Post office saving schemes: Banks have reduced interest on fixed deposits (FD). Banks have reduced this rate after RBI cut the repo rate twice in a row. Senior citizens and investors who do not want to take risk on investments have suffered the most due to the reduction in interest on FD. However, the options are not over yet. There are many such saving schemes in Post Office, in which interest up to 8.2% is being given. That is, more than bank FD. Let us know about those schemes.
Senior Citizen Savings Scheme
Senior Citizen Savings Scheme, in which the minimum investment is Rs 1,000 and the maximum investment is Rs 30 lakh. This scheme also offers interest at the rate of 8.20%. The duration of this scheme is 5 years and the minimum age for investment is 60 years. It provides income tax exemption under section 80C.
Public Provident Fund (PPF)
Public Provident Fund, in which the minimum investment is Rs 500 and the maximum investment is Rs 1.5 lakh per year. This scheme is getting interest at the rate of 7.10%. The investment period is 15 years and it provides tax exemption under section 80C.
Sukanya Samriddhi Scheme
Sukanya Samriddhi Yojana, in which the minimum investment is Rs 250 and the maximum investment is Rs 1.5 lakh per year. Money can be invested in this scheme in the name of daughters. Currently, it is getting an interest rate of 8.20%. This scheme allows opening an account for each girl child and provides tax exemption under section 80C.
5-year NSC
The 5-year NSC, with a minimum investment of Rs 1,000 and no maximum investment limit, offers an interest rate of 7.70%. It offers tax benefits under Section 80C and there is no TDS deduction.
Kisan Vikas Patra
A minimum investment of Rs 1,000 can be made in Kisan Vikas Patra and there is no maximum investment limit, it offers an interest rate of 7.50%. The investment can be redeemed after 2.5 years and there is no tax benefit on it.
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