The Post Office Savings Schemes are government-backed small savings schemes in India, designed to encourage savings among people while offering safe returns. They are popular because they are secure, backed by the Government of India, and provide steady interest rates.
Here’s a quick breakdown of the main Post Office Savings Schemes:
1. Post Office Savings Account
- Works like a regular bank savings account.
- Minimum balance required: ₹500.
- Interest rate: Around 4% per annum (taxable).
- Provides cheque and ATM facilities.
2. Post Office Recurring Deposit (RD)
- Tenure: 5 years.
- Monthly deposits start from ₹100.
- Interest is compounded quarterly.
- Good for disciplined small savings.
3. Post Office Time Deposit (TD)
- Tenure options: 1, 2, 3, or 5 years.
- Interest rates vary depending on tenure.
- 5-year TD qualifies for tax deduction under Section 80C.
4. Post Office Monthly Income Scheme (MIS)
- Tenure: 5 years.
- Minimum investment: ₹1,000.
- Maximum: ₹9 lakh (single) / ₹15 lakh (joint).
- Provides fixed monthly interest payout.
5. Senior Citizens Savings Scheme (SCSS)
- For individuals above 60 years.
- Tenure: 5 years (extendable by 3 years).
- Maximum investment: ₹30 lakh.
- Interest paid quarterly.
- Eligible for tax benefits under Section 80C.
6. Public Provident Fund (PPF)
- Tenure: 15 years (extendable in blocks of 5 years).
- Minimum deposit: ₹500 per year.
- Maximum: ₹1.5 lakh per year.
- Interest is tax-free.
- Eligible for Section 80C tax deduction.
7. National Savings Certificate (NSC)
- Tenure: 5 years.
- Minimum investment: ₹1,000.
- Interest compounded annually but paid at maturity.
- Eligible for Section 80C tax deduction.
8. Kisan Vikas Patra (KVP)
- Doubles your investment in a fixed period (around 115 months currently).
- Minimum investment: ₹1,000.
- No maximum limit.
- Not eligible for tax benefits.
✅ Why choose Post Office Schemes?
- Government-backed = very safe.
- Suitable for conservative investors.
- Options for short-term, medium-term, and long-term savings.
- Some schemes offer tax benefits.
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