Post Office saving schemes: Apart from delivery of mails and offering a wide range of financial services, India Post has a number of is a popular investment option and can be opened in any nearby post office easily with a minimum Rs 1,000.  Also Read: Double Your Money With Small Savings Schemes Like Kisan Vikas Patra

For investors, India Post has a several deposit schemes, commonly known as post office saving schemes, and the government is currently offering nine post office saving schemes. Here’s what you should know about the schemes.

What are the small savings scheme?

These nine small saving schemes include Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Post Office Time Deposit. All these schemes have a five Year Term. There is a Senior Citizen Savings Scheme (SCSS) as well. You should also be aware of the facility of opening a savings account with Post Office with a minimum deposit of ₹500.

The interest rates applicable to these small savings schemes keep changing from time to time.

What are the interest rates?

1) Post Office Savings Account​​


It is just like any other savings account you open with banks. India Post also allows you to transfer money in your post office savings account online. It offers 4% interest rate annually.

2) Post Office Time Deposit Account

You have the option to open time deposits as a post office saving scheme for 1, 2, 3 and 5 years of tenure. It is similar to fixed deposits offered by banks. Post office term deposits of 1-3 years gives an interest rate of 5.5%.The five-year term deposit gives 6.7%.

3) 5-Year Post Office RD

You can make small monthly investments in these RD accounts. This recurring deposit scheme offered by post offices will offer you a 5.8% interest.

4) Senior Citizen Savings Scheme (SCSS)

Those investors who have crossed 60 years old can deposit up to ₹15 lakh over their lifetime in a Senior Citizen Savings Scheme. It helps you to earn regular interest income but it has a lock-in period of 5 years. The senior citizens scheme gives 7.4%.

5) Post Office Monthly Income Scheme

Under this scheme you can invest a maximum of ₹4.5 Lakh individually and ₹9 Lakh jointly in post office. This scheme will offer a steady monthly income, and gives an interest rate of 6.6%.

6) National Savings Certificate (NSC)

National Savings Certificate has a lock-in period of 5 years. This will fetch 6.8% interest

7) Public Provident Fund (PPF)

One of the most popular tax scheme is PPF which matures in 15 years. Even though it is a long term savings scheme, you have the option investors to avail partial withdrawal after 5 years. You have to make a minimum deposit of ₹500 every year to ensure the account remains active. This is currently fetching 7.1%.

8) Kisan Vikas Patra (KVP)

The Kisan Vikas Patra (KVP) will now mature or double in value in 124 months giving an interest rate of 6.9%.

9) Sukanya Samriddhi Yojana (SSY)

If you want to cater to investment for your girl child then it's one of the popular girl child savings scheme. It offers you an interest rate of 7.6%. A maximum of two accounts is allowed for a household for two daughters individually. Once the child reaches 21 years of age, she is eligible to claim the maturity amount.