Investment Scheme

Top Post Office Saving Schemes: An Interesting Study

Post office offerings are generally high interest bearing schemes. Multiple saving plans under the post office umbrella can give out better than expected returns. Customers too like to invest their hard earned money into post offices. However, due to limited digitization, services are sluggish and more involving.

Post Office Schemes: Plans offered by post offices all across India are high interest for investors. Namely are Post Office Monthly Income Scheme Account, 5-Year Post Office Recurring Deposit Account, Senior Citizen Savings Scheme, 15-year Public Provident Fund Account, and Sukanya Samridhi Accounts. All the schemes can be viewed on India Post website ( So, if you’re pondering upon the post office plans for investment, then begin with full information first.

Below mentioned are the schemes you need to know about:

Post Office Monthly Income Scheme Account (MIS):

Under the Monthly Income Scheme Account (MIS), an investment in the multiples of Rs 1,500 is required. The maximum investment limit for the account should be 4.5 lacs in a single account while 9 lacs in the joint account. The scheme offers 7.3% interest rate payable on a monthly basis. The deposits can be withdrawn prematurely after the completion of 1 year but before completing 2 years @ 2% discount of the total deposit. After 3 years, @1% of the deposits made. A discount is basically a deduction for early withdrawal.

5-Year Post Office Recurring Deposit Account (RD):

Under the 5-year post office recurring deposit account, a deposit ranging between Rs.10 per month to any multiple Rs.5 is admissible. Again, there’s no maximum threshold to the deposit amount.  Once reaching maturity, the account can be further run for next 5 years. A sum of Rs.10 reached 717.43 post maturity. The 5-year post office investment plan – recurring deposit account fetches you 6.9% of annual interest rate. Any subsequent deposit is also possible if the first deposit was made after the 16th working day of a particular month. On persistent failure to deposit money within the stipulated time frame, the account is discontinued.

Senior Citizen Savings Scheme (SCSS):

An individual of 55 years of age and less than 60 years, who has retired on superannuation or is under VRS can open an account under senior citizen savings scheme. It’s a one-time deposit into the account in the multiples of Rs.1000 but not more than Rs 15 lacs. The time period for maturity should be 5 years. Withdrawal is prematurely allowed after 1 year on deduction of an amount close to 1.5% of the deposit amount and after 2 years completion, 1% of the deposit. The scheme returns 8.3% interest rate annually payable from the date of deposit.

15-year Public Provident Fund Account (PPF):

An individual can deposit an amount ranging between Rs.500 to Rs. 150,000 in a full financial year. The deposit amount can either be made in lumpsum or divided into 12 installments. The maturity period is 15 years and can be further extended for a 5 years more. A pre-mature closure is not possible under this scheme.  The deposit pooled under the PPF scheme is deductible under section 80C of the IT Act. The current rate of interest is 7.6% compounded yearly.

Sukanya Samriddhi Accounts:

Under Sukanya Samridhi Scheme, any guardian can open this account for the girl child. This is purely dedicated to the girls and their overall well-being. A minimum deposit of Rs.1000 and a maximum of Rs. 1,50,000 in a financial year can be saved in the account. Lumpsum deposits can also be made.

Partial withdrawal, maximum up to 50% of the balance standing at the end of the last financial year can be withdrawn after the account holder attains 18 years of age. age of 18 years. Sukanya Samriddhi Accounts offer interest rate of 8.1% compounded annually.

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