10 Best Post Office Schemes 2024 – Eligibility, Interest rate, and Benefits
Post Office Savings Schemes are government-backed investments, which come with the assurance of the government for guaranteed returns. These schemes especially cater to the masses of the country scattered across rural India. These savings policies help save a corpus for their future as well as for emergency purposes. These plans not only help achieve goals but save taxes as well. Are you looking for information about the best Post Office Savings Schemes in 2024? If so, you can get complete details of the best saving plans offered by the Indian Post Office and their rate of interest and eligibility criteria in this blog.
Table of Contents
- What is a Post Office Investment Savings Scheme?
- Benefits of Investing in Post Office Savings Scheme
- Types of post office savings schemes, India
- Post Office Savings Account
- National Savings Recurring Deposit Account
- National Savings Time Deposit Account
- National Savings Monthly Income Account
- Senior Citizens Savings Scheme Account
- Public Provident Fund Account
- Sukanya Samriddhi Account
- National Savings Certificates
- Kisan Vikas Patra
- Mahila Samman Savings Certificate
- Best 10 Post Office Scheme and Interest Rates for 2024
- How to Apply for a Post Office Savings Scheme?
- Documents Required to Buy Post Office Savings Scheme
A large population in our country lives in rural areas where financial planning isn’t really a priority. To encourage this section of society (the economically weak and downtrodden) to save a little for the future, the Indian Post Office has come up with a number of financial schemes.
Here we look at some of these best post office schemes based on the interest rate and eligibility criteria to apply for each, to help you make an informed choice for investment in the best saving plan.
In fact, some of these plans are also designed specifically for women, children, and the elderly, to help them plan a better future for themselves and be able to meet their financial goals.
Let’s take a look at some of these Indian post office tax savings schemes.
What is a Post Office Investment Savings Scheme?
The post office savings plan includes investment instruments that provide a variety of reliable and risk-free returns. There are numerous ways to open a savings account at a post office in India. These provide appealing fixed interest rates and fixed deposit policies that are set or recurring.
For investors, it is a beneficial scheme to steadily earn a fixed interest on their deposit amount over time.
Benefits of Investing in Post Office Savings Scheme
Below are some benefits of investing in Post Office Savings Schemes:
- Easy process of enrolment – It requires very limited documentation to invest in a post office saving scheme. The easy procedure involved in availing these schemes makes them easy to invest in.
- Investment friendly – It suits investors from both urban as well as rural India. And the reason behind it is the ease of enrolment and simple-to-invest schemes. Anyone looking for a risk-free investment portfolio can invest in these schemes.
- Long-term investments – Post Office schemes are long-term policies like retirement policies and they allow investors the opportunity to save for the long term. Hence, they suit well for pension and other long-term goals.
- Investors can choose from a bucket of products – The Schemes are available in a wide range depending on the various types of individuals. The government offers some beneficial small savings schemes through post offices to allow common people the opportunity to invest in them as per their requirements.
- Good interest rate – An investor under the Post Office Saving Scheme can get an interest rate ranging from 4 to 9% depending on the scheme. These schemes are risk-free and they come under the undertaking of the government of India.
- Tax exemption – Tax rebate is also available under most of the schemes u/s 80C of the Income Tax Act 1961 on the invested amount. There are some schemes which also offer tax exemption on the interest earned.
10 Post Office Savings Schemes and Interest Rates
Investors in India have access to a variety of deposit and post office savings schemes. Post Office Savings Account, Public Provident Fund, Kisan Vikas Patra, and Sukanya Samriddhi Account are just a few examples of these.
1. Post Office Savings Account (SB)
The Post Office Savings Account (SB) is comparable to any savings account offered by a retail bank. The minimum deposit amount is ₹500 and the minimum withdrawal amount is just ₹50. It offers a 4% interest rate. A savings bank account can be opened by both adults and minors. There is no maximum investment amount and a tax exemption of up to ₹10,000.
Post Office Savings Scheme Account Interest Rates, Tenure, and Tax Benefits 2024
| Type of Account | Single, Joint (up to 2 adults allowed), minor (joint account with a parent/guardian), join account with a mentally unsound person, and independent minor account over 10 years of age |
| Opening Procedure | Download the application form from the official website of the Department of Posts or collect one from a post office near you. In case of silent/inactive account for 3 years, fresh application needed |
| Nomination | Mandatory |
| Rate of Interest | 4% p.a. |
| Investment | Minimum – Rs. 500; Maximum – no limit. Minimum balance needed per month to maintain the account – Rs. 10 |
| Withdrawal | Full withdrawal possible (over Rs. 50) at a post office near you; however minimum Rs. 500 balance needed in the account for maintenance; zero-balance accounts are liable for Rs. 100 fine or permanent closure in case minimum balance not maintained for 3 years |
| Tax Exemption | Upto Rs. 10,000 lakh annual exemption allowed to investors on the interest earned under Section 80TTA of the ITA |
| Risk Involved | None |
2. National Savings Recurring Deposit Account (RD)
RD stands for Recurring Deposit, which essentially, as the name suggests, is money deposited in an account in a recurring manner. It therefore, implies that this is a post office monthly saving scheme intended to encourage regular saving and investment habits among people. The plan is designed to facilitate investments monthly and promises good returns.
