Top 5 best Post Office Savings Schemes In 2024: You should know

Post Office Savings Plans are a good way to make risk-free investments. India has around 154,000 post offices implementing these investment schemes. These investments offer high interest rates and also provide tax benefits under Section 80C. First of all, they benefit from the sovereignty guarantees of the Indian government. Here are the Top 5 best post office savings schemes in 2024.

1. Sukanya Samriddhi Yojana SSY

The scheme was launched under the Beti Bachao Beti Padhao Yojana and aims at economic security and empowerment of women and girls. This scheme, part of the broader range of Post Office Savings Schemes, The minimum investment period is 15 years and the maturity period is 21 years. The minimum investment amount in SSY is Rs 250 per financial year and the maximum is Rs 1.5 million. A maximum of two girls per family can open an account. If you are a minor, your parent or guardian can open an account. The interest rate of this system is 8.2 times. SSY accounts are eligible for a deduction of up to Rs 1.5 million under Section 80C of the Income Tax Act in addition to exemption from interest and maturity charges.

2. Senior Citizens Savings Scheme Account (SCSS)

Anyone over the age of 60 can open a Senior Citizens Savings Scheme (SCSS) account through the post office. However, these accounts can be opened by retired civil servants over the age of 55 and veterans over the age of 50. Part of the Post Office Savings Schemes, The minimum investment required is Rs 1000 and the maximum investment is Rs 15 lakh. The interest rate is also very reasonable at 8.2%.

This program is specially designed for the country's senior citizens to help them live comfortably after retirement. Retirees can earn interest on their investments every three months. The government supports this plan, so the risks are minimal.

3. Kisan Vikas Patra (KVP)

The Kisan Vikas Patra (KVP) is a certificate available under the Post Office Savings Schemes that doubles the investment amount every 10 years and 4 months. Acceptable denominations are Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000. The minimum investment amount is Rs 1,000, but there is no upper limit. KVP certificates are transferable and can be authenticated to third parties. It is relatively liquid as it can be converted into cash after two and a half years of investment. However, KVP is fully taxable.

4. Post Office Monthly Income Scheme

The Post Office monthly income system provides investors with the opportunity to obtain a fixed income. As part of the Post Office Savings Schemes, The minimum investment amount is Rs. 1,500, individuals can invest up to Rs. The limit for a joint account is Rs 9,00,000 while the limit for a joint account is Rs 9,00,000. 1.5 million. However, the interest earned is taxable and does not qualify for relief under Section 80C. Tax Deducted at Source (TDS) applies on interest exceeding Rs. 40 thousand rupees with an annual interest of 7.4%, and 50 thousand rupees for senior citizens.

5. Public Provident Fund (PPF)

The Public Provident Fund (PPF) is a key option among Post Office Savings Schemes for building a retirement corpus. With an interest rate of 7.1% and a fixed term of 15 years, PPF allows contributions starting from Rs. 500 up to Rs. 1.5 million per year. Contributions can be made either annually or monthly. Additionally, under Section 80C of the Income Tax Act, investors can claim a tax deduction of up to Rs. 1.5 million per financial year.

Final Words

when considering the best post office savings schemes, it's essential to align your choice with your financial goals and needs. Each scheme offers unique benefits: the Sukanya Samriddhi Yojana (SSY) excels in securing the future of young girls with its high interest rate and tax advantages; the Senior Citizens Savings Scheme (SCSS) provides a reliable income stream for retirees; the Kisan Vikas Patra (KVP) is ideal for those seeking a long-term investment with guaranteed doubling of their amount; the Post Office Monthly Income Scheme offers a fixed income with periodic payouts; and the Public Provident Fund (PPF) is a robust option for long-term retirement savings with attractive tax benefits.

Ultimately, the best scheme depends on your specific financial situation and goals. Assess your priorities—whether it’s building a corpus for the future, securing steady income, or saving for a child's education. Each scheme’s features, interest rates, tax implications, and investment horizons should be carefully considered. By choosing the scheme that best fits your needs, you can make the most of the post office’s reliable and government-backed savings options.

FAQs

Q. What is the 5 year scheme of post office?

A. Interest rate on 5-year post office National Savings Certificate (NSC) small savings scheme: Currently, National Savings Certificate (NSC), a government-guaranteed small savings scheme, grows your money at 7.7 per cent per annum compounded annually, and comes with a maturity period of five years.

Q. Which post office scheme will double money?

A. The Post Office scheme that doubles your money is the Kisan Vikas Patra scheme. It also guarantees returns. This is a type of saving scheme that is backed by the Indian Government. As per this scheme, your money is doubled within a period of 115 months, i.e., 9 years and 7 months.

Q. Which post office scheme has the highest interest rate?

A. The top Post Office Fixed Deposit interest rate is 7.50% for deposits with a maturity period of 5 years. 

Q. What is the interest on 9 lakh mis in post office?

A. If you have a single account and you make a one-time investment of Rs nine lakh, then at 7.4 per cent interest rate, you will get a monthly income of Rs 5550. However, if you have a joint account and make a one-time investment of Rs 15 lakh, your monthly income will swell to Rs 9250.

Also Read: ITR filing 2024-25: Important documents for filing tax return