Post Office investments are backed by the government, ensuring safety and security. This includes the Public Provident Fund (PPF), National Savings Certificate (NSC), and Senior Citizen Savings Scheme.
Many Post Office schemes offer tax deductions under Section 80C of the Income Tax Act. This means you can save money on taxes and also enjoy returns over a period of time.
PPF: It has a 15-year tenure and provides an interest of 7.10% annually. While you get consistent returns, you also have to consider the lock-in period.
Senior Citizen’s Savings Scheme: This instrument offers you an 8.20% annual interest. However, this also has a lock-in of 5 years.
Sukanya Samriddhi Scheme: This scheme launched by the Indian government helps you save money under your daughter’s name. You can invest a minimum of Rs. 250 to a maximum of Rs. 1.5 lakh in an FY.
National Savings Certificate: With NSC, you can invest funds and get tax deductions under section 80C. The tenure is typically 5 years and at present the interest rate is 7.7%.
Kisan Vikas Patra (KVP): This scheme has a maturity of 30 months with a minimum investment amount of Rs. 1000. The cutter interest rate is 7.50%.
If you wish to invest in vanilla instruments, a post office recurring deposit, Post Office Savings Account, or Post Office Monthly Income Scheme (POMIS) can also be chosen. The interest rate can vary from 4.00% to 6.50%.