Post Office: Many Post Office schemes are becoming very popular in terms of excellent returns and safe investments. Many savings schemes are being run here for everyone, from children to the elderly. One of these special schemes helps investors earn millions through interest alone. Post office savings schemes give investors multiple options with interest rates of up to 8.2%. Most of these post office schemes also provide tax exemption under Section 80C of the Income Tax Act. Today we are talking about the top 5 post office savings schemes.
Senior Citizen Savings Scheme (SCSS)
The Senior Citizen Savings Scheme is launched and supported by the Government of India. Senior citizens residing in India can open the account and invest a lump sum amount in the scheme. They can open the account individually or jointly and get regular income with tax exemption. Interest rate: 8.2% p.a.
Kisan Vikas Patra
Kisan Vikas Patra is a very popular scheme. It’s a savings certificate issued by the Government of India. The scheme offers a fixed interest rate and guaranteed returns. The amount invested doubles in 115 months, or 9 years and 7 months. However, there is no income tax exemption on investment. Interest rate: 7.5% compounded annually.
Post Office Monthly Income Scheme Account (MIS)
Post Office Monthly Income Scheme gives investors an opportunity to earn stable income. One can invest a minimum of Rs 1,500 and a maximum of Rs 9 lakh, while the maximum limit for joint accounts is Rs 15 lakh. The interest is taxable and is not exempt under Section 80C. Interest rate: 7.4% p.a.
National Savings Certificate (NSC)
The National Savings Certificate is a guaranteed investment and savings scheme with complete capital security, just like other fixed-income instruments. Any person can open a single account, while three persons can open a joint account. Guardians can also operate an NSC account on behalf of a minor or unwell person. Interest rate: 7.7% compounded annually but payable at maturity.
Mahila Samman Savings Certificate
Mahila Samman Savings Certificate is an initiative launched by the government that aims to promote a culture of savings among Indian women. However, the scheme does not offer any tax exemption. Interest income is taxable, wherein tax is deducted based on the individual’s income slab. Interest rate: 7.5% per annum interest.