Post Office Saving Schemes that Offers 8-8.7% Interest Rates

India Post or Department of Posts, which runs postal services in the country, also offers banking facilities. Besides allowing customers to open a savings account like banking peers, they also offer a number of saving schemes. Four of the nine saving schemes offered by India Post fetch interest rates of at least 8 per cent or more.

Given below are four post office saving schemes with 8% or more interest:

Post office Public Provident Fund (PPF)

The post office PPF account offers an interest rate of 8 per cent per annum, compounded on a yearly basis, according to the India Post’s official website- The post office PPF account matures in a period of 15 years. Thereafter, on application by the subscriber, it can be extended for one or more blocks of five years each. Deposits in the post office PPF account qualify for income tax deduction under Section 80C of the Income Tax Act, 1961. Section 80C of the Income Tax Act provides for income tax deductions up to Rs. 1.5 lakh in a financial year.

Post office National Savings Certificates (NSCs)

For the quarter ending March 31, post office NSCs fetches an interest rate of 8 per cent per annum. This interest is compounded on an annual basis but paid on maturity. National Savings Certificates (NSCs) have a lock-in period of five years. Deposits in the National Savings Certificate qualify for deduction under Section 80C of the Income Tax Act.

Post office Sukanya Samriddhi account

Post office Sukanya Samriddhi account fetches an interest rate of 8.5 per cent per annum. It is calculated and compounded on a yearly basis. Sukanya Samriddhi Accounts allow a minimum deposit of Rs. 1,000 in a financial year. The maximum investment in the scheme is restricted to Rs. 1,50,000 in a financial year. The subsequent deposits are supposed to be made in multiples of Rs. 100. Sukanya Samriddhi deposits can be made in a lump sum. However, there is no limit on the number of deposits either in a month or in a financial year.


Post office Senior Citizens Savings Scheme (SCSS)

SCSS earns an interest rate of 8.7 per cent per annum, which is payable from the date of deposit on March 31/September 30/December 31 in the first instance and thereafter, interest are payable on March 31, June 30, September 30 and December 31, according to India Post’s website. Post office SCSS has a maturity period of 5 years, which can be extended for further three years within one year of the maturity by giving application in prescribed format. Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961.


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