We are always looking for new options for a better tomorrow. Despite the investment options of mutual funds and stock markets in the country, many investors still give more importance to security. Post office schemes have been a major attraction among the means of providing safe returns. People often spend their money in the wrong place for good returns. But, there is a need for such schemes, which not only give better returns but also reduce the risk. One such option is the post office, where there are many such schemes which keep your tomorrow safe and the returns are also very good.
Get double benefit: Small savings schemes of post office are of great use. Investing in them not only provides government guarantee. Rather, tax benefits are also available with good returns. Under Section 80C of the Income Tax Act, up to Rs 1.5 lakh is exempted in a financial year. You can use these savings schemes to claim tax exemption.
Monthly Income Scheme (MIS) If you do not want to invest in high risk schemes, then Monthly Income Scheme (MIS) is a better option for you. In the monthly income scheme, the customer gets 6.60 percent interest. It is evident in the name of Monthly Income Scheme that the interest amount is given every month. The amount of interest is put in your savings account every month. The duration of MIS is 6 years. In this, a minimum of 1500 rupees is to be kept in your account. Only a maximum of 4.5 lakh rupees can be kept in the account. The scheme also has the facility of a joint account. Its maximum limit is 9 lakh rupees.
Saving Account (SA): Customers who open a post office saving account get 4% interest annually. With cash amount of Rs 20, any person can open a savings account at the post office. At the same time, the interest in the recurring deposit account is 5.8 percent. Deposit basis is a minimum of 10 rupees every month in the recurring deposit scheme. There is no maximum limit. There is also a facility to grow at the same interest rate for the next five years.
Senior Citizen Saving Scheme (SCSS) Post Office Senior Citizen Saving Scheme (POSCSS) is a five-year plan for senior citizens. Currently, the scheme is getting an annual interest rate of 7.4 percent. Interest is credited to the account on a quarterly basis. In this scheme also, there is an advantage of exemption under Section 80C of Income Tax Act on investment. If the interest amount is more than 10000 rupees per annum, then TDS is deducted at source.
National Savings Certificate (NSC) National Savings Certificate is exactly like a fixed deposit. Like PPF, here also the interest is tax free and you get 8 percent interest. Interest is calculated on an annual basis, but the amount of interest is met on maturity. The amount deposited in the National Saving Certificate gets tax exemption under Section 80C of the Income Tax Act. NSC is a scheme which is operated by the Department of Economic Affairs.
Time Deposit Scheme (TDS) Time deposit scheme is for five years. Which is started from 200 rupees. The interest rate for the first three years is 5.50 percent. In the fifth year, 6.70 percent interest is earned. Interest accrues annually. However, it is added on a quarterly basis. The interest received in the scheme is absolutely tax free.