The post office saving scheme is much better than that of the bank as it returns a good amount of money and you also get a security check from the government authorities of India. There were many schemes under the branch of the India post where an individual can invest their money and after some time their money will get doubled.
Here are the details of the most beneficial schemes of the Indian post office
The post office time deposit scheme: in the post office time Deposit scheme an individual can invest money for a period of 1 to 3 years and it gives a yearly interest of 5.5 % to its investors. The money of the investors who have invested in it doubled after a period of 13 years.
Post office savings schemes
| Scheme | Interest Rate | Minimum Investment | Maximum Investment | Eligibility | Tax Implications |
| Post Office Savings Account | 4% per annum (p.a.) | –Rs 20 –Non-cheque facility – Rs 50 | No limit | Resident Indian, minor and majors | Tax-free interest up to Rs 50,000 from the financial year 2018-19 |
| Post Office Time Deposit Account (TD) | First year – 5.5% p.a. Second year – 5.5% p.a. Third Year – 5.5% p.a. Fourth Year – 6.7% p.a. | Rs 200 | No limit | Individual | Tax benefits up to 5 years under section 80C on deposits |
| Post Office Monthly Income Scheme Account (MIS) | 6.6% per annum payable monthly | Rs 1,500 | For one account holders – Rs 4.5 lakh Joint account holders – Rs 9 lakh | Individual | Interest earned is taxable and no deduction under Sec 80C for deposits made. |
| Senior Citizen Savings Scheme (SCSS) | 7.4% p.a. (Compounded annually) | Rs 1,000 | Maximum deposit over the lifetime allowed at Rs 15 lakh | Individual of age> 60 years or age >55 years who have opted for VRS or superannuation | – Tax benefit under section 80C for deposits – TDS to be deducted on interest earned for more than Rs 50,000 p.a. |
| 15-year Public Provident Fund Account (PPF) | 7.1% p.a. (Compounded annually) | Rs 500 per financial year | Rs 1.5 lakh per financial year | Individual | Tax rebate under section 80C for deposits (maximum Rs 1.5 lakh p.a.) |
| National Savings Certificates (NSC) | 6.8% p.a. (Compounded annually) | Rs 100 | No limit | Individual | Tax rebate under section 80C for deposits (maximum Rs 1.5 lakh p.a.) |
| Kisan Vikas Patra (KVP) | 6.9% p.a. (Compounded annually) | Rs 1,000 | No limit | Individual (Adult) | Interest is taxable but no tax on the amount received on maturity |
| Sukanya Samriddhi Accounts | 7.6% p.a. (Compounded annually) | Rs 1,000 per financial year | Rs 1.5 lakh per financial year | Girl Child – up to 10 years from birth and one additional year of grace | Investment (up to Rs 1.5 lakh exempt under Section 80C), interest and amount received on maturity is tax free |
Post office saving account – if someone invests money in this scheme then it takes around 18 years for their money to get doubled and it gives a yearly interest of 4% only.
Post office MIS scheme – if someone invests money in this scheme then their money gets doubled within a period of 10.91 years and it gives a yearly interest of 7.4%.
Post office senior citizen saving scheme – in this scheme, the money of the investors gets doubled within a period of 9.73 years and gives a yearly interest of 7.4%.
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