Post office schemes: 5 post office investments that start at Rs 100, deliver 6.7-8.2% interest

Post office schemes are popular in India as they cater to a large section of society to the farthest corner of the country. The other reason a lot of people prefer these investment schemes is they non-market linked, risk-free, and provide guaranteed return. Some of post office schemes, are Post Office Savings Account (SB)​, National Savings Recurring Deposit Account (RD), National Savings Time Deposit Account (TD), National Savings Monthly Income ​Account (MIS), Senior Citizens Savings Scheme Account (SCSS)​, Public Provident Fund Account (PPF), Sukanya Samriddhi Account (SSA)​, and Kisan Vikas Patra (KVP).

Post office offers many financial services to its customers in the form of saving schemes and life insurance. In this article, we will explain about five post office schemes in which you can start investment from just Rs 100.

1. Post Office RD

Post office recurring deposits (RDs) have emerged as the most popular as they provide good interest rate to investors. Post office RD interest rates are reviewed at regular intervals, and the present interest rate is 6.70 per cent per annum compounded quarerly. 
 
You can invest a minimum of Rs 100 per month and there is no maximum limit. The tenure for RD is five years.

2. Post Office Monthly Income ​Account (MIS)

You can start investing with Rs 1000 in this scheme. The maximum deposit amount for a single account is Rs nine lakh, while for a joint account, it is Rs 15 lakh. In this scheme, an investor gets a 7.4 per cent interest rate. You get the monthly income based on your deposits. You get your principal amount back on maturity of five years.
 
Joint account holders get equal share in the monthly income they get in their account.
 
In this scheme, interest is paid on the completion of a month from the date of opening account and so on till maturity. In case, the account holder does not claim interest, they will not get any additional interest.
 
An account holder should not withdraw their amount before one year, if they do, after one year but before three years from the date of opening, two per cent of the principal will be deducted, and the remaining amount will be paid.

3. National Savings Time Deposit Account (TD)

This is a fixed deposit scheme. You can deposit your money one time for one, two, three or five years. The interest rate is different as per tenure. 
 
For one year (6.9 per cent), two years (7 per cent), three years (7.1 per cent), and five years (7.5 per cent) interest rate is applicable to this TD scheme.
 
Account may be started with a minimum of Rs 1,000 and in multiple of Rs 100. There is no maximum investment restriction. The investment under five-year TD qualifies for the benefit of section 80C of the Income Tax Act, 1961.

4. Senior Citizens Savings Scheme Account (SCSS)

This post office scheme is also a one-time deposit scheme for senior citizens. One can invest a minimum of Rs 1,000 to a maximum of Rs 30,000,00 in this scheme for five years. The scheme offers a 8.2 per cent interest rate.
 
In case any excess deposit is made in the SCSS account, it will be refunded immediately to the depositor and only the PO Savings Account Interest rate will apply from the date of excess deposit to the date of refund.

5. National Savings Certificates (NSC)

This scheme applies to all Indian citizens. You can start investing from Rs 1,000 and there is no limit for maximum amount. The current interest rate under the NSC scheme is 7.7 per cent. The tenure is five years of this policy. One can only close the policy before maturity if (i) On the death of a single account, or any or all the account holders in a joint account.
(ii) On forfeiture by a pledgee being a Gazetted officer.
(iii) On order by court.
 
Any number of accounts can be opened under the scheme, and the deposits qualify for deduction under section 80C of the Income Tax Act.

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