Best 9 Post Office Scheme to Double Money

Post office savings schemes are investments offered by India Post, a postal system operated by the government of India. These schemes are known for their attractive interest rates and tax benefits. They also have a sovereign guarantee, which means the government backs them and has minimal risk of default. The following table summarises the duration it takes to double the money by investing in post office saving schemes.

Post Office Scheme to Double Money in 2024

Scheme Name	Interest Rate	Years to Double the Money
Senior Citizens Savings Scheme Account	8.20% p.a.	8.8
Sukanya Samriddhi Account	8.00% p.a.	9.0
National Savings Certificates	7.70% p.a.	9.4
Kisan Vikas Patra	7.50% p.a.	9.6
National Savings Time Deposit Account	6.90% to 7.50% p.a.	9.6
National Savings Monthly Income Account	7.40% p.a.	9.7
Public Provident Fund Account	7.10% p.a.	10.1
National Savings Recurring Deposit Account	6.70% p.a.	12.0
Post Office Savings Account	4% p.a.	18.0

Senior Citizens Savings Scheme Account

A scheme exclusively for senior citizens aged 60 years and above or those who have retired under certain conditions between 55 and 60 years. The scheme offers an interest rate of 8.20% p.a., payable quarterly. The minimum investment amount is INR 1,000, and the maximum is INR 30 lakh. Depositors can withdraw the amount after five years or prematurely after one year with a penalty. The interest earned on the account is taxable as per the income tax slab of the depositor. Deposits made are eligible for deduction under Section 80C up to INR 1.5 lakh per year.

Sukanya Samriddhi Account

This is a scheme for the girl child, which can be opened by the parent or guardian of a girl child below 10 years of age. The scheme offers an interest rate of 8.00% p.a., compounded annually. The minimum amount to be deposited in a financial year is INR 250, and the maximum amount is INR 1.5 lakh. Depositors can withdraw up to 50% of the balance after the girl child attains 18 years of age or for her higher education or marriage. The interest earned on the account is tax-free, and the deposits made are eligible for deduction under Section 80C up to INR 1.5 lakh per year.

National Savings Certificates (VIIIth Issue)

Depositors can invest in certificates of different denominations for a period of five years. The scheme offers an interest rate of 7.70% p.a., compounded annually but payable at maturity. The minimum amount to be invested is INR 1,000, with no maximum limit. The depositor can encash the certificates after five years or prematurely after one year with a penalty. The interest earned on the certificates is taxable as per the income tax slab of the depositor. Deposits made are eligible for deduction under Section 80C up to INR 1.5 lakh per year.

Kisan Vikas Patra

Depositors can double the invested amount in a specified period of time. The scheme offers an interest rate of 7.50% p.a., compounded annually. The minimum amount to be invested is INR 1,000, with no maximum limit. The depositor can encash the certificates after two and a half years or prematurely after one year with a penalty. The interest earned on the certificates is taxable as per the income tax slab of the depositor.

National Savings Time Deposit Account

The fixed deposit scheme allows the depositor to invest a lump sum amount for a fixed period of time. The scheme offers different interest rates for different tenures, ranging from 6.90% to 7.50% p.a., compounded quarterly and paid annually. The minimum amount to be invested is INR 1,000, with no maximum limit. The depositor can withdraw the amount after the maturity period or prematurely after six months with a penalty. The interest earned on the account is taxable as per the income tax slab of the depositor. Only the deposits made for five years are eligible for deduction under Section 80C up to INR 1.5 lakh per year.

Post Office Monthly Income Scheme (POMIS)

This is a scheme that provides a fixed monthly income to the depositor for a period of five years. The scheme offers an interest rate of 7.40% p.a., payable monthly. The minimum amount that can be invested is Rs. 1,000. Maximum amount is INR 9 lakh for a single account and INR 15 lakh for a joint account. Depositors can withdraw the amount after the maturity period or prematurely after one year with a penalty. The interest earned on the account is taxable as per the income tax slab of the depositor.

Calculate: Using Post Office Monthly Income Calculator

Public Provident Fund Account

PPF is a long-term savings scheme with a lock-in period of 15 years, thus suitable for goals such as retirement or education. The scheme offers an interest rate of , compounded annually. The minimum amount to be deposited in a financial year is INR 500, and the maximum amount is INR 1.5 lakh. The depositor can withdraw up to 50% of the balance after five years or take a loan against the account after three years. The interest earned on the account is tax-free, and the deposits made are eligible for deduction under Section 80C up to INR 1.5 lakh per year.

National Savings 5-Year Recurring Deposit Account

The scheme allows the depositor to save a fixed amount every month for a period of five years. The scheme offers an interest rate of 6.70% p.a., compounded quarterly. The minimum amount to be deposited every month is INR 100, and there is no maximum limit. The depositor can avail a loan of up to 50% of the balance after one year of opening the account. The interest earned on the account is taxable as per the income tax slab of the depositor.

Post Office Savings Account

It is a basic savings account that can be opened by any resident Indian, minor or major. The account offers an interest rate of 4% p.a., with interest payable quarterly. The minimum balance required to open the account is INR 500, with no maximum limit. The account holder can withdraw money from the account at any time, subject to a minimum withdrawal of INR 50. The interest earned on the account is tax-free up to INR 10,000 per year under Section 80TTA of the Income Tax Act.

Conclusion

Post office savings schemes are a popular choice for investors who want to save money for various purposes and enjoy attractive interest rates and tax benefits. These schemes are also safe and secure, as the government of India backs them. Depending on the tenure and liquidity, the investor can choose a suitable scheme. Each scheme has its own features, advantages and disadvantages, which should be carefully considered before investing. Post-office savings schemes can help investors achieve their financial goals and create a corpus for emergencies or retirement.