Post Office Savings Schemes

a. Post Office Savings Account

  • Interest: 4% p.a.

  • Minimum balance: ₹500.

  • Similar to bank savings account.

  • Government-backed and low risk.

b. Post Office Recurring Deposit (PORD)

  • Tenure: 5 years.

  • Interest: ~6.7% p.a. (compounded quarterly).

  • Minimum monthly deposit: ₹100.

  • Premature closure after 3 years allowed.

c. Post Office Time Deposit (TD)

  • Tenure: 1, 2, 3, or 5 years.

  • Interest: 6.9% to 7.5% p.a. (as per tenure).

  • 5-year TD qualifies for Section 80C tax benefit.

d. Senior Citizens Savings Scheme (SCSS)

  • Age: 60+ years (or 55+ with retirement proof).

  • Tenure: 5 years (extendable by 3 years).

  • Interest: ~8.2% p.a. (paid quarterly).

  • Max investment: ₹30 lakh.

  • Tax benefit under Section 80C.

e. Monthly Income Scheme (MIS)

  • Interest: ~7.4% p.a.

  • Interest paid monthly.

  • Tenure: 5 years.

  • Max limit: ₹9 lakh (single) / ₹15 lakh (joint).

  • Safe and steady monthly income.

f. Public Provident Fund (PPF)

  • Tenure: 15 years.

  • Interest: ~7.1% p.a. (compounded annually).

  • Tax-free interest and principal.

  • Max investment: ₹1.5 lakh/year (eligible under 80C).

g. Sukanya Samriddhi Yojana (SSY)

  • For girl child (up to age 10).

  • Tenure: 21 years or until marriage after age 18.

  • Interest: ~8.2% p.a.

  • Max deposit: ₹1.5 lakh/year.

  • Tax-free maturity.

Bank Savings Schemes

a. Savings Account

  • Offered by all banks (public and private).

  • Interest: 2.7% to 4% p.a.

  • Easy access to funds via ATM/debit card.

  • Suitable for daily banking needs.

b. Fixed Deposit (FD)

  • Lock-in period: 7 days to 10 years.

  • Interest: 3% to 7.5% p.a. (varies by bank and tenure).

  • Premature withdrawal allowed (with penalty).

  • Ideal for conservative investors seeking capital protection.

c. Recurring Deposit (RD)

  • Monthly deposit with fixed tenure.

  • Interest: Similar to FDs.

  • Useful for small, disciplined savers.

  • Tenure: 6 months to 10 years.

d. Tax Saving Fixed Deposit

  • Lock-in: 5 years.

  • Interest: ~6.5% p.a.

  • Eligible for tax deduction under Section 80C (up to ₹1.5 lakh).

  • No premature withdrawal allowed.