Which savings scheme is best in post office?

Today when no scheme is giving good returns, the post office can be your best option. Post office saving scheme is not only giving the citizens good returns but also a secured investment option. 

Banks' fixed deposit interest rates are going down. People believe that it's no good to keep money in banks. What you don't know is that the post office saving scheme is much better than corporate banks.

There are 1.54 lakh post offices across the country where the saving scheme is operated. One of the beneficial post office saving schemes is PPF. Currently, PPF is the only secured investment option if you are looking for long term benefits. 

Here are some amazing post office saving schemes that you should look into.

Best post office saving scheme

When talking about investing the money we tend to ignore the Indian Post office. The ignorance is so much that we do not even try to know about their schemes. We have come up with some of the best saving schemes which will benefit you in the long run.

Sukanya samridhi yojana

If you have a daughter at home this is the best saving scheme that you can plan for them. Sukanya Samridhi Yojana is specially dedicated to financially supporting and strengthening girl children.

A girl child who is below the age of 10 years can get benefit from it. This account should be opened and operated by either parents or guardians. In the Sukanya Samridhi yojana you can make a minimum deposit of Rs 250 to Rs. 1.5 lakhs in one financial year. 

Currently, Sunkanya Samridhi Yojana is giving a return of 7.6% per annum. In this saving scheme, interest is calculated annually and compounded on a yearly basis. 

The parents can handle the account till the girl child is below the age of 18 years. The account can be opened for a period of 15 years.

National savings certificate (NSC)

You can open or take an NSC for a period of 5 years. The minimum amount you can deposit is Rs. 1000. There is no limitation on the maximum deposit amount. With NSC you get an interest rate of 6.8% per annum. 

The interest amount is paid at the time of maturity. The interest in NSC is compounded annually. You are free to have a number of os accounts under this scheme. 

There is also a policy that allows you to transfer the NSC certificate to any individual, banks, finance company, government agencies, companies and others.

Public provident fund (PPF)

PPF is one of the best saving schemes by the Indian Post office. Currently, a PPF scheme gives you way more return than fixed deposits at any bank. 

The maturity period of a PPF account is of 15 years. It can be exceeded by 5 more years. You can deposit a minimum of Rs. 500 to Rs. 1.5 lakh in one financial year. 

According to Income Tax rules, any deposit made under the PPF scheme is tax-free. Even the interest you gain on your PPF account is tax-free. Interest on the PPF account is compounded annually.

senior citizen savings scheme (SCSS)

It is a government-sponsored retirement account that requires you to make a single lump-sum deposit. The deposit can be somewhere between Rs.1,000 and Rs.15 lakh. The system has a 7.4 percent annual interest rate. This account is only available to those who are over the age of 60.

Retired civilian workers between the ages of 55 and 60, as well as retired military personnel between the ages of 50 and 60, can open the account if they spend their retirement benefits within one month of receiving them.

The SCSS scheme has a maturity period of 5 years. 

eligibility required to open a savings scheme in post office

There are some basic eligibility requirements for opening a savings account in the post office. You must fulfil these criteria to be eligible to hold a post office account.

  • Any individual who is above the age of 18 years can open or invest in a savings scheme in the post office.

  • If you are opening on the behalf of a minor then in that case the guardian must be 18 years or above.

  • You must be an Indian Citizen.

  • A maximum of 2 to 3 people can open a joint account in the post office.

Frequently asked questions (faqs)

What is the maturity time of a ppf account?

The maturity date of a PPF account is counted as 15 years from the date of opening the account.

Can I open a ppf account for my child?

Yes! You can open a PPF account of your son or daughter on their behalf as their guardian. 

Is there a facility to name nominees in the post office savings scheme?

Yes! You can put the names of your family members as a nominee. For this, you will have to mention the name with a signature in the nominee section of the savings scheme form.

Can I open a Scss joint account with my spouse?

The SCSS account policy allows you to open a joint account with your husband or wife. 

Is there a Tax Rebate on SCSS account in the Post Office?

Yes! There is a tax rebate on the SCSS account for interests incurred below Rs.40000. For the interest amount above Rs. 40,000 on your SCSS account you will have to pay TDS.