The government decided to keep the interest rates of small savings schemes unchanged for the quarter ending June 30, 2024. This means the rates remain the same as the previous quarter, from April 1 to June 30, 2024. The decision was stated in a memorandum the Ministry of Finance issued on March 8, 2024.
Let’s look at the top 9 post office small savings schemes offering above 7% interest rates. These schemes provide a good opportunity for people to save money and earn decent returns on their investments.
Top Post Office Small Savings Schemes Offering Above 7% Interest Rates
Public Provident Fund (PPF):
- Offers 7.1% interest per year, compounded annually.
- Minimum deposit of Rs. 500 per fiscal year, up to a maximum of Rs. 1.50 lakh.
- Deposits are eligible for tax deduction under Section 80C of the Income Tax Act.
- Interest is calculated on the lowest balance between the 5th and the end of the month.
Senior Citizen Savings Scheme (SCSS):
- Provides 8.2% interest.
- Minimum deposit of Rs. 1000, with a maximum limit of Rs. 30 lakh per individual.
- Interest is taxable if it exceeds Rs. 50,000 in a financial year.
- TDS is deducted if interest exceeds the prescribed limit unless Form 15G/15H is submitted.
3-year Post Office Time Deposit:
- Offers 7.1% interest on a 3-year deposit.
- Minimum deposit of Rs. 1000, no maximum limit.
5-year Post Office Time Deposit:
- Provides 7.5% interest.
- Investment qualifies for Section 80C benefits.
Post Monthly Income Scheme (POMIS):
- Offers 7.4% interest.
- Minimum deposit of Rs. 1000, up to Rs. 9 lakh in a single account.
- The joint account maximum deposit is Rs. 15 lakh.
National Savings Certificate (NSC):
- Offers 7.7% interest, compounded annually.
- Minimum deposit of Rs. 1000, no maximum limit.
- Deposits eligible for Section 80C deduction.
Kisan Vikas Patra (KVP):
- Offers 7.5% interest, compounded annually.
- Investment doubles in 115 months (9 years & 7 months).
- The Ministry of Finance determines the maturity period.
Mahila Samman Savings Certificate:
- Provides 7.5% interest, compounded quarterly.
- A woman or guardian can open it for a minor girl.
Sukanya Samriddhi Account Scheme:
- Offers 8.2% interest, compounded yearly.
- Minimum deposit of Rs. 250, maximum Rs. 1,50,000 per financial year.
- No restriction on the number of deposits in a month or year.
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