For a better and more secure future, it is important to invest money in prudent schemes. Although the equity market offers much higher returns, it poses a high risk as well. This risk and volatility in stock markets make people wary of investing in risky instruments. The banks, on the other hand, are offering the all-time low-interest rates on FDs and RDs. The rates are so low that if we adjust these with inflation they will give negative returns. In such a case, if you want to stay away from the roller coaster of the equity market and earn a good return, then Post office small savings schemes are an apt choice. Today we are telling you the 5 most popular savings schemes of Post office that will fetch you assured and higher returns than conventional instruments like Fixed deposits.
Sukanya Samriddhi Yojana:
If you are planning to save money for the future of your girl child, then you must put money into this scheme. The post office’s Sukanya Samriddhi Account scheme is getting the highest interest of 7.6 percent and it will take 9 years to double the money in this scheme. Under this scheme, a minimum amount of Rs 250 and a maximum of Rs 1,50,000 can be deposited in a financial year. After Rs 250 you can deposit money in multiples of Rs 50. A lump sum amount can also be deposited in this scheme. There is no limit on the number of deposits in a month or a financial year. Apart from the high-interest rate, there are several tax benefits available in this plan.
Senior Citizen Savings Scheme:
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This scheme is for senior citizens or people above 55 who are retired on superannuation. The Post Office Senior Citizen Savings Scheme is currently offering an interest rate of 7.4% and it doubles your money in 9.7 years. Money can be deposited in the account only once in multiples of Rs 1000, subject to a maximum of Rs 15 lakh. The tenure of this scheme is 5 years which can be extended to 8 years. The scheme also provides tax benefits.
Public Provident Fund:
If you planning to invest for the long term, one of the best schemes is Post Office’s 15-year Public Provident Fund is currently paying 7.1 percent interest, which would take about 10 years to double your money at this rate. A minimum of Rs 500 and a maximum of Rs 1,50,000 can be deposited in a financial year under PPF. Money can be deposited in a lump sum or installments. The interest accumulated in this is also tax-free apart from other tax benefits available in this scheme.
National Savings Certificate Scheme:
NSCS is also a very popular scheme among those who want guaranteed returns. This government saving bond offers 6.8% interest which comes with a lock-in period of 5 years. A minimum deposit of Rs 1000 and multiples of Rs 100 can be made under this scheme. There is no maximum limit in this either, however, the tax benefits are only available up to an investment of Rs. 1,50,00.
Kisan Vikas Patra:
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This is one of the most popular savings certificate schemes of the India Post. At present, 6.9 percent interest is being offered in the Kisan Vikas Patra (KVP) scheme. The tenure of this scheme is 124 months. A minimum deposit of Rs 1000 and then in multiples of Rs 100 can be made under this scheme. There is no maximum limit in this. The investment is can be used for tax exemption under section 80C of the Income Tax Act.