SCSS, PPF, NSC, Sukanya Samriddhi accounts offer minimum 8% interest
New Delhi: India Post under the Department of Posts (DOP), offers nine post office saving schemes. It operates a network of more than 1.5 lakh post offices across the country. According to its official website- www.indiapost.gov.in, among the nine post office saving schemes, Senior Citizen Savings Scheme (SCSS), 15-Year Public Provident Fund (PPF), National Savings Certificate and Sukanya Samriddhi offer interest rates of at least 8 per cent.
Meanwhile, last month the retirement fund body the Employees’ Provident Fund Organisation (EPFO) announced a hike in the interest rates applicable to employees’ provident fund (EPF) to 8.65 per cent for the current financial year 2018-19.
1. Senior Citizen Savings Scheme (SCSS)- It helps senior citizens to earn a higher interest rate on their savings. Any individual of an age of 60 years or above can open the account. Under this scheme, the maximum amount that can be deposited is Rs 15 lakh. One important point to note here is that the deposit should be in the multiples of Rs 1000. It offers an interest rate of 8.7 per cent per annum. The premature closure is allowed after one year of deposit on deduction of an amount equal to 1.5 per cent of the deposit and after two years one per cent of the deposit will be deducted.
2. 15-year Public Provident Fund Account (PPF)- This account can be opened with just Rs 100 but one needs to deposit a minimum of Rs 500 and maximum of Rs 1.5 lakh during a financial year. Under this scheme, deposits can be made in lump-sum or in 12 installments. It offers an interest rate of 8 per cent per annum which is compounded yearly. One important point to note here is that premature closure of the account is not allowed before 15 years. The interest which is earned on the deposit is completely tax free. If you wish to withdraw money from this account then it is permissible every year from the seventh financial year from the year of opening account.
3. National Savings Certificates (NSC)– Earlier, NSCs were available for 5 years and 10 years tenure, but late on 10 year NSCs were discontinued. Presently, only 5-year tenure NSCs are available for subscription. It offers an interest rate of 8 per cent which is compounded annually but payable at maturity. The deposits made under this scheme are eligible for tax rebate under Section 80C of Income-Tax Act. However, one important point to note here is that, the minimum amount that can be invested is Rs 100 while there is no limit on the maximum amount of investment.
4. Sukanya Samriddhi Account- This account can be opened by a legal or natural guardian in the name girl child. Only one account can be opened in the name of one girl child and a maximum of two accounts in the name of two different girl children can be opened. A minimum of Rs 1000 and maximum Rs 1.5 lakh in a financial year. It offers an interest rate of 8.5 per cent per annum, which is compounded yearly. This account can be closed after completion of 21 years of a girl’s age.