Post Office Recurring Deposit (RD) Interest Rates, Tenure, and Tax Benefits 2024
| Type of Account | Single, Joint (up to 3 adults allowed), minor (joint account with a parent/guardian) and independent minor a/c over 10 years old |
| Opening Procedure | The applicant needs to open a National Savings Recurring Deposit Account at the Post Office by filling out a Purchasing Certificate Form |
| Rate of Interest | 6.7% p.a. on both single and joint a/c payable upon maturity |
| Tenure | 5 years |
| Investment | Minimum – Rs. 100; Maximum – no limit |
| Type of Investment | Monthly |
| Mode of Investment | Cash/cheque/net banking |
| Premature Withdrawal | After 3 years of opening of the a/c |
| Tax Exemption | Upto Rs. 1.5 lakh annual exemption allowed to investors under Section 80C of the ITA; interest not tax-exempted |
3. National Savings Time Deposit Account (TD)
This is another savings account that offers four account types with different maturity periods. The interest of this account is paid annually while it is calculated every quarter. Here are some features of the account:
National Savings Time Deposit Account Interest Rates, Tenure, and Tax Benefits 2024
| Eligibility | Single adult, Joint (up to 3 adults allowed), minor (guardian can open on behalf of minor), and independent minor a/c over 10 years old |
| Maturity | 1-year, 2-year, 3-year, 5-year |
| Rate of Interest | Starts at 6.9% (Max. 7.5%) |
| Investment Amount | Min. Rs 1000 and multiples of 100.
No Max. amount |
| Premature withdrawal | Minimum six months from the date of deposit |
| Tax Exemption | Investments made in five-year accounts qualify for tax deductions under Section 80C of the Income Tax |
| Risk Involved | Risk -free |
4. National Savings Monthly Income Account (MIS)
A post office savings programme called the National Savings Monthly Income Account (MIS) offers a 6.6% interest rate. The smallest investment allowed is ₹1,000. The maximum investment amount for individual accounts is 4.5 lakhs, and for joint accounts it is 9 lakhs.
National Savings Monthly Income Account Interest Rates, Tenure, and Tax Benefits 2024
| Eligibility | Single adult, Joint (up to 3 adults allowed), minor (guardian can open on behalf of minor), and independent minor a/c over 10 years old |
| Maturity | 5 years |
| Rate of Interest | 7.4% |
| Investment Amount | Min. Rs 1000 and multiples of 1000
Max. Rs. 9 lakhs (single account), Rs. 15 lakhs (joint account) |
| Premature withdrawal | Minimum 1 year from the date of deposit |
| Tax Exemption | Interest earned is taxable
No deduction is available under Sec 80C for deposits made |
| Risk Involved | low -risk |
5. Senior Citizens Savings Scheme Account (SCSS)
Any person over the age of 60 may open a Senior Citizens Savings Scheme Account (SCSS) through the post office. However, retired government workers over the age of 55 and retired military personnel over the age of 50 are also permitted to open such accounts. The required minimum investment is ₹1000 rupees, and the maximum investment amount is 15 lakhs. The interest rate, which is set at 8.2%, is also very lucrative.
The scheme is specially run for the elderly in the country to help them lead a comfortable life post retirement. The senior citizens are allowed to earn interest on the lump sum investment every quarter. The scheme has government support and therefore the risk involved is negligible.
Senior Citizen Savings Scheme Interest Rates, Tenure, and Tax Benefits 2024
| Type of Account | Single for people over 60 years old, retirees, or people 55-60 years old currently employed in a job; joint account permissible with only spouse |
| Maturity | 5 years |
| Rate of Interest | 8.2% p.a. paid every quarter on 31 March, 30 June, 30 September, and 31 December; interest auto-credit facility available to the investor’s account |
| Investment | Minimum – Rs. 1,000; Maximum – upto Rs. 15 lakh allowed |
| Account Closing | Closure allowed after 5 years of opening of the account; no interest payable if closure before 1 year since the date of opening, 1.5% deduction from principal amount for account closure between 1 and 2 years, 1% deduction between 2 and 5 years |
| Tax Exemption | Tax deductions permissible for interest below Rs. 50,000 per annum under Section 80C of the ITA, 1961 |
| Nominee Claim | Permissible in case of death of the depositor before the scheme maturity; if joint account with spouse, account can continue upto maturity |
6. Public Provident Fund Account (PPF)
With a minimum deposit of ₹500, the PPF account offers an alluring long-term investment option for Indian adults. The maximum deposit per fiscal year is ₹1.5 lakhs. A PPF account has an interest rate of 7.1%.
