sukanya Samriddhi Yojana (SSY) | 8.2% (compounded annually) | 21 years | ₹250 | EEE (Completely Tax-Free) |
| Senior Citizen Savings Scheme (SCSS) | 8.2% (quarterly paid) | 5 year | ₹1,000 | 80C exemption available |
| National Savings Certificate (NSC) | 7.7% (compounded annually) | 5 year | ₹1,000 | 80C exemption available |
| Kisan Vikas Patra (KVP) | 7.5% (money doubles in 115 months) | 115 months | ₹1,000 | no special discount |
| Post Office 5-Year FD (TD) | 7.5% (compounded quarterly) | 5 year | ₹1,000 | 80C exemption available |
| Monthly Income Scheme (POMIS) | 7.4% (monthly payment) | 5 year | ₹1,000 | interest taxable |
| Public Provident Fund (PPF) | 7.1% (compounded annually) | 15 years | ₹500 | EEE (Completely Tax-Free) |
| 5-Year Recurring Deposit (RD) | 6.7% (compounded quarterly) | 5 year | ₹100 per month | no special discount |
Opening an account in these superhit savings schemes of the post office is very easy and hassle-free. You can apply by visiting any Head Post Office or Sub Post Office nearest to you.
To open an account, you have to fill the application form of the concerned scheme and submit it along with identity proof (Aadhar card or PAN card), address proof (electricity bill, voter ID, ration card), latest passport size photograph and initial deposit amount (cash or cheque). Along with this, now the digital facility of transferring money to RD, PPF and Sukanya account online from home is also available through the mobile banking app of India Post Payments Bank (IPPB). If you also want to provide financial security to your future, then you can start investing in these schemes today itself.