Post Office Saving Schemes: Have you ever heard people talking about post office saving schemes? There's a good reason for that. These schemes offer a safe and secure way to save money for the long term and get decent returns on your investment. That's why millions of people with middle-income choose these schemes over other investment options. The post office saving schemes are available at over one lakh post offices all over the country, and the best thing about them is that they are government-backed, which means that you can trust them to provide guaranteed returns.
Another great thing about these schemes is that they offer tax benefits up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Let's take a look at five post office saving schemes, and you can choose the one that fits your investment objectives the best.
Sukanya Samriddhi Yojana, open an account for a girl child below 10 years old, and let her take over once she becomes an adult. With a current interest rate of 7.6 per cent, you can deposit a minimum of Rs 250 and a maximum of Rs 1.5 lakh in a financial year, and enjoy tax exemption under Section 80C of the Income Tax Act.
For the Public Provident Fund, deposit as low as Rs 500 and a maximum of Rs 1.5 lakh in a single financial year, with a current yearly compound interest rate of 7.1 per cent and a maturity period of 15 years. Benefit from a threefold tax benefit, including exemption from tax on interest earned, and maturity amount.
If you're aged 60 years or older, open a Senior Citizen Savings Scheme account, which offers a competitive 8 per cent interest rate per year and a five-year maturity period. With the option to renew the term once it reaches maturity, you can invest up to Rs 15 lakh for Section 80C tax benefits.
Similar to bank fixed deposits, the Post Office Time Deposit Account offers an interest rate of 7 per cent on a five-year term deposit. You can invest a minimum of Rs 1,000, and there is no limit to the maximum investment. However, only investments up to Rs 1.5 lakh qualify for tax benefits under Section 80C.
Finally, the National Savings Certificates (NSC) scheme is a great option if you want to invest a minimum of Rs 1,000 and thereafter, in multiples of Rs 100. There is no upper limit, and the NSC scheme has a maturity period of five years. The current rate of interest is 7 per cent, and you can claim a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. The minimum age limit is 10 years.
Read more: How to use the income tax department's tax calculator for calculating your taxes?
