These saving schemes offer higher interest rates than bank fixed deposits (FDs). Who should invest?
2 min read 25 May 2023, 02:50 PM ISTHigher interest than bank FDs on these saving schemes: India Post provides several deposit options for investors, commonly known as post office saving schemes
PremiumHigher interest rates than bank FDs on these saving schemes: If you are thinking of investing your money, and don't want to take a risk, then apart from bank fixed deposits (FDs), you can even put your money in Post Office Saving Schemes. Apart from the lucrative interest rate, investing in these schemes offer a double bonanza of government security and tax deduction.
India Post provides several deposit options for investors, commonly known as post office saving schemes. Presently, the government provides 9 post office saving schemes. These nine small saving schemes include Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Post Office Time Deposit, and Senior Citizen Savings Scheme (SCSS). The government keeps revising the interest rates on a quarterly basis.
After the latest revision in April, some of these schemes are now giving higher interest rates than fixed deposits (FDs) offered by top lenders including the State Bank of India (SBI), ICICI, HDFC, Axis, Punjab National Bank (PNB), Bank of Baroda (BoB) among others.
More than 8% interest rate is available in these two schemes
Sukanya Samriddhi Yojana (SSY) and Senior Citizen Savings Scheme (SCSS) offer an interest rate of more than 8% on these deposits.
Sukanya Samriddhi Yojana
SSY is a government of India-backed small saving scheme that helps parents to save money for the long-term financial requirements of their girl child. In the SSY scheme, the Government of India is giving SSY interest rate of 8 per cent per annum.
Senior Citizen Savings Scheme
Any individual above the age of 60 can invest in this scheme, and earn a higher interest rate. Banks and post offices offer an interest rate of 8.2% on the Senior Citizens' Savings Scheme (SCSS).
National Savings Certificate (NSC)
Currently, the NSC offers an interest rate of 7.7%. There is no upper limit for investment in the NSC and the minimum investment required is ₹100. Deposits of up to ₹ 1.50 lakh in the NSC in a financial year qualifies for tax deduction under Section 80C.
Post Office Time Deposit Scheme
Just just like bank fixed deposits (FDs), the post office also offers time deposits for one year, two years, three years, and five years. Investment in the 5-year post office deposit scheme qualifies for tax deductions up to ₹1.5 lakh per financial year. Currently, the 5-year post office deposit scheme fetches 7.5%.
Latest bank FD rates compared: SBI vs Axis vs HDFC vs ICICI vs PNB vs BoB
SBI's latest FD rates-3.00%-7.10% p.a. to the general public
HDFC Bank's latest FD rates- 3% to 7.1% p.a. to the general public
ICICI Bank's latest FD rates- 3% to 7.1% p.a. to the general public
Axis Bank's latest FD rates- 3.5% to 7.1% p.a. to the general public
Punjab National Bank's latest FD rates- 3.5% to 7.25% p.a. to the general public
Bank Of Baroda's latest FD rates- 3% to 7.25% p.a. to the general public
