India Post currently offers a total of nine small savings schemes. For the current quarter ending March 31, the government provides interest at the rate of 4-8.7 per cent on investment or deposit held in these nine small savings schemes, according to India Post, which operates a network of more than 1.5 lakh post offices across the country. Out of these small savings schemes, four - namely Senior Citizen Savings Scheme (SCSS), 15-Year Public Provident Fund (PPF), National Savings Certificate and Sukanya Samriddhi - offer interest rates of at least 8 per cent, according to the India Post website - indiapost.gov.in.
Here's a comparison of these small savings schemes offered by the post office:
| Small savings scheme | Interest rate | Minimum amount required for opening account | Maximum investment allowed |
|---|---|---|---|
| Senior citizen savings scheme (SCSS) | 8.70% | Rs 1,000 | Rs 15 lakh |
| 15-year public provident fund | 8% | Rs 500 | Rs 1.5 lakh per financial year |
| National savings certificate (NSC) | 8% | Rs 100 | No limit |
| Sukanya Samriddhi | 8.50% | Rs 1,000 | Rs 1.5 lakh per financial year |
| (Source: indiapost.gov.in) | |||
(Also read: Want to withdraw money from provident fund account? It's allowed in these situations)
Investment in all four of these small savings schemes qualifies for income tax benefit under Section 80C of the Income Tax Act.
(Also read: Want to check employee provident fund balance online? How to do it)
Retirement fund body EPFO or Employees' Provident Fund Organisation last month announced a hike in the interest rate applicable to employees' provident fund (EPF) to 8.65 per cent for the current financial year (2018-19). That marked a shift from a five-year low of 8.55 per cent for the preivous financial year (2017-18).
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