Post Office Savings Schemes (POSS) is a secure and popular investment option in India, providing guaranteed returns and government-backed security. These schemes cater to different financial goals, whether you’re saving for retirement, children’s education, or simply building wealth. In this blog, we’ll explore the top 10 Post Office Saving Schemes that offer attractive interest rates, tax benefits, and safe investment options.
10 Best Post Office Saving Scheme
Here are the top 10 post office saving schemes in India;
1. Post Office Savings Account (SB)
The postal service offers a Post Office Savings Account (SB), which allows individuals to deposit money and earn interest.
| Factors | Details |
| Interest Rate | 4.00% |
| Maturity Period | No fixed maturity |
| Tax Benefits | Interest up to ₹10,000 exempt under Section 80TTA |
| Eligibility | All Indian citizen |
Deposits & Withdrawal
All deposits/withdrawals must be in whole rupees only.
- Minimum deposit amount: Rs. 500 (subsequent deposits not less than 10 rupees)
- Minimum withdrawal amount: Rs. 50
- No maximum deposit limit
- No withdrawal will be permitted that reduces the minimum balance below Rs. 500
- If the account balance is not raised to Rs. 500 by the end of the financial year, Rs. 50 will be deducted as an Account We will automatically close the account if the balance becomes zero, and a Maintenance Fee will apply.
2. National Savings Recurring Deposit (RD)
A National Savings Recurring Deposit (RD) is a savings scheme that allows individuals to deposit a fixed amount regularly and earn interest on it.
| Factors | Details |
| Interest Rate | 6.70% |
| Maturity Period | 5 years |
| Tax Benefits | Interest is taxable |
| Eligibility | All Indian citizen |
Loan
- After the depositor deposits 12 installments and continues the account for 1 year without discontinuation, they may avail themselves of a loan facility for up to 50% of the balance credit in the account.
- The loan can be repaid in one lump sum or equal monthly installments.
- The interest on the loan will be 2% plus the applicable RD interest rate.
- The interest will be calculated from the withdrawal date to the repayment date.
- If you do not repay the loan by the maturity date, we will deduct the loan plus interest from the maturity value of your RD account.
Note: A loan can be taken by submitting a loan application form with the passbook at the compost office office.
3. National Savings Time Deposit (TD)
A National Savings Time Deposit (TD) is a fixed deposit scheme where individuals can invest a lump sum for a specified period at a predetermined interest rate.
| Factors | Details |
| Interest Rate | 6.9% – 7.0% |
| Maturity Period | 1, 2, 3, or 5 years |
| Tax Benefits | 5-year deposit qualifies for Section 80C benefit |
| Eligibility | All Indian citizen |
Deposits
- Account types are available for 1-year, 2-year, 3-year, and 5-year terms.
- Accounts can be opened with a minimum of Rs. 1000 and in multiples of Rs. 100. There is no maximum limit for investment.
- The bank will pay interest annually, and it will not pay additional interest on the amount of interest that the account holder has not withdrawn when it becomes due.
- The bank may credit the annual interest to the account holder’s savings account upon submission of an application.
- The investment under the 5-year term deposit qualifies for the benefit of section 80C of the Income Tax Act, 1961.
4. National Savings Monthly Income Scheme (MIS)
The National Savings Monthly Income Scheme (MIS) is a savings plan that allows individuals to invest a lump sum amount and receive fixed monthly interest payouts.
| Factors | Details |
| Interest Rate | 7.40% |
| Maturity Period | 5 years |
| Tax Benefits | Interest is taxable |
| Eligibility | All Indian citizen |
Deposit
- Accounts can be opened with a minimum of Rs. 1,000 and in multiples of Rs. 1,000.
- A maximum of Rs. 9 lakh can be deposited in a single account and Rs. 15 lakh in a joint account.
- In a joint account, all the joint holders shall have equal shares in the investment.
- Deposits/shares in all MIS accounts opened by an individual shall not exceed Rs. 9 lakh.
- The limit for an account opened on behalf of a minor as a guardian shall be separate.
5. Senior Citizens Savings Scheme (SCSS)
The government designed the Senior Citizens Savings Scheme (SCSS) to help individuals aged 60 and above deposit a lump sum and earn higher interest rates.
| Factors | Details |
| Interest Rate | 8.20% |
| Maturity Period | 5 years (extendable by 3 years) |
| Tax Benefits | Section 80C benefits up to ₹1.5 lakh; interest is taxable |
| Eligibility | Individuals aged 60 and above |
Interest
- Interest shall be payable every quarter and applicable from the date of deposit to 31st March/30th June/30th September/31st December.
- If an account holder does not claim the interest payable every quarter, they will not earn additional interest on that interest.
- You can draw interest through auto credit into a savings account at the same post office or ECS. If you have an SCSS account at CBS Post offices, they will credit monthly interest into a savings account at any CBS Post Office.
- If the total interest in all SCSS accounts exceeds Rs. 50,000 in a financial year, the authorities will tax the interest and deduct TDS at the prescribed rate from the total interest paid. However, if you submit form 15G/15H and the accrued interest is not above the prescribed limit, they will not deduct any TDS.
