Indian Post Office Savings Schemes – 9 Best Schemes

Time has gone where one used to use the post office to do some parcels or whatever you are aware of regarding the post office. But here I am going to share the 9 best post office savings schemes that are available throughout the nation. So that one can get a huge amount of return without taking any risk or you can say that at very minimal risk.

Things to keep in mind before investing money in Post office savings schemes

1. Do your own analysis before putting money anywhere
2. Investing is a long-term game have patience. If you want to double your money, stop reading further this is not for you
3. 3 things to do before investing

Benefits of Post Office Savings Schemes

1. Straight and simple investment procedure
2. Fixed returns that are backed by government
3. Few documents are required
4. Easily available in any post office
5. Long-term benefits one can get
6. One can get tax benefits under some post office savings schemes

Types of Post Office Savings Schemes

1. Post Office Savings Account (POSA)
2. Post Office Monthly Income Scheme (POMIS)
3. Post Office Recurring Deposits (PORD)
4. Post Office Time Deposit (POTD)
5. Kisan Vikas Patra (KVP)
6. Senior Citizens Saving Schemes ( SCSS )
7. Public Provident Fund ( PPF )
8. National Saving Certificate (NSC)
9. Sukanya Samriddhi Yojana (SSY)

Post Office Savings Account (POSA)

Post office savings account is similar to savings of a bank account. One can open 1 account in 1 post office. If you want one can change the post office savings account to another nearby post office if they want. Normally 4% interest is provided in post office savings accounts. The best part of this post office savings account is one can get a 10,000 Rupees interest exemption according to Section 80TTA.

Post Office Monthly Income Scheme (POMIS)

In this one has to invest lumpsum amount. The lumpsum amount is basically one investment all amounts at once basically is called lumpsum. For example, you have 5Lakh rupees and you are looking to invest that 5Lakh at once which is called a lumpsum amount. Getting back to the topic if you are an Indian resident you can join an individual or joint account as per your requirement. If anybody wants to open a minor account they can open it.

If someone is above 10 years then he or she can manage accordingly. The minimum amount of investment one has to pay is Rs 1000 and the maximum is up to Rs 9Lakh if you have an individual account. Whereas if you have a joint account then the minimum investment is Rs 1000 but you get more upper limit of Rs 15Lakh. The interest rate is 7.4% which is pretty good. The maturity period in the post office monthly income scheme is 5 years.

After 1 year, one is eligible to withdraw. But if you try to withdraw in the first 3 years you will have to pay a 2% penalty. And after 2 years if you try to withdraw then you have to pay a 1% penalty. The interest that you earn is taxable.

Post Office Recurring Deposits (PORD)

One has to make a monthly investment in post office recurring deposits. The tenure is around 5 years. One can get a 6.2% annual interest rate. The minimum investment amount is Rs 1000 and the best part is there is no upper limit. One can invest according to their goals. See to it that if you fail to make an investment every month one has to pay a 1Rs fine on 100Rs. One can open minor, joint, and multiple accounts. After 1 year balance one can withdraw a partial amount. TDS is not deducted from interest earned on this scheme. But one has to pay tax according to their tax slab.

Post Office Time Deposit (POTD)

Minimum Rs 1000 and there is no maximum limit in post office time deposit. If you want you can open individual or joint accounts as per your needs. After tenure is completed it is automatically renewed to the next plan. You can learn more about this at your respective post office. If 1 year has passed one can get 6.8% interest, on 2nd year one may get 6.9% interest, on 3rd year one can get 7%, and after 5-year tenure one can get a 7.5% interest rate. Note these returns are paid annually.

Kisan Vikas Patra (KVP)

If you are a farmer or you are looking for a safe investment option Kishan Vikas Patra will help you to get a 7.5% interest rate on your investment so that you too can achieve your goals. The minimum investment amount is Rs 1000 and and minimum investment amount is infinite. This means you can invest as much as you want. Your investment amount will be doubled if you invest for 9 – 10 years. Do you know what one of the best parts is that 3 adults can open a joint account. Note that interest is taxable so you need to pay tax on it.

