Post Office Savings Schemes: What do you look for when investing money? Safety and good returns! That’s why many people choose the post office. It offers several schemes with attractive returns, and since it is a government institution, your money remains completely safe.

Nowadays, the post office functions just like a bank, and a large section of the country trusts its schemes. Here, we will tell you about three post office schemes that offer better returns on your investment.

3 Major Benefits: Security, Returns, and Tax Savings

These three post office schemes offer key benefits. First, your money remains completely safe as these are government-backed schemes. Second, you get guaranteed returns on your investment, making them reliable options. Third, you can avail of tax benefits under Section 80C of the Income Tax Act, reducing your taxable income.

1. National Savings Certificate (NSC)

The National Savings Certificate (NSC) is a safe investment option with a maturity period of five years. It can be purchased from any post office in India. Investors can start with a minimum amount of Rs 1,000, and additional investments must be in multiples of Rs 100. The interest rate is revised every quarter by the Ministry of Finance. Currently, NSC offers an annual interest rate of 7.7%, and the entire interest amount is paid without any TDS deduction.

One of the biggest advantages of NSC is that it provides tax exemption under Section 80C, allowing investors to claim deductions of up to Rs 1.5 lakh. Another benefit is that NSC can be used as collateral for loans from banks, providing liquidity when needed.

2. Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) is a savings scheme designed for the financial security of girl children. Parents or guardians can open an SSY account anytime before the girl turns 10 years old. The scheme matures when she reaches 21 years.

The current interest rate for SSY is 8.2% per annum, making it one of the highest interest-paying government schemes. The minimum investment required is Rs 250, while the maximum limit is Rs 1.5 lakh per year. A key benefit of SSY is that 50% of the balance can be withdrawn when the girl turns 18, helping with educational expenses or other financial needs. The full amount can be withdrawn once she turns 21 years old. Additionally, investments in SSY qualify for tax exemption under Section 80C, making it a tax-saving option for parents.

3. Public Provident Fund (PPF)

The Public Provident Fund (PPF) is one of the most popular long-term savings schemes offered by the post office. It is designed for small investors who want to build wealth securely.

Investors can start with a minimum deposit of Rs 500, while the maximum limit is Rs 1.5 lakh per year. The scheme has a lock-in period of 15 years, making it ideal for long-term financial planning. The current interest rate on PPF is 7.1% per annum. The interest is calculated monthly but is credited to the account in a lump sum at the end of each year.

PPF falls under the EEE (Exempt-Exempt-Exempt) tax category, which means the principal amount, interest earned, and maturity amount are all completely tax-free. Another advantage is that investors can take a loan against their PPF balance after a certain period, providing financial flexibility.

These three post office schemes offer a combination of security, guaranteed returns, and tax benefits, making them excellent choices for investors looking for safe and profitable savings options.