If you are looking at better interest rates on your money, then some of the post office saving schemes could offer better returns than even bank deposits. However, if you are a tech-savvy individual, who is also unwilling to ignore service aspects then banks are better. However, our comparison is only in terms of returns and not service and technology. Here are 3 post office small saving schemes that offer better returns than bank deposits.
Post Office Saving Schemes are investment instruments that are higher-yielding when compared to fixed deposits. While fixed deposits are backed by the banks, the rate of interest and benefits in tax is not as high as Post Office Saving Schemes.
The post office schemes are backed by the government and offer interest rates ranging between 5.5 percent and 7.6 percent. In addition to such attractive interest rates, the Post Office Saving Schemes also reduces tax liability.
If these interest you, we have sorted out the three best post office schemes that can ensure a fruitful investment.
Sukanya Samriddhi Yojana (SSY)
As the name suggests, the scheme is meant for a girl child and can be opened for a girl under the age of 10. It can give returns at an interest rate of 7.6 percent. The Sukanya Samriddhi Yojana scheme can be opened with a deposit of as low as Rs 250 and the upper limit sets at Rs 1.5 lakh. An account holder under the SSY scheme can avail of tax benefits under Section 80C of the Income Tax Act, where the interest earned under the Sukanya Samriddhi Yojana scheme is tax-free.
Senior Citizen Savings Scheme (SCSS)
This account ensures earning with an interest rate of 7.4 percent per annum and can be opened by an individual who is above 60 years of age. The deposits made in the account must be in multiples of Rs 1,000 and the maximum deposit a person can make should not exceed Rs 15 lakh.
Public Provident Fund (PPF)
With a minimum deposit of Rs 500 and a maximum deposit of Rs 1.5 lakh in one financial year, the Public Provident Fund is currently offering an interest rate of 7.1 percent per annum. The account maturity period for the PPF scheme is 15 years, excluding the year of opening the account under this scheme.
