Top post office schemes: These 9 small savings schemes offer above 7% interest rate

For the June 30, 2024 quarter, the government has kept the interest rates of small savings schemes unchanged.

"The rates of interest on various Small Savings Schemes for the first quarter of FY 2024-25 starting from 1't April, 2024 and ending on 30th June, 2024 shall remain unchanged from those notified for the fourth quarter (1st January, 2024 to 31st March, 2024) of FY 2023-24," stated an office memorandum issued by the Ministry of Finance on March 8, 2024.”

Also read: PPF, Senior Citizen Savings Scheme, Sukanya Samriddhi and other small savings schemes' rates announced for April-June quarter

Here is a look at nine post office schemes that offer more than 7% interest.

1. Public Provident Fund Scheme

The government offers 7.1% per year (compounded annually) on PPF. The minimum deposit is Rs. 500 every fiscal year, with a maximum deposit of Rs. 1.50 lakh. Deposits are eligible for deduction under Section 80C of the Income Tax Act. The amount can be placed in any number of payments during the fiscal year in multiples of Rs. 50, with a maximum of Rs. 1.50 lakh. The interest for the calendar month will be determined on the account's lowest balance between the fifth day and the end of the month.

2. Senior Citizen Savings Scheme(SCSS)

The government offers 8.2% interest on the Senior Citizen Savings Scheme. Minimum deposit shall be Rs. 1000 and in multiple of 1000, subject to maximum limit up to Rs. 30 lakh in all SCSS accounts opened by an individual. Interest is taxable if total interest in all SCSS accounts exceeds Rs.50,000 in a financial year and TDS at the prescribed rate shall be deducted from the total interest paid. No TDS will be deducted if form 15 G/15H is submitted and accrued interest is not above prescribed limit.

3. 3-year Post Office Time Deposit

Post Office Time deposit offers an interest rate of 7.1% on a 3-year term deposit. The Account can be opened with a minimum of Rs. 1000 and in multiples of Rs. 100. There is no maximum limit for investment.

4. 5-year Post Office Time Deposit

Post office time deposit offers an interest rate 7.5% on 5-year term deposit. The investment under 5 year TD qualifies for the benefit of section 80C of Income Tax Act, 1961.

Also read: FD interest rates increased by 80 bps on this tenure; check Indian Bank’s latest fixed deposit rates

5. Post Monthly Income Scheme (POMIS)

The government offers 7.4% on the Post Office Monthly Income scheme. The account can be opened with a minimum of Rs. 1000 and in multiples of Rs 1000. A maximum of Rs 9 lakh can be deposited in a single account and 15 lakh in Joint account. Deposits in all MIS accounts opened by an individual shall not exceed Rs 9 lakh.

6. National Savings Certificate (NSC)

The government offers 7.7% compounded annually but payable at maturity on National Savings Certificate. The minimum amount to be deposited is Rs 1000 and in multiple of Rs 100 and there is no maximum limit. Deposits qualify for deduction under section 80C of Income Tax Act. The deposit shall mature on completion of five years from the date of the deposit.

7. Kisan Vikas Patra (KVP)

The government offers 7.5 % Kisan Vikas Patra which will be compounded annually. Amount invested doubles in 115 months (9 years & 7 months). Note that the deposit will mature on the maturity period prescribed by the Ministry of Finance from time to time as applicable on the date of deposit.

8. Mahila Samman Savings Certificate

The government offers 7.5% interest per annum on Mahila Samman Savings Certificate. Interest will be compounded quarterly and credited in account and paid at the time of closure of account. This can be opened by a woman for herself or by the guardian on behalf of a minor girl.

9. Sukanya Samriddhi Account Scheme

The government offers 8.2% per annum calculated on yearly basis, yearly compounded. The minimum deposit to be made is Rs 250and maximum Rs 1,50,000 in a financial year. Subsequent deposit in multiple of Rs 50 There is no restriction on the number of deposits made in a month or in a financial year.