5 Post Office schemes offering higher returns than fixed deposit plans; time to close FDs?

New Delhi: Post Office offers various schemes offering impressive returns along with safety on the investment. Some of the schemes offer interest rates better than fixed deposit schemes offered by most public and private lenders. 

Investing for a long term in Post Office schemes could make investors rich after a few years. However, investors are required to continuously put their money in the schemes to end up saving for their retirement or other occasions. 

1. Post Office Public Provident Fund (PPF)

Post Office Public Provident Fund (PPF) requires investors to continuously invest for 15 years. Subscribers can exit the policy after five years of investment. They can also take a loan against their investment from the 4th year onwards while partial withdrawals are allowed from the 7th year onwards. Currently, investors receive an interest of 7.1 per cent per annum for the investments in Post Office Public Provident Fund Account.  

2. National Savings Certificates (NSC)

National Savings Certificates (NSC) is currently offering a 6.8 per cent return to investors. The scheme matures in five years with a fixed return policy, along with tax benefits. Investors are required to make a lump sum investment in the scheme and the amount is paid at the time of maturity. 

3. Post Office Sukanya Samriddhi Yojana (SSY)

Post Office Sukanya Samriddhi Yojana (SSY) is a scheme that offers benefits to investors who have daughters. The scheme can be opened in the name of a girl child below 10 years. The scheme matures in 21 years. The money can be used for the child’s education or marriage. Investors get benefits at a 7.6 per cent annual interest rate under the scheme. 

4. Post Office Time Deposit (TD)

The Post Office time deposit (TD) scheme is similar to a fixed deposit scheme offered by banks. Subscribers can open a Post Office time deposit account by investing a lump sum amount for a tenure of 1, 2, 3 or 5 years. Investors can get tax benefits for the scheme maturing in 5 years. Currently, the scheme is offering an interest rate of 6.7 per cent. Also Read: What is Web 3.0 and how it will help users in future? All you need to know

5. Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme (SCSS) is an investment plan for individuals age 60 or above. Currently, Post Office is offering an interest rate of 7.4% on such schemes. Also Read: Want to download e-PAN Card? Check step-by-step guide