The government, banks, and financial institutions offer various savings schemes, allowing you to benefit from monthly or annual deposits, ranging from small to large amounts. However, it’s important to know the interest rates for each scheme. Here is information about some post office schemes that offer higher interest rates for your deposits.
This article explains various savings schemes designed for different groups and needs. These include Sukanya Samriddhi Yojana for girls, Mahila Samman for women, Senior Citizen Savings Scheme for the elderly, Public Provident Fund for long-term investors, and options like Kisan Vikas Patra, National Savings Certificate, time deposits, and recurring deposits for short-term goals.
The Indian government reviews and sets interest rates for these schemes every quarter. In September 2024, the Finance Ministry announced that interest rates for the third quarter of FY 2024-25 (October 1 to December 31, 2024) would remain the same as the second quarter (July to September). The ministry confirmed that no changes were made to the small savings schemes’ interest rates for this quarter.
Interest Rate on Senior Citizen Savings Scheme (SCSS)
SCSS is a government scheme designed for senior citizens and retired personnel. You can start an account with a minimum of Rs 1,000. The scheme allows a maximum limit of Rs 30 lakh with multiple accounts. For the October-December quarter, SCSS offers an annual interest rate of 8.2%.
Interest on 5-Year Post Office Time Deposit
The 5-year post office time deposit allows you to deduct investments under Section 80C of the Income Tax Act, 1961. The minimum investment is Rs 1,000, and the interest rate for the October-December quarter is 7.5%.
Interest on National Savings Certificate (NSC)
The NSC is a government scheme that offers fixed returns and tax benefits. The investment qualifies for deductions under Section 80C of the Income Tax Act. The interest rate for the October-December quarter is 7.7%, compounded annually. The interest is added to the principal, but you can only access this benefit after the deposit matures, which is after five years.
Interest Rate on Kisan Vikas Patra (KVP)
KVP is a low-risk scheme with guaranteed returns. The invested capital doubles in 115 months (9 years and 7 months). For the current quarter, KVP offers an interest rate of 7.5%, compounded annually.
Interest on Sukanya Samriddhi Yojana (SSY)
SSY is a government scheme for parents of girl children. The amount deposited qualifies for deductions under Section 80C of the Income Tax Act, and the interest earned is tax-free. The current interest rate for SSY for the October-December quarter is 8.2%.