If you’re searching for a safe and guaranteed return investment option, then India Post’s small savings schemes could be the turning point in your financial journey. With fixed returns, government backing, and various tenures, these schemes are becoming the first choice for small and middle-income investors.
Post Office Recurring Deposit – Build Corpus Gradually
The Post Office RD is a 5-year scheme offering fixed monthly savings with compound interest benefits. Currently, it gives 6.7% interest per annum, compounded quarterly. Investors can start with as low as Rs 100, and deposits must be made every month. You can also extend the RD for another 5 years after maturity. This is ideal for those looking to save consistently over a long term.
Senior Citizen Savings Scheme – Best for Retirement Income
This scheme is specifically for individuals aged 60 years and above. It offers one of the highest interest rates at 8.2% per annum, payable quarterly. The maximum investment allowed is Rs 30 lakh. It comes with a lock-in period of 5 years and can be extended for another 3 years. It’s a popular option for retirees seeking regular income.
Post Office Monthly Income Scheme – Fixed Monthly Returns
In this scheme, you invest a lump sum and earn monthly interest at a rate of 7.4% per annum. The investment limit is Rs 9 lakh for individual accounts and Rs 15 lakh for joint accounts. The maturity period is 5 years, and the amount is safe as it’s backed by the government. This is ideal for those looking for a stable monthly income.
Time Deposit and NSC – Long-Term Saving Options
Post Office Time Deposit offers interest rates ranging from 6.9% to 7.5% depending on the tenure, which can be 1 to 5 years. National Savings Certificate (NSC) is another great scheme offering 7.7% annual interest with a lock-in of 5 years. Both options qualify for tax benefits under Section 80C.