Post Office Saving Schemes Compared: Senior Citizen Account Vs PPF Account

India Post, the postal system of the country offers nine saving schemes with different rates of interest. These savings schemes includes- savings account, recurring deposit account, time deposit account, monthly income scheme account, senior citizen savings scheme, public provident fund account, national savings certificates, Kisan Vikas Patra and Sukanya Samriddhi accounts, as mentioned on the official website of India Post. An individual of the age of 60 years or more can open senior citizen savings account. Sukanya Samriddhi account can be opened by a legal guardian in the name of a girl child. The return depends on the selection of scheme and the maturity period, also known as tenure. 

Post office senior citizen savings account

Post office senior citizen savings account (SCSS) can be opened by an individual of 60 years or above. An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS (Voluntary Retirement Scheme) can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits. The post office pays an interest rate of 8.3 per cent on deposits on the senior citizen savings account. There can be only one deposit in the account in multiple of Rs 1,000 where the maximum amount must not exceed Rs 15 lakh, according to India Post's official website- indiapost.gov.in.

Post office public provident fund account

Post office public provident fund account can be opened by an individual with Rs 100 but he/she must deposit a minimum of Rs 500 in a financial year and maximum of Rs 1,50,000. Deposits can be made in lump-sum or in 12 installments. The PPF account fetches an interest rate of 7.6 per cent. Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.

Post office national savings certificates account

The national savings certificates account fetches an interest rate of 7.6 per cent. The interest is compounded annually and payable at maturity. The minimum amount required for opening of account is Rs 100. Deposits must be made in the multiples of Rs 100 only. There is no maximum limit mentioned here, said India Post. Deposits qualify for tax rebate under Sec. 80C of IT Act.

Post office Sukanya Samriddhi account

Sukanya Samriddhi account can be opened by a legal guardian in the name of a girl child. A Sukanya Samriddhi scheme account fetches an interest rate of 8.1 per cent. Interest rates are compounded yearly. For a financial year, the minimum amount that can be deposited in this account is Rs 1,000. The maximum amount that can be deposited is Rs 1,50,000. Deposits can be made in lump-sum. There is no limit on number of deposits either in a month or in a financial year, said India Post.