Post Office Savings Schemes: Earn Higher Interest by Investing in the Name of Your Wife and Mother
Many types of savings schemes have been launched by the government, banks, and various financial institutions in the country, offering benefits through monthly or annual returns, with options ranging from small to large deposit amounts. It is important to understand the interest rates associated with each savings scheme before investing. Here, we provide information about some of the post office schemes where you can earn more interest by making deposits.
These schemes cater to different groups and needs. For example, the Sukanya Samriddhi Yojana is designed for girls, the Mahila Samman is targeted at women investors, the Senior Citizen Savings Scheme is for the elderly, and the Public Provident Fund (PPF) is aimed at long-term investors. Additionally, there are other savings options like Kisan Vikas Patra, National Savings Certificate, and short-term schemes such as Time Deposit and Recurring Deposit for those seeking short-term investments.
Government Reviews Interest Rates Quarterly
The government reviews the interest rates of small savings schemes every quarter. According to a press release issued by the Finance Ministry in September 2024, the interest rates for small savings schemes in the third quarter of the financial year 2024-25 (October to December) remain unchanged from the second quarter (July to September). Here are the interest rates for some key small savings schemes for this quarter:
Senior Citizen Savings Scheme (SCSS)
SCSS is a government scheme designed for senior citizens and retired individuals. An account in SCSS can be opened with a minimum of ₹1,000, with a maximum limit of ₹30 lakh for multiple accounts. For the October-December quarter, the scheme offers an annual interest rate of 8.2%, making it an attractive option for retirees.
5-Year Post Office Time Deposit
Investments in the 5-year post office time deposit are eligible for deductions under Section 80C of the Income Tax Act, 1961. The minimum investment required is ₹1,000. For the October-December quarter, this scheme provides an interest rate of 7.5% per annum.
National Savings Certificate (NSC)
NSC is another government scheme that offers fixed returns and tax benefits under Section 80C. The scheme matures after five years from the date of deposit. For the current quarter, NSC provides an interest rate of 7.7% per annum. The interest is compounded annually and is paid at maturity.
Kisan Vikas Patra (KVP)
KVP is a low-risk savings scheme offering guaranteed returns at a fixed interest rate. The amount invested doubles in 115 months (9 years and 7 months). For the October-December quarter, the interest rate for KVP is 7.5% per annum, compounded annually.
Sukanya Samriddhi Yojana (SSY)
SSY is a savings scheme aimed at parents of girl children, providing tax benefits under Section 80C. The interest earned is tax-free under the Income Tax Act. The account matures when the girl turns 18 years old. For the October-December quarter, the interest rate on SSY is 8.2% per annum, offering excellent returns for long-term savings.
