India Post provides several deposit options for investors, commonly known as post office saving schemes. Presently, the government provides 9 post office saving schemes. These nine small saving schemes include Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Post Office Time Deposit for a 5 Year Term and Senior Citizen Savings Scheme (SCSS). Besides, the post office also provides the facility of opening a savings account with a minimum deposit of ₹500. The government keeps revising the interest rates applicable to these small savings schemes from time to time.
Here are the interest rate on various small savings schemes are as under:
1) Post Office Savings Account: 4% interest rate annually
You can also open a savings account with the post office, which is similar to savings accounts opened with banks. India Post also allows you to transfer money in your post office savings account online.
2) Post Office Time Deposit Account
You can also open time deposits as a post office saving scheme for 1, 2, 3 and 5 years of tenure. It is similar to fixed deposits offered by banks. Post office term deposits of 1-3 years gives an interest rate of 5.5%.The five-year term deposit gives 6.7%.
3) 5-Year Post Office RD
With small monthly investments, these RD accounts offer lucrative interest rates. This recurring deposit scheme offered by post offices will get new investors 5.8%.
4) Senior Citizen Savings Scheme (SCSS)
Investors who are 60 years old can deposit up to ₹15 lakh over their lifetime in a Senior Citizen Savings Scheme to earn regular interest income. This has a lock-in period of 5 years. The senior citizens scheme gives 7.4%.
5) Post Office Monthly Income Scheme
You can invest a maximum of ₹4.5 Lakh individually and ₹9 Lakh jointly in post office MIS scheme. MIS allows investors to generate a steady monthly income, and gives an interest rate of 6.6%.
6) National Savings Certificate (NSC)
National Savings Certificate has a lock-in period of 5 years. This will fetch 6.8% interest
7) Public Provident Fund (PPF)
The popular tax, long-term savings scheme, which matures in 15 years. Nonetheless, investors can avail partial withdrawal after 5 years. A minimum deposit of ₹500 per year is required to keep the account active. This will fetch 7.1%.
8) Kisan Vikas Patra (KVP)
The Kisan Vikas Patra (KVP) will now mature or double in value in 124 months giving an interest rate of 6.9%.
9) Sukanya Samriddhi Yojana (SSY)
The popular girl child savings scheme Sukanya Samriddhi Yojana account will earn an interest rate of 7.6%. A maximum of 2 accounts is allowed for a household for two daughters individually. Once the child reaches 21 years of age, she is eligible to claim the maturity amount.