Senior Citizens Saving Schemes ( SCSS )

If you are a senior citizen and you are worried about your retirement and future expenses. Don’t worry senior citizen saving schemes will help you to have a peaceful retirement. In order to get the benefit of the Senior Citizen Saving Scheme your age must be a minimum of 60 years or if you are at the age of 55 and you are voluntarily retired within 1 month you can apply for senior citizen saving schemes.

So that you can also get the benefit. One can open an individual or with the help of your spouse, and one can open a joint account or multiple accounts according to your requirements. But all that amount of investment which you have will not exceed more than 30 lacs. The maturity period of the Senior Citizen Saving Scheme is 5 years one can get an interest rate of 8.2% which is a fantastic return.

The minimum investment amount is Rs 1000. In the first two years, you will have to pay a 1.5% charge and after 2 years 1% will be deducted as soon as the five-year tenure is completed. You can further extend for more than 3 years after maturity and the best part of the Senior Citizen Saving Scheme is you are qualified to get the benefit of section 80c if your interest rate goes over 50000 in 1 year in your senior citizens saving schemes then you have to pay tax on it.

Public Provident Fund ( PPF )

In public provident fund is 15 years which means if you are looking for a pension plan or retirement plan. PPF can be the go-to option for you the best part is that you get 7.1% annual interest. I know this is not a huge return but hold on and read further. There is no age bar one can start with a minimum amount of rupees 500 and go up to a maximum. If you want you can open a minor account also.

After the maturity of 15 years if you want you can extend for 5 years and on top of that if you want then also you can extend for 5 years. That means you can extend it up to 25 years. Also, there is an exception case where if you open an account after 5 years then you can withdraw a partial amount but if you lie in the following below case then only you can get this benefit.

1. Account Closure
2. Higher Education
3. Life-threatening illness
4. NRI

When you invest when your investment duration is from 2nd year to 5 years you can get the loan facility as well and you get text benefit under section 80c so that means don’t have to pay tax on your interest but you need to show your interest on Income Tax although it is not taxable.

National Saving Certificate (NSC)

The national saving certificate maturity period is 5 years and you will get 7.7% which means one has to invest a minimum investment of rupees of 1000 and there is no cap on the maximum amount you can invest as much as you want. One can open individual, and 3 adult joint accounts. If someone whose age is above 10 years then they can buy NSC or if the minor is less than 10 years any guardian can buy on behalf of that minor. One can avail of the tax benefit under section 80c TDS. Do you know you can use NSC as collateral in the loan.

Sukanya Samriddhi Yojana (SSY)

The Sukanya Samriddhi Yojana scheme is to help Indian girl children. You can get an 8% interest rate on that. The time period is 15 years. Minimum 250 rs to maximum 1.5Lakh every year. What the best about this girl child scheme is the maturity amount is tax-free according to section 80 c. Maturity can be at the age of 21 years or 18 years if the girl is going to marriage or wants money for higher education then she can withdraw her amount.

The girl child should be less than 10 years old. Note that 1 girl child can open 1 account. Maximum 2 girl child 2 account from one family. If they are twins or triplets in that case open 2 or 3 accounts. See to it that if in the financial year, the minimum deposit is not done one should have to pay the penalty of Rs 50. After 18 years girl can withdraw 50% of the investment amount.

Post Office Savings Schemes Are Safe?

Yes post office savings schemes are safe because they are backed by the government. The other best part is that the post office savings schemes provide you with a fixed amount of interest rate which will help you to get an idea of how much your wealth will grow in the future.

FAQ’s

I hope you like the post office savings schemes. If you like don’t forget to share because sharing is caring. If you have any queries regarding post office savings schemes you can comment below. Or if you want to know other investment options comment below I will try to make it.