Top 5 Post Office Deposit Schemes Offering Returns up to 8.20%
Top 5 Post Office Deposit Schemes Offering Returns up to 8.20%
From Sukanya Samriddhi to SCSS, these government-backed schemes offer safe investments with attractive interest rates and tax benefits
India Post offers several small savings schemes that provide secure investment avenues with stable returns and tax benefits. As of now, here are the top five post office deposit schemes offering returns up to 8.20%:
1. Sukanya Samriddhi Yojana (SSY) – 8.20% Interest
Designed to support the future education and marriage expenses of a girl child, SSY offers the highest return among post office schemes. It requires a minimum annual investment of ₹250 and allows a maximum of ₹1.5 lakh per year. Only one account is permitted per girl child, and deposits are eligible for tax deduction under Section 80C of the Income Tax Act. The interest earned is also tax-free.
2. Senior Citizens’ Savings Scheme (SCSS) – 8.20% Interest
Aimed at individuals aged 60 and above, the SCSS provides a guaranteed return of 8.20% for a 5-year tenure. The minimum investment is ₹1,000, while the maximum limit is ₹30 lakh. This scheme also qualifies for deductions under Section 80C, making it a preferred choice for retirees seeking steady income.
3. 5-Year National Savings Certificate (NSC VIII Issue) – 7.70% Interest
NSC offers a fixed return of 7.70% and has a lock-in period of five years. It requires a minimum investment of ₹1,000 with no upper limit. Deposits qualify for Section 80C tax benefits, and there is no Tax Deducted at Source (TDS) on interest.
4. Kisan Vikas Patra (KVP) – 7.50% Interest
KVP is ideal for those looking to double their investment over a longer period. It offers 7.50% interest and can be encashed after 2.5 years. The minimum investment is ₹1,000 with no maximum limit. However, KVP does not provide any tax benefits under the Income Tax Act.
5. Public Provident Fund (PPF) – 7.10% Interest
PPF is a long-term savings scheme with a tenure of 15 years and offers 7.10% interest. Investors can contribute between ₹500 and ₹1.5 lakh per year. The scheme provides triple tax benefits, investments qualify for Section 80C deductions, and both interest and maturity proceeds are tax-free.
These government-backed schemes continue to be popular among risk-averse investors, offering stable returns along with safety and, in many cases, tax efficiency.
