Indian Post Office Saving Schemes: It is very important to invest time to secure our future, so we do not need to depend on anyone when the need arises. While there are many investment options, today we will tell you about some Post Office savings schemes that offer tax benefits along with better interest rates. Additionally, these schemes carry no risk. Throughout this article, we will share all the details about Risk-Free Post Office Saving Schemes for Middle-Class Investors.

Post Office Savings Account

This is similar to a bank savings account, with the only difference being that you need to go to the post office to open the account. Even minors can open an account. The interest rate offered is 4%.

Post Office Monthly Income Scheme

This scheme lasts for up to 5 years, providing 7.4% interest on the deposited amount every month. You can open a single account with a minimum of Rs 1000, and the maximum limit is Rs 9 lakh. For a joint account, the maximum limit is Rs 15 lakh. The account can be transferred from one post office to another across the country. You can close the account early after one year, but if you withdraw the original investment between 1 to 3 years, you’ll incur a penalty of 2%. If you withdraw after 3 years, the penalty reduces to 1%.

Post Office Recurring Deposit (RD)

The annual interest rate on this scheme is 6.7%. It lasts for up to 5 years. You can deposit as little as Rs 100 every month, with no maximum limit on investment. If you miss a deposit, you’ll incur a penalty of Rs 1 for every Rs 100. After one year, you can withdraw up to 50% of your investment.

Post Office Time Deposit

You can open your account with Rs 1000, with no maximum limit. The interest rates vary:

  • 6.9% for 1-year investment
  • 7.0% for 2 years
  • 7.1% for 3 years
  • 7.5% for 5 years

The account can also be transferred from one post office to another.

Senior Citizen Savings Scheme

To invest in this scheme, you must be at least 50 years old. You can open an account in your name or a joint account with your spouse. The maximum deposit amount is Rs 15 lakh. The maturity period is 5 years.

Kisan Vikas Patra

This scheme offers compound interest at 7.5% per annum. The investment amount doubles every 115 months. The minimum deposit is Rs 1000, with no maximum limit. You can invest for up to 10 years.

Public Provident Fund (PPF)

This scheme offers 7.1% interest per annum on investments for 15 years. You can open an account with Rs 500, and joint accounts are not allowed. There are no age restrictions to avail of the benefits.