If you prefer secure, guaranteed returns on your investments, post office savings schemes remain one of the most reliable options. These government-backed schemes offer assured annual returns ranging between 7% and 8%, making them a popular choice for conservative investors.
Here’s a look at seven key small savings schemes and their latest interest rates.
1. Public Provident Fund (PPF)
The PPF is among India’s most trusted long-term savings instruments. It currently offers 7.1% interest per annum, compounded annually. Investors can deposit any amount between ₹500 and ₹1.5 lakh per year, either as a lump sum or in instalments.
The account matures after 15 years, excluding the year it was opened.
2. Sukanya Samriddhi Account (SSA)
Designed for the girl child, this account offers 8.2% per annum (effective from 1 January 2024), calculated yearly. You can invest between ₹250 and ₹1.5 lakh per financial year.
Deposits can be made any number of times, and the account matures 21 years from the date of opening.
3. Kisan Vikas Patra (KVP)
KVP offers 7.5% annual interest, compounded yearly, and the invested amount doubles in 115 months (9 years and 7 months). The minimum investment is ₹1,000, with no upper limit. The maturity period depends on the prevailing rate at the time of investment.
4. Mahila Samman Savings Certificate (MSSC)
This special scheme for women provides 7.5% annual interest, compounded quarterly. You can invest between ₹1,000 and ₹2 lakh. The eligible balance becomes payable two years after the account is opened.
5. National Savings Certificate (NSC)
NSC offers 7.7% annual returns, compounded yearly and payable at maturity. There is no maximum investment limit, and the deposit matures five years from the date of opening.
6. National Savings Time Deposit (TD)
Time deposits offer interest rates ranging from 6.9% to 7.5% per annum, depending on the tenure. The minimum lock-in periods are 1 year, 2 years, 3 years, or 5 years. There is no maximum limit on the amount that can be invested.
7. Senior Citizens Savings Scheme (SCSS)
Aimed at senior citizens, SCSS currently offers 8.2% per annum. Deposits can range between ₹1,000 and ₹30 lakh. The maturity period is five years, with an option to extend the account in blocks of three years.
Summary of Returns (as per India Post):
| Scheme | Interest Rate (%) |
|---|---|
| PPF | 7.1 |
| Sukanya Samriddhi Account | 8.2 |
| Kisan Vikas Patra | 7.5 |
| Mahila Samman Savings Certificate | 7.5 |
| NSC | 7.7 |
| Time Deposit | 6.9 – 7.5 |
| SCSS | 8.2 |
(Source: indiapost.gov.in