Post office saving schemes: Get over 8% interest rate; check Sukanya Samriddhi scheme and Senior Citizen Saving Scheme details

Post office offers a number of saving schemes, each with different rates of interest. While two of the nine savings post office schemes - Sukanya Samriddhi Account and Senior Citizens Savings Scheme (SCSS) offer over 8% of interest rate per annum. The senior citizen scheme is for people above the age of 60 years while the Sukanya Samriddhi scheme is meant for a girl child.

The interest rates on these post office saving schemes depends on the government's interest rates on small savings schemes, which are revised on a quarterly basis. Here are all the details of Sukanya Samriddhi scheme and Senior Citizen Saving Scheme:

Sukanya Samriddhi scheme

1. Sukanya Samriddhi scheme offers an annual interest rate of 8.4 per cent and the investment is compounded annualy. The Sukanya Samriddhi scheme can be opened by a natural or legal guardian in the name of a girl child. 

2. Also the guardian can open only one account in the name of one girl child, while maximum of two accounts are allowed in the name of two different girl children. There is a maximum age limit of 10 years of the girl to open the account for Sukanya Samriddhi scheme. 

2. One can invest a minimum of Rs 250 and a maximum of Rs 1,50,000 in a financial year and the deposits can be made in the multiple of Rs 100. Deposits can also be made in lump-sum amount and there is no limit on the number of deposits either in a month or in a financial year.

4. The account can be closed after completion of 21 years. However, normal premature closure is allowed after completion of 18 years, provided that girl is married.

Senior Citizen Saving Scheme

1. The scheme offers a return of 8.6 per cent per annum and can be opened with a minimum of Rs 1,000. While the maximum amount should not exceed Rs 15 lakh for SCSS. 

2. The person with an age of 60 year or more is eligible to open the SCSS account. While an individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS can also open account after meeting certain conditions.

3. The account can be opened by cash if the amount is below Rs 1 lakh and cheque for over Rs 1 lakh. The person is provided the nomination facility at the time of opening and after, opening of account.

4. The maturity period of senior citizen saving scheme is five years, according to India Post. While the premature closure of the SCSS account is allowed after one year on deduction of an amount equal to 1.5 per cent of the deposit and after two years on deduction of an amount equal to 1 per cent of the deposit.

5. The SCSS investments hold benefits under Section 80C of the Income Tax Act, 1961. The TDS is also deducted at source on interest in case the interest income is more than Rs 10,000 in the financial year.