New Delhi. If you are doing any new planning for savings, then a special savings scheme of the Post Office can be beneficial for you. There is also a good income every month through this scheme. These schemes include National Savings Certificates (NSC), Post Office Time Deposit (POTD) and Kisan Vikas Patra (KVP). Let us tell you everything about these schemes:
National Savings Certificates (NSC)
One can also invest in this scheme in the post office. Investment in National Savings Certificate (NSC) earns an interest of 6.8 per cent every year. Interest is calculated every year. At the same time, the interest amount is given only after the completion of the investment period. Minimum one thousand rupees can be invested in this scheme. There is no maximum limit for investment in the scheme. The total investment period under the NSC scheme of the post office is 5 years. According to India Post, the account under this scheme can be opened with a minimum of Rs 100.
Post Office Time Deposit (POTD)
Like a bank, you can also do FD in the post office. This scheme is available in the post office in the name of time deposit, in which you can deposit money for 1 year, 2 years, 3 years and 5 years. The advantage is that here the interest rate on FD is higher than that of the bank. Under Post Office Time Deposit, 6.7 percent annual interest is being given on deposits of 5 years. Tax exemption under section 80C is available on time deposit of five years. Post office fixed deposit account can also be opened by a person through cash or cheque.
Kisan Vikas Patra (KVP)
If you want to double your investment amount then KVP is the right option. As far as the interest rates of other small savings schemes are concerned, the government reviews them every quarter. When the money invested in this way will double depends on the interest rates. The interest rate for KVP in the first quarter of FY 2021 has been fixed at 6.9 percent. Here your investment will double in 124 months. If you invest Rs 1 lakh in lump sum then you will get Rs 2 lakh on maturity. 124 months is the maturity period of this scheme. This scheme does not come under the Income Tax Act 80C. Therefore, whatever return comes, it will be taxed. TDS is not deducted in this scheme.