Public Provident Fund (PPF) Account Interest Rates, Tenure, and Tax Benefits 2024
| Eligibility | Single adult (resident Indian), a guardian can open on behalf of a minor or a mentally unsound person |
| Maturity | 15 years |
| Rate of Interest | 7.1% |
| Investment Amount | Min. Rs 500.
Max. Rs. 1.5 lakh per year |
| Premature withdrawal | Any time after the expiry of five years of the account |
| Tax Exemption | Tax exemption of up to Rs. 1.5 lakh in a FY u/s 80C of the Income Tax |
| Risk Involved | low -risk |
7. Sukanya Samriddhi Account (SSA)
A unique government programme called the Sukanya Samriddhi Account (SSA) was created in India to empower young girls. It has a 8% interest rate, a ₹250 minimum deposit requirement, and a maximum investment cap of ₹1.5 lakhs per fiscal year.
Considered the best policy for girl child, the Sukanya Samriddhi Account or SSA is backed with government support particularly for girl child in India. This post office tax saving scheme for girl child is specifically designed by the government to support the educational, marriage and other future financial expenses of girls in India.
Note that there is also a post office scheme for boy child. Among the many options, the Ponmagan Podhuvaippu Nidhi Scheme is popular; however, it is only available currently in the post office branches of Tamil Nadu and Pondicherry.
Sukanya Samriddhi Yojna Interest Rates, Tenure, and Tax Benefits 2024
| Type of Account | Single, opened by a guardian in the name of a girl child below 10 years old or for maximum 2 girl children in a family; two accounts can be opened in case of twins or triplets |
| Maturity | 15 years |
| Rate of Interest | 8% p.a.; determined by the Ministry of Finance every quarter |
| Investment | Minimum – Rs. 250; Maximum – upto Rs. 1.5 lakh per annum; can be invested in several installments or as a lump sum |
| Withdrawal | Amount can be withrawn only partially when the girl child is 18 years old; up to 50% of the balance |
| Tax Exemption | Tax deductions permissible for interest below Rs. 1.5 lakh per annum under Section 80C of the ITA, 1961 |
| Risk Involved | None |
8. National Savings Certificates (NSC)
Any post office will sell National Savings Certificates for a price starting at ₹1000. There is no upper limit, and the attractive annual interest rate of 7.75% is offered.
This is another very popular scheme that is designed to offer income tax benefits to both salaried professionals and businessmen. The main feature of NSC is that it has no maximum investment limit. Check out the other features below:
National Savings Certificates (NSC) (VIIIth Issue) Interest Rates, Tenure, and Tax Benefits 2024
| Eligibility | Single adult, Joint account (up to 3 persons) a guardian can open on behalf of a minor or a mentally unsound person, independent minor account over 10 years of age |
| Maturity | 5 years |
| Rate of Interest | 7.75% |
| Investment Amount | Min. Rs 1000 and multiples of 100
No Max. limit |
| Premature withdrawal | Not before five years (on certain conditions) |
| Tax Exemption | Tax exemption of up to Rs. 1.5 lakh in a FY u/s 80C of the Income Tax |
| Risk Involved | low -risk |
9. Kisan Vikas Patra(KVP)
Any Indian adult can open a KVP individually or jointly under the new Kisan Vikas Patra scheme, provided they have a minimum balance of ₹1,000. The offered interest rate is 7.5%.
