These government schemes of post office give more returns than bank FD, you will get many benefits including tax exemption on investment..

Post Office schemes Vs bank FD: If you also consider bank FD to be the best in the name of a safe investment, then take a look at the schemes of the post office once. All these government savings schemes are not only less risky, but in many cases also give higher returns than FD. The special thing is that the government also gives a guarantee on investing in them, that is, the money is completely safe.

If you do not want to take much risk and hence invest in Fixed Deposit (FD), then these government schemes can prove to be more beneficial for you.

More than 7% return in many government schemes
Recently, the government has announced the interest rates of small savings schemes for the July-September 2025 quarter, in which many schemes are still giving more than 7% return. These government schemes are not only safe in terms of investment, but they also provide the benefit of tax exemption.

Top Post Office Schemes and their Returns:

Senior Citizens' Savings Scheme (SCSS)

Senior Citizen Savings Scheme is a good option for those investors who want regular income and are 60 years of age or above. The government is currently paying 8.2% annual interest on this scheme, which is deposited in the account every 3 months. A maximum of Rs 30 lakh can be invested in it. Investing in this gives tax exemption up to Rs 1.5 lakh under section 80C.

Sukanya Samriddhi Yojana (SSY)

If your daughter is less than 10 years old, then investing in this scheme can prove to be a great option for you. In this, too, you will get a great interest rate of 8.2%. The biggest advantage of this scheme is that investing in it not only gives tax exemption, but the interest and maturity amount received on it is also tax-free. That is, the money invested in it, the interest received on it, and the entire amount received at the end, all three, are tax-free. You can invest a minimum of Rs 250 and a maximum of ₹ 1.5 lakh every year in this scheme.

National Savings Certificate (NSC)

People also like to invest in National Savings Certificate (NSC). Invest in this scheme for 5 years, and currently it is getting 7.7% annual compound interest. The interest received every year on it is also reinvested, and the entire amount is received together on maturity. You can also avail of tax exemption on this scheme.

Kisan Vikas Patra (KVP)
If you want to double your money in a fixed time, then this scheme is for you. It is currently getting 7.5% annual interest, and your amount doubles in about 115 months (9 years, 7 months). However, note that this scheme does not offer tax exemption, but it is a safe investment in the long term.

Public Provident Fund (PPF)

Public Provident Fund (PPF) is getting an interest rate of 7.1% and this rate has remained stable for a long time. The tenure of PPF is 15 years, which can be extended in blocks of 5 5 years. This scheme is good for fulfilling long-term goals like children's education, marriage, or retirement.

Why are post office schemes better than bank FDs?

Nowadays, most of the big government and private banks are offering a maximum of 7% annual interest rate to their customers, that too for a limited time and amount. For example, banks like SBI and HDFC usually offer interest rates of 6.45% to 6.60%. In comparison, many post office schemes offer higher returns than this.

Post office schemes are very popular not only in villages but also in cities as a safe investment. These schemes are available in post offices across India and some select banks. You can go to any post office or select a bank and fill out their form. In most of these schemes, investment can be started with a minimum of Rs 1000.

Benefits of investing in post office schemes
Government guarantee: Both your money and interest are guaranteed by the government.
Tax exemption: Schemes like SCSS, SSY, and NSC help in saving tax.
Fixed returns: These schemes are not affected by market fluctuations.
Options for every category: There are different schemes for senior citizens, parents, employed, and retired people.
If you are looking for a safe and better return investment, then these government schemes of post office can be a more sensible option than bank FD.

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