Post Office savings schemes interest rate: If you are looking for safe and guaranteed returns, you might consider exploring the Post Office Savings Schemes. Among the various types of accounts and investment schemes available at designated post office branches across the country, certain certificate schemes, also known as Certificate of Deposit (CoD) schemes, stand out.
So, what are these CoD schemes? These CoD schemes include – Kisan Vikas Patra, the NSC, and the Mahila Samman Certificate.
As the June quarter is about to finish, these certificate investment plans will give interest rates ranging from 7.5-7.7%, according to the India Post portal, indiapost.gov.in; however, each of the three has its own set of features. Here we will understand how an investor can achive the target of Rs 2 lakh with these schemes.
So, let’s explore – the Kisan Vikas Patra, the NSC, and the Mahila Samman Certificate in this article.
Read More: Fixed deposits: Which bank is offering highest FD interest rates post RBI bulk deposit rule change?
Kisan Vikas Patra
Kisan Vikas Patra (KVP) is one of the most popular savings options, ideal for those seeking relatively short-term savings solutions.
This scheme is offering an attractive interest rate of 7.50% for the January–March quarter. Furthermore, the interest rates for KVP are compounded annually.
You can start investing in KVP with just Rs 1,000 and can encash your investment after a period of 2.5 years. However, it’s important to note that KVP does not offer any tax benefits.
As the interest rate for KVP compounds annually, and the amount invested doubles in 9 years & 7 months, investing Rs 1 lakh will get you around Rs 2 lakh.
Read More: Mutual funds industry adds 81 lakh new investor accounts in April-May FY25
National Savings Certificate or NSC
The National Savings Certificate (NSC) is mostly considered by those investors who are seeking stability and attractive returns. With an impressive interest rate of 7.70% for the January-March quarter, NSC offers an enticing opportunity to grow savings.
You can start investing in NSC with a minimum investment of Rs 1,000. NSC doesn’t deduct Tax Deducted at Source (TDS), so you get to enjoy full returns.
Furthermore, NSC offers substantial tax benefits, so you can claim deductions up to Rs 1.5 lakh under Section 80C of the Income-tax Act. So, with the current interest rate of 7.70% and maturity period of five years, if you invest Rs 1 lakh into NSC, it can become roughly around Rs 1.44 lakh.
Read More: How to improve your credit score? Know it from experts
Mahila Samman Certificate
“Mahila Samman Savings Certificate” was launched by the Department of Economic Affairs, Ministry of Finance to provide financial security to every girl and woman in India. The scheme offers attractive and secured investment options to all girls and women.
You can deposit a minimum of Rs 1,000 and any amount in multiples of Rs 100 up to a maximum of Rs 2,00,000. This scheme offers an attractive fixed interest rate of 7.5% compounded quarterly, with flexibility in investment. The scheme matures after two years.
With the current rate of interest and maturity period, an investment of Rs 1 lakh into the scheme will give you around Rs 1.16 lakh.
