Check These 5 Govt-Backed Savings Schemes This Independence Day To Earn Upto 8.2% Return

Post offices are currently one of the most popular places for retirees, adults, and women to put their small savings to earn high returns. To encourage systematic saving among underprivileged sections of society, , the government has established a number of savings schemes.

Post Office Savings Bank Accounts, 5-Year Post Office Recurring Deposits, Post Office Term Deposits, National Savings Certificate (NSC), and Senior Citizens Savings Scheme (SCSS), are some of the popular govt-backed savings schemes offered through India Post Offices.

Under these schemes, you can earn up to 8.2% p.a. high-interest rates on your investments. Recently the Govt. Has revised interest rates, the new interest rates are effective from July 01, 2023, to Sept 30, 2023. These schemes are government-backed, hence, the invested amount is secure and there is a guarantee of returns upon its maturity.

1. 5-year Post Office Recurring Deposit Account (RD)

The 5-year Post Office Recurring Deposit Account or National Savings Recurring Deposit Account is an extremely well-liked savings scheme that offers high-interest rates on investments. With the help of this plan, monthly contributions can grow into a corpus five years from the beginning.

The current interest rate for post office RDs is 6.50% p.a. and is changed on a regular basis. The investment might expand because the interest is compounded four times a year. The minimum amount of Rs 100 and above the minimum in multiple of Rs 10 is required for the monthly deposit in this scheme. Individual Adults, as well as Joint Accounts, can be opened in this small savings scheme.

2. National Savings Time Deposit Account (TD)

With Post Office Time Deposit Account (TD) or National Savings Time Deposit Account, individuals looking for investment opportunities can earn up to 7.5% p.a. interest for a time of five years. There is no maximum balance or cap in this scheme, however, a minimum balance of Rs 1000 is needed to start an account.

Section 80C of the Income Tax Act of 1961 is applicable to the investment made under the five-year TD plan.

Interest rates Under TD Scheme for different periods are as follows:

• 1-yr.A/c - 6.9%
• 2-yr.A/c - 7%
• 3-yr.A/c - 7​%
• 5-yr.A/c - 7.5​%

3. Post Office Monthly Income Scheme (MIS)

Post Office Monthly Income Schemes (MIS) or National Savings Monthly Income Accounts are ideal investment choices for retirees and anyone seeking a steady stream of interest income. Regardless of the market scenario, the MIS offer a fixed rate of interest to the depositors. The current interest rate on this account is 7.4% p.a.

Individuals are allowed to open accounts under this scheme with a limit of Rs. 9 lacks, while a joint account can hold a maximum of Rs. 15 lacks at any given time. The lock-in period of these accounts is only five years.

Account closures prematurely are permitted with a penalty. But no deposit could be withdrawn prior to the end of the year following the date of deposit.

4. Senior Citizens Savings Scheme Account (SCC)

A Senior Citizens Saving Scheme (SCSS) is a government-backed retirement benefits savings scheme for individuals above the age of 60 years. SCSS offers interest on deposits at a rate of 8.2% annually. Amounts can range from Rs 1000 to Rs 30 lakh as minimum and maximum investments in this scheme.

Other than individuals over 60, retirees in the age range of 55 to 60 who have chosen the Voluntary Retirement Scheme (VRS) or Superannuation, as well as retired members of the armed forces who are over age 50 but less than 60, are also eligible to invest in this account.

The scheme allows senior citizens who live in India to invest a lump sum and get recurring income as well as tax advantages under section 80C of the Income Tax Act, 1961.

5. National Savings Certificates (NSE)

A National Savings Certificate is a savings and investment plan that can be opened by anyone who lives in India from any nearest post office.

NSE is a government savings bond that's suitable to begin a small investment. can obtain these certificates. It offers returns on investment higher than most Bank FDs.

The scheme is now providing investors with a guaranteed return of 7.7%. The interest is compounded annually and is payable at maturity. As an initial investment, you can put down as little as Rs. 1,000 or multiples of Rs. 100, and you can also increase the sum as soon as it is feasible.

According to the guidelines of Section 80C of the Income Tax Act, 1961, you may claim up to Rs. 1.5 lakh as it is a government-backed tax-saving plan.

To know more about the above-mentioned schemes, please visit indiapost.gov.in for details.