KVP is a risk-free and fixed-rate small savings plan that allows the investor to save and accumulate wealth over time without any worry. Here are some features:
Kisan Vikas Patra (KVP) Interest Rates, Tenure, and Tax Benefits 2024
| Eligibility | Single adult, Joint account (up to 3 persons) a guardian can open on behalf of a minor or a mentally unsound person, independent minor account over 10 years of age |
| Maturity | 9 years and 7 months (Maturity period is decided by the Ministry of Finance from time to time) |
| Rate of Interest | 7.5% |
| Investment Amount | Min. Rs 1000 and multiples of 100
No Max. limit |
| Premature withdrawal | Can be closed under certain conditions |
| Tax Exemption | KVP is taxable upon maturity. There is no tax benefit under this scheme. |
| Risk Involved | low -risk |
10. Mahila Samman Savings Certificate
This is a one-time scheme available for two years, from April 2023 to March 2025. This is a risk-free scheme especially crafted for girls and women of all ages. Here are the features:
Mahila Samman Savings Certificate Interest Rates, Tenure, and Tax Benefits 2024
| Eligibility | By a woman for herself, by a guardian on behalf of a minor girl |
| Maturity | Two years from the date of opening the account |
| Rate of Interest | 7.5% |
| Investment Amount | Min. Rs 1000 and multiples of 100
Max. limit is Rs. 2 lakhs |
| Premature withdrawal | On the death of the account holder
On extreme cases |
| Tax Exemption | No tax benefit under this scheme |
| Risk Involved | Risk-free |
Best Post Office Scheme and Interest Rates for 2024
Checkout the below table, representing the 10 best Post Office Saving Schemes and their respective Interest Rates 2024:
| Sr. No. | Post Office Savings Schemes | Interest Rates Annually |
| 1 | Post Office Savings Account | 4% |
| 2 | National Savings Recurring Deposit Account | 6.7% |
| 3 | National Savings Time Deposit Account | Starts at 6.9% (Max. 7.5%) |
| 4 | National Savings Monthly Income Account | 7.4% |
| 5 | Senior Citizens Savings Scheme Account | 8.2% |
| 6 | Public Provident Fund Account | 7.1% |
| 7 | Sukanya Samriddhi Account | 8% |
| 8 | National Savings Certificates (VIIIth Issue) | 7.75% |
| 9 | Kisan Vikas Patra | 7.5% |
| 10 | Mahila Samman Savings Certificate | 7.5% |
How to Apply for a Post Office Savings Scheme?
Below are the easy steps to apply for post office savings schemes:
Offline by Visiting Branch
- First you need to visit the nearest post office branch
- Ask for the form of the particular scheme that you want to invest in. Alternatively, you can download the form from the Indian Post website
- Now, fill in the details required in the form correctly and submit the same along with your KYC details and photographs, etc.
- Once done, complete the process of enrolment by depositing the amount as per the requirement of the chosen plan.
Through Internet Banking
- Go to the official portal of the Department of Posts (DOP)
- Click on ‘New User Activation’
- Here, you have to enter your ‘Account ID’ and your ’Customer ID’ to proceed ahead by clicking on the ‘Continue’ button. If your Internet banking is not activated, you must activate it by filling out an activation form
- Once online banking is active, submit the ID and password to log in
- Click on the button of the ‘General Service’ and proceed by clicking on the ‘Service Request’ button
- Now, click on the ‘New Requests’ button under the ‘Service Request’ section
- Choose the type of scheme you want to invest in from the options available
- Submit the required details on the scheme application form. Now, click on the ‘Submit’ button to join the scheme
Through Mobile App
- First, you need to download the India Post Mobile Banking app from the Google Play Store and log in to it
- Once you log in successfully, go to the home page and select the ‘Requests’ button to open a post office savings account
- Submit essential details like deposit amount, term of scheme, nominee, etc. to open the account
Documents Required for Post Office Savings Scheme
Below are the required documents needed to open a post-office savings scheme in India:
- Application Form (plan specific)
- KYC Form
- PAN
- Aadhaar
- Driving license
- Voter’s ID card
- Job card
- Proof of DOB or date of birth
Wrapping Up
As seen in the blog, there are a number of post office tax saving schemes for different sections of society. You can choose your own best post office saving scheme in India from these options as per your needs.
Best Post Office Investment-Savings Scheme 2024 and Interest Rates
A low-risk strategy with consistent income is the Post Office Monthly Income Scheme. Earn 7.4% interest on monthly investments up to Rs. 9 lakh and Rs. 15 lakh made in a joint account. Each person must have a MIS account in order to invest in a post office scheme.
Yes, cash may be withdrawn from any post office using a Post Office account. The money can also be withdrawn at any time by the account holder. However, in the case of a generic account, a minimum balance of Rs. 500 must be kept.
A maximum of Rs. 10,000 in cash may be taken out of the post office account each day. However, a daily withdrawal limit of Rs. 25000 is allowed when using a post office ATM card.
Yes, Indian Post Office offers its account holders the option of using the internet banking service to access their specific account information, among other things. A valid individual or joint account, KYC documents, and an active DOP ATM card are required for customers before they can register for net banking.
Students older than 18 can participate in all programmes with the exception of the Senior Citizen Savings Programme. The Sukanya Samriddhi Yojna (SSY) is a programme for female students that requires parents to deposit a minimum amount or more. Once the money has grown, it is given to the girl child when she turns 21.
Indeed, it is protected as ventures under Mailing station bear sovereign assurance of Administration of India. This large number of plans are charge excluded up to a specific breaking point and a few plans like PPF, Sukanya Samridhi Yojna have tax reductions on returns too.
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