Post Office Savings Schemes : When it comes to savings schemes, the name of small savings schemes or post office savings schemes comes first. Here you will get more returns than the FDs of most banks. These savings schemes are government-backed. Therefore, the risk here is very low. The government fixes the interest rates for small savings schemes every three months. Let us know about those 5 small savings schemes, where you get more returns than bank FDs.
Senior Citizen Savings Scheme (SCSS)
People above 60 years of age can invest in this scheme. This scheme is currently offering 8.2 percent annual interest. In this scheme, a lump sum amount has to be invested in multiples of Rs 1000. This investment can be up to a maximum of Rs 30 lakh. This investment also gets tax exemption under Section 80C of the Income Tax Act. Investors in this scheme get the benefit of regular income.
Kisan Vikas Patra
This is a savings certificate issued by the Government of India. It gives guaranteed returns. There is no benefit of tax exemption here. Currently, the Kisan Vikas Patra has a compound interest rate of 7.5 percent per annum. In this scheme, the investors’ money doubles in 115 months i.e. 9 years and 7 months. There is no maximum limit of investment here.
Post Office Monthly Income Scheme (MIS)
Investors get the facility of getting a stable income in this scheme. Minimum Rs 1500 and maximum Rs 9 lakh can be invested in this scheme. The maximum limit for a joint account is Rs 15 lakh. Tax is levied on the interest earned. Also, there is no benefit of tax exemption under section 80C. This scheme is giving 7.4 percent annual interest. Interest is paid monthly.
National Savings Certificates
This is a guaranteed investment and savings plan. Here you get 7.7 percent annual compound interest rate. It is paid on maturity. A minimum of Rs 1000 can be invested in this scheme. There is no maximum limit. Any number of accounts can be opened under this scheme. You get the benefit of tax exemption on investment.
Mahila Samman Savings Certificate
This scheme has been launched by the Government of India to promote the culture of savings among Indian women. There is no tax benefit in this scheme. Interest income is taxable. Tax is deducted according to the income tax slab of the investor. This scheme is giving 7.5 percent annual interest. This is a quarterly compounded interest rate.
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