Many investors prefer to avoid equity funds and high-risk investments. Instead, they look for options that offer guaranteed returns.
In such cases, Post Office Schemes or Small Savings Schemes are highly beneficial.
These schemes not only help in building funds for emergencies but also assist in meeting your savings goals.
Additionally, investments in these schemes offer tax benefits of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961.
In this article, we will highlight some small savings schemes that offer both returns and benefits to investors.
Post Office Savings Account
The Post Office Savings Account offers an interest rate of 4%, with a minimum deposit requirement of Rs 500 to open an account.
National Savings Time Deposit
The National Savings Term Deposit Scheme has no maximum investment limit. You can deposit money in multiples of Rs 100 or Rs 1,000.
The interest rates are 6.9% for one-year deposits, 7% for two-year deposits, 7.1% for three-year deposits, and 7.5% for five-year deposits.
National Savings Recurring Deposit Amount
You can open this tax-saving investment at any post office with a minimum deposit of Rs 100.
There is no maximum investment limit. From January 1, it offers an interest rate of 6.7 percent.
National Savings Monthly Income Account
Money can be deposited in this account in multiples of Rs 1,000, earning 7.4 percent interest annually.
The maximum investment limit for a single account is Rs 9 lakh, while for a joint account, it is Rs 15 lakh.
Public Provident Fund
Investors who open an account in this scheme receive an annual interest rate of 7.1%.
The minimum amount required to open an account is Rs 500, and the maximum investment allowed in a financial year is Rs 1.5 lakh.
Senior Citizen Savings Scheme Account
This scheme, designed for long-term investment in old age, offers interest payable for the first time on 31st March, 30th September, or 31st December, depending on the deposit date.
After that, interest will be paid on 1st April, 1st July, 1st October, and 1st January.
Investments can start from Rs 1,000, and the maximum deposit allowed is Rs 30 lakh in multiples of Rs 1,000.
Sukanya Samriddhi Account
This scheme allows you to start saving with as little as Rs 250. It offers an interest rate of 8.2 percent on the deposited amount, and you can invest up to Rs 1.5 lakh in a year.
Kisan Vikas Patra (KVP)
You can open an account in this scheme with Rs 1000, and there is no maximum limit on investment. It offers an annual interest rate of 7.5 percent.
National Savings Certificate
The National Savings Certificate offers an annual interest rate of 7.7%. The minimum investment required is Rs 1000, and there is no maximum limit for investment.