6. Public Provident Fund (PPF)
The government backs the Public Provident Fund (PPF) as a long-term savings scheme, allowing individuals to invest a minimum amount annually and earn interest over 15 years.
| Factors | Details |
| Interest Rate | 7.10% |
| Maturity Period | 15 years (extendable in blocks of 5 years) |
| Tax Benefits | Tax-free interest and maturity, contributions qualify under Section 80C |
| Eligibility | Open to all Indian residents |
Deposit
- The minimum deposit is Rs. 500 in a Financial Year, and the maximum deposit is Rs. 1.50 lakh in a Financial Year.
- The maximum limit of Rs. 1.50 lakh includes the deposits made in the account holder’s account and the account opened on behalf of a minor.
- Deposits can be made in any number of installments in a Financial Year, in multiples of Rs. 50, up to a maximum of Rs. 1.50 lakh.
- You can open the account with cash or a cheque. If you use a cheque, the date of realization of the cheque in the Government account will be the date you open the account or make a subsequent deposit.
- Deposits qualify for deduction under section 80C of the Income Tax Act.
7. Sukanya Samriddhi Account (SSA)
The Sukanya Samriddhi Account (SSA) encourages parents to save for the education and marriage of their girl children by offering attractive interest rates.
| Factors | Details |
| Interest Rate | 8.20% |
| Maturity Period | 21 years or until the girl’s marriage |
| Tax Benefits | Tax-free interest and maturity, contributions qualify under Section 80C |
| Eligibility | Open to all Indian residents and guardians of girl children below 10 years old |
Deposits:
- You can open the account with a minimum initial deposit of Rs. 250.
- The minimum deposit in a financial year is Rs. 250, and the maximum deposit can be up to Rs. 1.50 lakh (in multiples of Rs. 50) in a financial year, either in a lump sum or in multiple installments.
- You can make deposits up to a maximum of 15 years from the date of opening the account.
- If the minimum deposit of Rs. 250 is not made in an account in a financial year, the account shall be treated as a defaulted account.
- You can revive a defaulted account by paying a minimum of Rs before the completion of 15 years from the date of opening the account 250 plus Rs. 50 for each defaulted year.
- Deposits qualify for deduction under section 80C of the Income Tax Act.
8. National Savings Certificates (NSC)
National Savings Certificates (NSC) allow individuals to invest a lump sum and earn interest over a specified maturity period through fixed-income investment schemes.
| Factors | Details |
| Interest Rate | 7.70% |
| Maturity Period | 5 years |
| Tax Benefits | Eligible for Section 80C deduction |
| Eligibility | open to all |
Deposit:
- Minimum deposit of Rs. 1,000 in multiples of Rs. 100, no maximum limit.
- Any number of accounts can be opened under the scheme.
- Deposits qualify for deduction under section 80C of the Income Tax Act.
9. Kisan Vikas Patra (KVP)
Kisan Vikas Patra (KVP) is a savings scheme that allows individuals to invest a lump sum and double their investment amount over a fixed maturity period.
| Factors | Details |
| Interest Rate | 7.5% (doubles in 115 months) |
| Maturity Period | 115 months |
| Tax Benefits | No tax benefits |
| Eligibility | open to all |
Deposits:
- The minimum deposit amount is Rs. 1000, and it must be in multiples of Rs. 100, with no maximum limit.
- Any number of accounts can be opened under this scheme.
10. Mahila Samman Savings Certificate
The Mahila Samman Savings Certificate offers women the opportunity to invest in a lump sum and earn attractive interest rates over a fixed tenure.
| Factors | Details |
| Interest Rate | 7.50% |
| Maturity Period | 2 years |
| Tax Benefits | Tax benefits under Section 80C |
| Eligibility | Available to women and girls only |
Deposits:
- The minimum deposit amount is one thousand rupees, and it must be in multiples of one hundred rupees.
- The maximum limit for the deposit is two lakh rupees in a single account or across all accounts held by an account holder.
- You must maintain a time gap of three months between opening the existing account and opening any other account.
Conclusion
Post Office Savings Schemes are a secure way to save, with a range of plans catering to diverse financial goals. Whether you’re looking for regular income, long-term wealth creation, or tax savings, these schemes offer reliable returns. By understanding the types of post office saving schemes and their benefits, you can make an informed decision that aligns with your financial objectives.
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Frequently Asked Questions
Q. Can Monthly Income Scheme (MIS) interest be credited to a Recurring Deposit (RD) account?
A. Yes, MIS interest can be credited to a Recurring Deposit (RD) account.
Q. What are the premature encashment conditions for a post office savings scheme?
A. Premature withdrawal is allowed after one year, with a penalty depending on the scheme.
Q. Is there a tax rebate for investment in post office savings schemes?
A. Yes, investments in some schemes, like PPF and NSC, qualify for tax deduction under Section 80C.
Q. Is there any maximum limit for deposits in post office savings accounts?
A. No, there is no maximum deposit limit for a regular post office savings account.
Q. Can senior citizens claim deductions for investing in post office savings accounts?
A. Yes, under certain schemes like the Senior Citizens Savings Scheme (SCSS), deductions can be claimed under Section 80C.
Q. Can I check my post office account online?
A. Yes, post office savings accounts can be accessed online through the India Post Payments Bank (IPPB) portal.
Q. Can I transfer money from the post office to my bank account?
A. Yes, you can transfer money to your bank account using IPPB services.
Q. Can students open a post office savings Scheme?
A. Yes, students can open a post office savings account if they are 10 years old or above.
