Some of the Post Office schemes offer better returns than the Fixed Deposit schemes of commercial banks. Take for example the National Savings Certificate (NSC), which can grow your money at the rate of 8% per annum compounded annually. Compared to the NSC, the interest rates offered by FDs of leading banks are less. The highest interest rate offered by State Bank of India at present is 7 per cent for a tenure of 1-2 years. 

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For investment up to 5-10 years, SBI offers just 6.60% interest. Similarly, other leading banks like HDFC Bank, Axis Bank, Punjab National Bank and Bank of Baroda offer the highest rate of return of 7.40%, 7.25%, 7.1%, and 7% respectively. 

With NSC, you can get more than double of your initial investment in 10 years. One can make a minimum investment of Rs 100 and in multiples of Rs 100 in NSC. There is no maximum limit. 

As the current rate of 8% interest, which is compounded annually, your investment in NSC can almost double in nine years. In 10 years, it can more than double your investments. But there is a catch! 

Currently, only NSC VIII issue with a five-year tenure is available. So, you will have to reinvest the maturity amount after five years to get more than double of your initial investment in 10 years. 

Tax rebate

Not just high-interest rate, NSC investment also qualifies for tax rebate under Section 80C. If you are looking to invest for a period of 5-10, NSC could be one of the safest options. 

According to Post Office's official website, a single holder type NSC can be purchased by an adult for himself or on behalf of a minor or by a minor. The interest on the deposit accrues annually but is deemed to be reinvested under Section 80C of IT Act.

Transfer of certificates from one person to another can be done once from date of issue to date of maturity.

(Bank interest rates mentioned in the story taken from their respective websites on June 22, 2019)