There are many post office schemes in which interest is more than 7%. Time deposit or Sukanya Samriddhi Yojana is included in this. Apart from this, PPF and Senior Citizens Saving Scheme also give more than 7 percent interest. Tax exemption is also available.
On the huge demand of the public, the post office runs many types of savings schemes. Small savings schemes of the post office pay more interest than the schemes of ordinary banks. Money is also safe because the whole matter is run under government supervision. This is the reason that due to guaranteed income and high interest, people open accounts in the Post Office Saving Scheme indiscriminately. If you name the post office savings scheme, then it includes post office savings account, post office recurring deposit (post office rd), post office time deposit, senior citizen savings scheme, public provident fund (ppf) and national savings certificate.
We will know about all the schemes mentioned above, in which how much interest is being received. From the rate of interest, it will be known that how much benefit is there in which scheme and what will be the benefit of staying in it. Let us know about them.
1-Post Office Savings Account
Post office savings account is getting 4% interest as of today. There is no tax on investment in this account. However, tax is to be paid on the interest earned from the savings account. Only one account can be opened in a post office. If you want, you can also open this account for your minor child.
2-Post Office Recurring Deposit
At present, 5.8% interest is available on Post Office Recurring Deposit account. There is no tax on the money deposited in this account. But tax has to be paid on the interest earned on the deposited money. The tenure of this account is for 5 years after which you can withdraw your money. You can deposit a minimum of Rs 100 in this and there is no maximum limit.
3-Post Office Time Deposit
Post Office Time Deposit is opened for 1 year, 2 years, 3 years and 5 years. The interest rate on time deposits of 1, 2 and three years is 5.5% while on time deposits of 5 years, the rate of interest is 6.7%. There is no tax on depositing money in this account, but the interest earned on investments is taxed. The minimum investment amount is Rs 200 and there is no maximum limit. Any number of accounts can be opened by a person. It can be transferred from one post office to another branch.
4-Senior Citizen Savings Scheme
7.4% interest is being available in Senior Citizen Savings Scheme. This account is solely for senior citizens. There is no tax on investment in this account, but the interest earned is taxable. To join this scheme, the minimum age should be 60 years. One can deposit up to Rs 15 lakh in one account per person. If you invest Rs 13 lakh in this scheme, then you will get Rs 24,900 every quarter. After the completion of the plan period, it can be extended for the next 3 years.
5-Sukanya Samridhi Yojana
This scheme is for daughters and accounts can be opened for daughters up to the age of 10 years. At present, 7.6% interest is being given on this. There is no tax on investment money and there is no tax on interest earned. Only one account can be opened in the name of a girl child. Tax exemption of up to Rs 1.5 lakh is available in this account. At the age of 18, the girl can withdraw 50 percent of the amount from the account. The maturity of the account is done at 21 years. in the year
6-Public Provident Fund
Public Provident Fund or PPF is currently getting 7.1% interest. No interest is charged on its investment. Interest earned is also not taxed. This scheme is run for 15 years. You can deposit a minimum of Rs 500 in this scheme and a maximum of Rs 1.5 lakh in a year. Money cannot be deposited more than 12 times in a year in installments. After the account maturity after 15 years, it can be extended for the next 5 years.
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