Post Office Saving Schemes

India Post handles Post Office Saving Schemes, which was started to inculcate the habit of saving money in Indians. This Saving scheme provides Risk-free returns. Various Post Office Saving schemes are exempt from taxes under 80 C. There are almost 1.54 lakh post offices in our country. Here in this article, we are going into detail about each scheme provided under post office saving schemes.

Here we will see how much amount of interest is earned on different Post office saving schemes

Type of Investment	Amount Invested	Maturity amount
1 Year Time Deposit	Rs 1,00,000	Rs 1,05,614
2 Year Time Deposit	Rs 1,00,000	Rs 1,11,228
3 Year Time Deposit	Rs 1,00,000	Rs 1,16,842
5 Year Time Deposit	Rs 1,00,000	Rs 1,34,350
Monthly Income Scheme	Rs 1,00,000	Rs 1,33,000 (550/month)
National Saving Scheme	Rs 1,00,000	Rs 1,38,949
Kisan Vikas Patra	Rs 1,00,000	Rs 2,00,000
SCSS	Rs 1,00,000	Rs 1,37,000( 1850/Quarter)
Recurring Deposit	Rs 60,000 (1000/month)	Rs 69,698

This data is based on the interest rates which are applicable as on today. Interest rates are regulated every quarter and change very frequently.

Schemes under Post Office Saving Schemes

Post Office Savings Account:

The minimum Deposit for opening an account is Rs 500. The interest rate earned on the deposit of a savings account is 4% per annum. One can open an Account as a single or joint owner. Account-holders can avail cheque book, ATM Card, e-banking, and mobile banking services after filling up the form.

National Savings Certificate (NSC):

One can invest as minimum as Rs 100 and there is no limit for maximum investment. Investments up to Rs 1.5 lakh are exempted from taxes under 80 C. The tenure of this savings scheme is 5 years. The interest rate as of today is 6.8% per annum. In this scheme, interest is reinvested and compounded annually, the amount which is invested with interest earned is only paid out at maturity. One can invest in NSC as a joint holder and an even amount can be invested for the minor with the guardian.

Kisan Vikas Patra (KVP)

The basic fundamental principle of this savings scheme is that the invested amount gets doubled within the given interval of time. One can invest as minimum as Rs 1000, there is no limit for maximum investment.Tenure of the investment changes with the change in interest rates. The current interest rate is 6.9% per annum, interest is compounded annually. Current tenure is 124 months (10 years & 4 months).

Post Office Time Deposit (TD)

One can invest as minimum as Rs 200 and there is no limit for maximum investment. Investments up to Rs 1.5 lakh are exempted from taxes under 80 C under this scheme. In this scheme interest earned on the investments is paid to the investor at the end of the year, interest gets compounded every quarter. There are 4 tenures available and there are different interest rates applicable.

As on 10 July 2023

Tenure	Interest Rate
1 year	5.5%
2 years	5.5%
3 years	5.5%
5 years	6.7%

Post Office Monthly Income Scheme (MIS)

One can invest up to Rs  4.5 lakhs as a single holder and Rs 9 lakhs in a joint account. In this savings scheme, interest is paid to the investor every month. As of today the interest rate earned on the investment under MIS is 6.6% p.a. This is very helpful for the person who wants monthly fixed income. Premature closure before 1 year is not allowed. After one year one can close the account by paying up penalties.

Post Office Recurring Deposit Account

This investment scheme is for those who want to save a piece of their monthly earnings. One has to deposit a fixed amount every month. The rate of Interest as on today is 5.8%, interest gets compounded quarterly. The tenure of this recurring deposit is 5 years, but one can take out his/her investment after 3 years at a rate of interest of 4% (Saving account rate). Also one can avail 50% of the loan of the amount deposited after 12 months of monthly deposit.

Senior Citizen Saving Scheme (SCSS)

This scheme is available for senior citizens having age more than 60. The tenure of this investment is 5 years and one can exit prematurely by paying the amount as a penalty. Between 1 to 2 years, 1.5% of the fund is charged as a penalty. After 2 years, 1% is charged.
Under certain conditions, a person of age between 55-60 can avail of this saving scheme. Condition is that the person should have retired under the VRS category. He/she has to open an SCSS account within 1 month of availing retirement benefits, also the investment amount shouldn’t go beyond the retirement fund.

Sukanya Samriddhi Account

Parents or guardians of any girl child up to 10 years of age can open an account in the child’s name. Tenure of the investment is 21 years or just before or after the marriage  of a girl child (1 month before or 3 months after), after 18 years of age of a girl. One has to deposit a minimum of Rs 250 in a financial year and a maximum of Rs 1,50,000 in a financial year. The current interest rate is 7.6% and this scheme is fully exempted under 80 C. Maximum 2 accounts are allowed for a family of two daughters. Partial withdrawal up to 50% is allowed when a girl turns 18 in order to meet her expenses related to higher studies.

Public Provident Fund (PPF)

The minimum investment is Rs 500 in a financial year and a maximum of up to Rs 1,50,000. Investments made under this scheme are exempted under 80 C up to Rs 1,50,000 in a financial year. The tenure of an account is for 15 years. One can avail loan in between. The current interest rate on this saving scheme is 7.1%. Interest is compounded every year.

Post Office Savings schemes are best for those who want to save money and earn fixed interest and don’t want to deal with the uncertainty of the equity markets.