In today’s world, everyone wants to save as much money as possible. When it comes to saving, Small Saving Schemes or Post Office Saving Schemes are often the first choices.
Many people prefer these schemes because they offer higher interest rates compared to Bank Fixed Deposits (FDs).
Post office schemes come with high interest and no risk, making them an attractive option for risk-averse investors.
Additionally, the interest rates for these schemes are revised every quarter. Here are some post office schemes that offer higher interest rates than bank FDs.
Senior Citizen Savings Scheme (SCSS)
As the name suggests, the Senior Citizen Savings Scheme (SCSS) is designed for senior citizens, specifically for individuals above 60 years of age.
This scheme requires a lump sum investment, with a maximum investment limit of Rs 30 lakh. SCSS also provides tax benefits under Section 80C of the Income Tax Act.
Interest Rate: Currently, the interest rate is 8.2%.
Maturity Period: The scheme matures in 5 years, with an option to extend for another 5 years.
Kisan Vikas Patra
Kisan Vikas Patra is a savings certificate that guarantees returns. However, it does not offer any tax benefits. There is no maximum limit on investment in this scheme.
Interest Rate: The compound interest rate is 7.5% per annum.
Maturity Period: The maturity period is 115 months (9 years and 7 months).
Post Office Monthly Income Scheme (MIS)
In the Post Office Monthly Income Scheme (MIS), investors need to invest a minimum of Rs 1500 per year,
with a maximum limit of Rs 9 lakh. The income earned from this scheme is taxable, and the interest is paid every month.
Interest Rate: The annual interest rate is 7.4%.
Maturity Period: The scheme matures in 5 years.
National Savings Certificates
National Savings Certificates offer guaranteed returns, with interest paid at maturity. The minimum investment required is Rs 1000, with no maximum limit. Investors also get the benefit of tax exemption.
Interest Rate: The compound interest rate is 7.7% per annum.
Maturity Period: The scheme matures in 5 years.
Mahila Samman Savings Certificate
The Mahila Samman Savings Certificate is popular among Indian women. However, this scheme does not provide any tax benefits.
Interest Rate: The compound interest rate is 7.5% per annum.
Maturity Period: The scheme matures in 2 years.
