Post Office Schemes: Some post office schemes are very useful. Tax exemption is also available on these plans.
For the last few days, we are all seeing that there is a lot of ups and downs in the stock market. In such a situation, many people do not like to invest in the risky equity market. For such people, the post office keeps coming up with the best investment options. Investing in Post Office Small Savings Scheme (Post Office Small Savings Scheme) helps you in giving higher returns in the long term. Here we are going to tell you about 3 post office saving schemes which give guaranteed returns. These 3 schemes are Post Office Recurring Deposit Account, Post Office Time Deposit Account (POTD) and Post Office – National Savings Certificate (NSC). These schemes come with a lock-in of five years except for fixed deposits. There are many benefits of investing money in these post office savings schemes.
You will get guaranteed returns here and it is safe to invest in this scheme as these schemes are backed by the post office. Tax deduction is also available in two of these schemes.
Post Office Recurring Deposit Account (RD)
If you are looking for a safe RD (Recurring Deposit) with guaranteed returns for 5 years, then Post Office Recurring Deposit Account is for you. This scheme offers 5.8% interest rate on RD. The interest rate is compounded quarterly. You can start investing in this scheme with a minimum of Rs.100 per month or any amount in multiples of Rs.10. There is no maximum investment limit in this scheme.
Post Office Time Deposit Account (POTD)
As the name suggests, this scheme is a type of post office FD. Under this scheme, you can deposit money in the post office for one, two, three or five years. 5.5 percent interest is available on FDs of one, two and three years. If you are looking for good returns, then you have to invest in time deposit for 5 years. It offers the highest up to 6.7% on 5 year fixed deposit scheme. Also, you can avail income tax exemption under section 80C of the Income Tax Act, 1961. Under this scheme, you can open an account with a minimum deposit of Rs.1000. You can invest as much as you want.
Post Office – National Savings Certificate (NSC)
Post Office NSC scheme comes with a lock-in period of 5 years. This is the third scheme which offers an attractive interest rate of up to 6.8% for a tenure of 5 years. Under this scheme, you can invest a minimum of Rs 1000 and in multiples of Rs 100. There is no maximum deposit limit. This plan allows you to withdraw your money only after the completion of the lock-in period of 5 years. However, subject to certain conditions, you can make a premature exit. The amount deposited under this scheme is eligible for deduction under section 80C of the Income Tax Act.
