Post Office Savings Schemes: Check out THESE top 5 plans with better interest rates than most bank FDs!
Post office savings schemes: The government revises rates of small savings schemes, including post office plans, every three months. Interest rates were left unchanged for the April-June 2024 quarter for these small savings schemes. Despite no increase in rates of these savings instruments, these post office schemes are still giving better returns than most bank fixed deposits (FDs), especially those by public sector banks.
Post-office savings schemes give investors many options with interest rates up to 8.2%. Most of these post-office schemes offer tax benefits also under Section 80C of the Income Tax Act. It is, however, suggested that investors should carefully evaluate the tax implications of these post office savings schemes before making investment decisions. Here we will discuss various features, tenures and returns of top 5 post-office savings schemes.
Also read: PPF Golden Era: THESE investors turned Rs 1 lakh annual investment to Rs 37 lakh in 14 years!
Senior Citizen Savings Scheme (SCSS):
Senior Citizen Savings Scheme is backed by the Government of India. Senior citizens residing in India can open an account and invest a lump sum amount in the scheme. They can open an account, individually or jointly, and get regular income along with tax deduction benefits.
Interest Rate: 8.2% per annum, effective January 1, 2024.
There shall be only one deposit in the account in multiple of Rs 1,000 and the maximum amount must not exceed Rs 30 lakh, according to the India Post website.
Kisan Vikas Patra:
Kisan Vikas Patra is a savings certificate issued by the Indian government. The scheme offers a fixed rate of interest and guaranteed returns. There is no tax deduction benefit available.
Interest Rate: 7.5%
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