From SCSS, PPF, NSC, KVP to Post Office Scheme: 9 India Post investment schemes with tax benefits, guaranteed returns

India Post offers safe and guaranteed investment plans with varying interest rates. The Government of India sets these rates for post office deposit schemes periodically, ensuring consistent growth for investors. Administered by the National Savings Institute under the Department of Economic Affairs, these schemes come with no risk and provide attractive returns.   

Let's take a closer look at the different investment options available:

1) Post Office Savings Account: Earn a 4% interest rate per annum, with fully taxable interest and no TDS deduction.

2) 5-Year Post Office Recurring Deposit Account (RD): Start with monthly deposits as low as Rs 100, earning an interest rate of 6.5% p.a., compounded quarterly.

3) Post Office Time Deposit Account (TD): Similar to a bank fixed deposit, with tenors ranging from 1 to 5 years. Interest is calculated quarterly but paid out annually. Q2 FY 2023-24 rates are 6.9% for a one-year account, 7% for two- and three-year accounts, and 7.5% for a five-year account.

4) Post Office Monthly Income Scheme Account (MIS): A low-risk investment with regular monthly income through 7.40% p.a. interest. The scheme has a lock-in period of five years.

5) Senior Citizen Savings Scheme (SCSS): This government-backed retirement scheme allows lump sum deposits, with an 8.2% interest rate for Q2 FY 2023-24, paid out quarterly.

6) 15-Year Public Provident Fund Account (PPF): A popular investment and retirement tool with income tax deductions up to Rs 1.5 lakh per financial year under Section 80C. PPF offers a tax-free 7.1% p.a. interest, compounded annually.

7) National Savings Certificates (NSC): With a five-year tenure, NSC offers a 7.7% p.a. interest, compounded annually, and paid out at maturity.

8) Kisan Vikas Patra (KVP): Your investment in KVP will double in 123 months, with the current interest rate at 7% per annum.

9) Sukanya Samriddhi Accounts (SSA): Specifically designed for girl children under 10 years of age, SSA offers an attractive 8% p.a. interest, calculated yearly and compounded annually.

These post office deposit schemes provide diverse and secure options for investors, catering to various financial goals and risk appetites. Investors can choose the scheme that best suits their needs and enjoy the benefits of guaranteed returns and steady growth.

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