Investing in Post Office Savings Schemes is one of the safest and most reliable ways to grow your money in India. While traditional investment options like Fixed Deposits (FDs) and mutual funds carry risks and fluctuating returns, Post Office schemes provide guaranteed returns with government backing.
One such scheme is designed to turn an investment of ₹4 lakh into ₹12 lakh. But how does it work? Let’s break it down step by step.
Post Office Scheme: Invest 4 Lakhs, Get 12 Lakhs
| Feature | Details |
|---|---|
| Investment Amount | ₹4,00,000 |
| Returns | ₹12,00,000 |
| Time Period | Varies (5-15 years) |
| Interest Rate | 7.4% to 8.2% (varies by scheme) |
| Risk Level | Low (Government-backed) |
| Tax Benefits | Yes, under Section 80C |
| Liquidity | Premature withdrawal allowed with conditions |
| Official Website | India Post |
Investing ₹4 lakh in a Post Office scheme can secure your financial future with safe, guaranteed returns. Whether you need monthly income (POMIS), long-term savings (PPF), or high-interest growth (NSC, SCSS), there’s an option for everyone. With government security and tax benefits, Post Office investments are a smart way to grow your wealth over time.
Best Post Office Schemes to Multiply Your Money
1. Post Office Monthly Income Scheme (POMIS)
- How It Works: You invest a lump sum, and the interest is paid out monthly.
- Investment Limit: ₹9 lakh (single), ₹15 lakh (joint account)
- Interest Rate: 7.4% per annum (as of 2024)
- Tenure: 5 years
- Returns Calculation: If you invest ₹4 lakh, you receive ₹2,466 per month for five years.
Example: ₹4,00,000 invested at 7.4% gives ₹1,48,000 in interest over five years.
At maturity, you receive your principal amount back, totaling ₹5,48,000.
see also: Post Office Scheme How to Turn 10 Lakhs into 30 Lakhs
2. Public Provident Fund (PPF)
- How It Works: Long-term investment with compounded interest.
- Investment Limit: ₹1.5 lakh per year
- Interest Rate: 7.1% per annum (compounded annually)
- Tenure: 15 years (can be extended in 5-year blocks)
- Tax Benefits: Exempt under Section 80C (Interest is tax-free)
Example: If you invest ₹4 lakh over 15 years, your corpus can grow to ₹12+ lakh due to compounding.
3. National Savings Certificate (NSC)
- How It Works: Fixed tenure with compound interest but no monthly payouts.
- Investment Limit: No upper limit
- Interest Rate: 7.7% per annum (compounded annually)
- Tenure: 5 years
- Tax Benefits: Under Section 80C
Example: Investing ₹4 lakh at 7.7% for five years gives a maturity amount of ₹5,80,000.
4. Senior Citizen Savings Scheme (SCSS) (For 60+ Age Group)
- How It Works: Designed for retirees, offering high interest rates.
- Investment Limit: ₹30 lakh (maximum)
- Interest Rate: 8.2% per annum
- Tenure: 5 years (extendable for 3 more years)
- Tax Benefits: Under Section 80C
Example: Investing ₹4 lakh at 8.2% for five years generates ₹32,800 per year, totaling ₹1,64,000.
How to Invest in Post Office Schemes?
- Visit the Nearest Post Office – Locate the nearest branch or visit the official India Post website.
- Choose the Right Scheme – Decide based on your financial goals (monthly income vs. long-term corpus).
- Complete KYC Formalities – Carry your Aadhaar, PAN card, and passport-size photos.
- Deposit the Amount – You can invest via cash, cheque, or online transfer (in some cases).
- Receive the Certificate/Passbook – This serves as proof of your investment.
see also: Keeping Cash at Home? Get Ready for a 137% Income Tax Penalty!
Post Office Scheme: Invest 4 Lakhs, Get 12 Lakhs FAQs
Q1. Which Post Office scheme gives the highest return?
The Senior Citizen Savings Scheme (SCSS) offers the highest interest rate at 8.2% per annum.
Q2. Is the investment safe in Post Office schemes?
Yes. All Post Office schemes are government-backed, making them one of the safest investment options.
Q3. Can I withdraw my money before maturity?
Yes, but there may be penalties. Each scheme has its own withdrawal conditions.
Q4. Is interest earned on these schemes taxable?
Interest is taxable, but PPF earnings are completely tax-free.
Q5. Can NRIs invest in these schemes?
No. Most Post Office schemes are only for resident Indian citizens.
