There are many schemes in the Post Office that offer good returns. Various schemes offer higher interest rates on deposits. Whether it is recurring deposit or investment. Good interest rates can be availed. India Post Office offers a fixed deposit scheme with interest rates up to 6.9% for period of one year. They offer 7%. This is for a deposit of 2 years. They offer 7.1% for a deposit of 3 years. Also 7.5% for a deposit of 5 years
How much interest do you get on deposits?
Similarly if you invest in this scheme for 5 years starting from Rs.1000, you will receive Rs.1449948 at the end of the maturity period. This means you will earn Rs.4,49948 as interest. This is because the fixed deposit scheme for 5 years offers 7.5% interest rate.
Postal Deposit Rates
The government has increased interest rates on small savings schemes until June 30 2024. Interest rates for various small savings schemes have increased from April 1, 2024 to June 30 2024 in first quarter of financial year 2024-25. The Ministry of Finance announced this in a publication on March 8, 2024.
Senior Citizen Savings Scheme
The government offers interest rate of 8.2% on the Postal Senior Citizen Savings Scheme. The minimum deposit in this scheme is Rs.1000. You can deposit a maximum of Rs.30 lakhs in scheme. If the total interest from all Senior Citizen Savings Accounts in a financial year exceeds Rs.50000. Tax will be deducted on the interest earned. Also if the total interest exceeds a specified rate TDS will be deducted. If Form 15 G/15H is submitted. And the total interest does not exceed the specified limit. Then TDS will not be deducted.