Nowadays, everyone saves some of their income and plans to invest this savings in a place that not only keeps their money safe but also provides excellent returns. In this regard, small savings schemes run by post offices are quite popular. These schemes offer investors attractive returns ranging from 7.5% to 8.2% annually. These schemes are available for all age groups and all classes. We are describing five such schemes, in which a substantial corpus can be accumulated even through small investments. Two of these are specifically for women.
First Scheme: Sukanya Samriddhi Yojana (SSY)
This scheme is not just a simple savings account, but a plan for parents to arrange funds for their daughter’s education and marriage, from birth to marriage. The Sukanya Samriddhi Account is opened in the name of a daughter under the age of 10. The government offers a robust annual interest rate of up to 8.2%. Parents can deposit up to ₹1.5 lakh annually and also receive tax benefits under Section 80C.
If the maximum limit of ₹1.5 lakh is deposited in this government scheme for 15 consecutive years, interest will continue to accrue on the total closing balance for the next six years, i.e., until maturity, accumulating ₹69,27,578 for their daughter. The total amount deposited will be 2,250,000 rupees, while the interest will be 46,77,578 rupees. The government launched the SSY Scheme on January 22, 2015, with the future of daughters in mind, and by November 2024, 41 million accounts had been opened under it.
Second Scheme: Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a long-term and secure investment scheme, with the government guaranteeing the safety of investments. It is particularly beneficial for professionals seeking stable, tax-free savings for their future. It offers an interest rate of up to 7.1% per annum. Investments in PPF also qualify for tax deductions under Section 80C. The scheme has a lock-in period of 15 years, and investments can be started with just ₹500. A maximum lump sum investment of ₹1.50 lakh can be made in this scheme in a financial year. However, if you wish to continue investing beyond the lock-in period, you can extend it every 5 years. The maturity amount is also completely tax-free.
Third Scheme: National Savings Certificate (NSC)
NSC is a government scheme run by the Post Office. You invest money for 5 years and earn 7.7% annual interest. This interest is compounded annually, but you receive the full amount upon maturity. You can invest as much as you want in it. Your investment also qualifies for tax deductions up to ₹1.5 lakh under Section 80C. You can purchase it individually or jointly at any post office. This scheme proves to be a reliable option for the medium term.
Fourth Scheme: Post Office Monthly Income Scheme (POMIS)
The Post Office offers another excellent scheme for safe investments and excellent returns, the Monthly Income Scheme. In this scheme, interest earnings are guaranteed from the next month after a lump sum investment. This scheme offers an excellent interest rate of 7.4%, which is subsidized by the government. Interest benefits begin accruing within one month of opening the account. Interest on deposits is paid monthly. Investments can start with just ₹1,000. You can open either single or joint accounts.
A single account holder can invest up to ₹9 lakh, while a joint account holder can invest up to ₹15 lakh. Calculating the benefits, if you invest a maximum of ₹9 lakh in a single account with a lock-in period of five years, you will earn ₹5,550 per month solely from interest. Whereas, the monthly income on joint account investment of Rs 15 lakh will be Rs 9,250.
Fifth Scheme: Mahila Samman Savings Certificate (MSSC)
The Mahila Samman Savings Certificate Scheme was launched by the government in 2023. It is specifically for women. It offers 7.5% annual interest on investments for a two-year period. This scheme is also available at all 1.59 lakh post offices across the country. The scheme currently operates with a two-year maturity period, and parents can invest in the name of a minor girl. The minimum investment in this scheme is ₹1,000 and the maximum is ₹2 lakh. Note that if a woman has more than one account in her name, the combined investment amount will be ₹2 lakh.
If a woman has more than one account in her name, the combined investment amount will be ₹2 lakh. There must be a three-month gap between opening the second account and opening the second account. Partial withdrawals are available. 40% of the balance can be withdrawn after one year from the date of account opening. You can close this account after 6 months, but for this 2% interest will be deducted.
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