NSC Vs KVP Vs Post Office TD: Major banks including SBI, HDFC Bank have started increasing interest rates on fixed deposits (FD). Soon other banks may also increase interest rates.
During this time, if you are planning to invest, you can invest in post office small savings schemes such as Post Office Time Deposit Account (POTD), National Saving Certificate (NSC) and Kisan Vikas Patra (KVP) for better returns. Huh. Let us know about them in detail…
1. National Savings Certificate (NSC) –
If you are thinking of investing in NSC, then let us know that it has a lock-in period of 5 years. That is, after investing in it, the money is returned only after 5 years. The current interest rate in this is 6.8 percent. One can start investing in this with a minimum of Rs 1000 and there is no investment limit in multiples of 100. NSC is also used as security while taking loan from bank. Under this scheme, NSC investment under section 80C provides tax exemption up to Rs 1.5 lakh per annum. It has a tenure of 5 years, so the interest earned on it every year is also reinvested, hence it gets tax exemption under section 80C.
2. Under Kisan Vikas Patra Scheme of Kisan Vikas Patra (KVP)
Post Office, you can start investing from Rs 1000. By investing in this scheme, your money will double in 124 months (10 years and 4 months). At present, this scheme of post office is getting interest at the rate of 6.9 per cent per annum. Let us tell you that the interest rates of the Small Savings Scheme are decided on a quarterly basis. There has been no change in the interest rates for the last one year. This is the reason that the interest rate of Kisan Vikas Patra Scheme is also stable at 6.9 percent per annum from the year 2020.
3. Post Office Time Deposit Account (Post Office TD)
Under this scheme, you can start investing from Rs 1000. At present, this scheme of Post Office Time Deposit Account is getting interest at the rate of 6.7% per annum. This is a tax saving scheme. TD gets the benefits of section 80C of the Income Tax Act, 1961.
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