Post Office Schemes: By investing in many investments of Post Office, you can get more returns than the FDs of banks. Let’s know about some schemes.
Post Office Schemes: The post office savings scheme is very popular among small investors. The reason for this is that they get more returns than the bank without any risk. Let us tell you that post office savings schemes give investors many options with interest rates up to 8.2%. Most of these post office schemes also provide income tax exemption under section 80C of the Income Tax Act. Today we are telling about the top 5 Post Office savings schemes.
Senior Citizen Savings Scheme (SCSS)
Senior Citizen Savings Scheme is backed by the Government of India. Senior citizens living in India can open an account and invest a lump sum amount in the scheme. They can open an account individually or jointly and get regular income with tax exemption.
Interest rate: 8.2% per annum.
Kisan Vikas Patra
Kisan Vikas Patra is a savings certificate issued by the Government of India. This scheme offers a fixed interest rate and guaranteed returns. However, investments in it are not eligible for income tax exemption.
Interest rate: 7.5% compounded annually (invested amount doubles in 115 months or 9 years and 7 months).
Post Office Monthly Income Scheme Account (MIS)
The Post Office Monthly Income Scheme gives investors an opportunity to earn a steady income. One can invest a minimum of Rs 1,500 and a maximum of Rs 9 lakh, while for joint accounts the maximum limit is Rs 15 lakh. Interest is taxable and not exempted under Section 80C.
Interest rate: 7.4% per annum (payable monthly).
National Savings Certificate (NSC)
The National Savings Certificate is a guaranteed investment and savings scheme with full capital protection just like other fixed income instruments. Any individual can open a single account while three persons can open a joint account. A guardian can also operate an NSC account on behalf of a minor or an unwell person.
Interest Rate: 7.7% compounded annually but payable on maturity.
Mahila Samman Savings Certificate
Mahila Samman Savings Certificate is an initiative launched by the government aimed at promoting the culture of savings among Indian women. However, the scheme does not offer any tax exemption. The interest income is taxable, with tax being deducted based on the income slab of the individual.
Interest Rate: 7.5% interest per annum. The interest will be compounded on a quarterly basis and will be credited to the account and paid at the time of closing the account.
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