Nine Post Office schemes that offer guaranteed rewards

Everyone looks for some sort of guarantee while investing. Led by this approach, government-backed schemes are much popular among conservative investors. Small savings schemes by the department of posts have particularly gained a lot of popularity among the risk averse. Here’s a list of  9 schemes by India Post that offer you guaranteed returns:

Post Office Savings Account
It is a secure option to deposit funds and is similar to a bank savings account. The post office savings account is highly liquid and is considered best for those who are looking for guaranteed returns at no risk. The interest rate is changed by the government from time to time. The current rate of interest is 4% p.a. Users can also avail themselves of banking services like cheque books, ATM facilities, e-statements, etc.

Monthly Income Scheme Account
By investing in this account, one can get fixed interest per month. An individual can deposit Rs 1,000- Rs 4.5 lakh in a single account. In the case of a joint account, up to Rs 9 lakh can be deposited. The account offers a rate of interest of 6.6%. However, it is pertinent to note that the Post Office Monthly Income account cannot be closed prematurely.

Time Deposit Account
The minimum deposit allowed in the Post Office Time Deposit Account is Rs 1,000. An individual can choose between four tenures—1 year, 2 years, 3 years, and 5 years—that offer different rates of interest, which are calculated annually.

Recurring Deposit Account
Under this scheme, an individual can make a fixed monthly deposit and earn interest up to 5.8%. The interest is compounded quarterly. An individual can also get a loan of 50% against the deposited amount.

Senior Citizen Savings Scheme
This is a retirement scheme under which an individual can make deposits either in installments or in a lump sum. The maximum amount that can be deposited is up to Rs 15 lakh. Those above 60 years of age can open this account and can get the interest at 7.4% annually.

Public Provident Fund Account
PPF is considered to be a good investment in terms of retirement planning. It also offers a tax benefit of up to Rs 1.5 lakh. The interest earned on PPF is also tax-free. To keep the account active, one needs to pay only Rs 50o per year. The interest rate offered by this scheme is currently 7.1%. It is particularly suitable for long-term investors since it has a lock-in period of 15 years.

Sukanya Samriddhi Yojana
Under this scheme, the account can be opened in post offices or any bank in the name of the girl child. The Sukanya Samriddhi Yojana provides tax breaks under section 80C of the Income Tax Act and the returns are tax-free. This account can be opened before the girl turns 10 and has a tenure of 21 years or until the daughter is married after 18 years of age. The current interest rate being offered is 7.6%, compounded annually. The interest rate will be revised every quarter.

Kisan Vikas Patra
The current rate of interest offered by this scheme is 6.9%. At the current interest rate, under this scheme the investment can get doubled over the tenure of 10 years and 4 months. An individual can make a minimum deposit of Rs 1,000. There’s no maximum limit.

National Savings Certificate
It is a low-risk investment option that comes with a minimum deposit of Rs 1,000. It’s a government-backed initiative to encourage investments and comes with tax benefits. Under section 80C of the Income tax, this scheme also provides tax benefit of up to Rs 1.5 lakh. The current rate of interest under this scheme is 6.8%.