Did you know you can choose from a variety of options for keeping your money in the post office? India Post, which operates a network of more than 1.5 lakh post offices across the country, offers nine options under its small savings scheme portfolio. From savings to fixed deposit and recurring deposit, the post office today offers several types of investment options to the retail customer. These schemes include the retirement planning-focussed Public Provident Fund (PPF), the tax-saving five-year fixed deposit and Senior Citizen Savings Scheme. For the current quarter, ending on March 31, the government provides interest at the rate of 4-8.7 per cent on investment or deposit held in these small savings schemes, according to India Post's website - indiapost.gov.in.
Here's a comparison of the interest rate and investment limits applicable to these small savings schemes (including Public Provident Fund):
| Small savings scheme | Interest rate | Minimum amount required for opening account | Maximum investment allowed |
|---|---|---|---|
| Savings account | 4% | Rs 20 | |
| Five-year recurring deposit account | 7.30% | Rs 10 per month | No limit |
| One-year time deposit (fixed deposit) account | 7% | Rs 200 | No limit |
| Two-year time deposit (fixed deposit) account | 7% | Rs 200 | No limit |
| Three-year time deposit (fixed deposit) account | 7% | Rs 200 | No limit |
| Five-year time deposit (fixed deposit) account | 7.80% | Rs 200 | |
| Monthly income scheme | 7.30% | Rs 1,500 | Rs 4.5 lakh |
| Senior citizen savings scheme (SCSS) | 8.70% | Rs 1,000 | Rs 15 lakh |
| 15-year public provident fund | 8% | Rs 500 | Rs 1.5 lakh per financial year |
| National savings certificate (NSC) | 8% | Rs 100 | No limit |
| Kisan Vikas Patra (KVP) | 7.70% | Rs 1,000 | No limit |
| Sukanya Samriddhi | 8.50% | Rs 1,000 | Rs 1.5 lakh per financial year |
| (Source: indiapost.gov.in) | |||
Out of these small savings schemes, investment in the five-year term deposit (fixed deposit), Senior Citizen Savings Scheme (SCSS), 15 year Public Provident Fund and National Savings Certificates (NSC) qualifies for income tax benefit under Section 80C of the Income Tax Act.
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