India Post - which is part of the Ministry of Communications has a reach of more than 1.5 lakh branches throughout the country. The interest rates available to post office small savings schemes were fixed at current levels for the quarter of July-September. These government-backed small savings schemes are currently fetching an interest rate of 4 to 7.6 per cent. Here we have covered the key points of all those 9 savings schemes with interest rates which can be availed at commercial banks and designated of branches of post offices across the country.
1. Post Office Savings Account
The savings account of the post office is a deposit scheme made accessible by the post office across India. This scheme provides a fixed rate of interest to the subscribers. For a minimum deposit amount of Rs 500, this scheme fetches an interest rate of 4.0% per annum on individual/joint accounts. One of the best things about this scheme is that if the interest earned per year is up to Rs.10,000 then it is tax-free according to the income tax regulations. The deposited money in a post office savings account can be withdrawn any time by keeping a minimum balance of Rs. 50 in the case of a standard account, and Rs. 500 in the case of a cheque facility.
2. National Savings Recurring Deposit Account
The primary goal of the scheme is to allow small investors to generate savings by investing a minimum amount of Rs.100 in order to meet their future goals. Under this scheme, one can open a single or joint account which matures after a tenure period of 5 years. Currently, one can gain an interest rate of 5.8% p.a by investing on National Savings Recurring Deposit. The interest rate is revised periodically and is compounded on a quarterly basis.
3. National Savings Time Deposit Account
The National Savings Time Deposit Scheme was declared by the central government of India in accordance with section 15 of the Government Savings Bank Act, 1873. This term deposit scheme comes with four types of tenure or maturity options. The interest rate paid on such deposits is significantly greater than the standard savings bank account. The interest rate on these accounts varies with the maturity period and one can invest from a minimum amount of Rs.100 which will fetch an interest rate of 5.5% for a deposit period of 1 year, 5.5% for a period of 2 years, 5.5% for a period of 3 years and 6.7 % for a period of 5 years.
4. National Savings Monthly Income Account
Post Office Monthly Income Scheme amongst other Post Office Small Savings Schemes which currently is providing an interest rate of 6.6 % per annum for a minimum investment amount of Rs.1000. This scheme comes with a lock-in period of 5 years and is one of the low-risk monthly income that provides steady and guaranteed returns.
5. Senior Citizens Savings Scheme Account
SCSS was introduced by the Government of India in 2004 and it comes with a goal to provide a secure and steady income for individuals above the age of 60. Senior citizens can invest from a minimum amount of Rs.1000 up to Rs.15 lakh for a tenure period of 5 years. It is amongst the most prestigious savings schemes and offers its subscribers fairly substantial returns with a current interest rate of 7.4% per annum.
6. Public Provident Fund Account
Public provident fund is a widely known investment scheme which comes with a plethora of benefits. This is a long-term investment scheme that enables individuals to generate stable returns by investing as low as Rs.500 up to a maximum of Rs.1,50,000/- in a financial year. The interest payable on public provident fund scheme is higher than the savings account or FDs provided by various commercial banks in India. Subscribers can earn an interest of 7.1 % per annum which is subject to change quarterly.
7. National Savings Certificates Account
NSC is a fixed income investment scheme backed by the Government of India. This scheme provides small to mid-income investors with a high and guaranteed returns for a minimum investment of Rs.1000/- and in multiples of Rs. 100/-. The tenure of the scheme is 5 years and the interest rate of 6.8 % is compounded annually but payable at maturity. One can also claim the benefits of 80C deductions for an investment up to Rs.1.5 lakh.
8. Kisan Vikas Patra Account
In 1988, India Post initiated the Kisan Vikas Patra as a small saving certificate scheme with an aim to deliver investors with long-term financial stability. According to the recent release, if you purchase the certificate between 1 April 2020 and 30 June 2020, you will fetch an interest rate of 6.9 % for a tenure fixed tenure period of 124 months (10 years & 4 months). You will get the maturity amount at the end of the tenure period for a minimum investment amount of Rs.1000.
9. Sukanya Samriddhi Account
Sukanya Samriddhi Yojana (SSY) was initiated as part of the Beti Bachao, Beti Padhao campaign backed by Government of India. This scheme helps parents to open a savings account on behalf of their girl child with a minimum investment amount of Rs.250 up to a maximum of Rs.1,50,000/- in a fiscal year. One can open an SSA account up to the age of 10 years only from the date of birth of the girl child. The maturity tenure is 21 years and currently, the scheme provides an interest rate of 7.6% per annum which is calculated on a yearly basis.