Post Office Savings Scheme: The Indian stock market has experienced a lot of volatility in the last few days, causing people to hesitate in investing in risky equity markets. As a result, many are turning to the post office to invest their hard-earned money. The Post Office Small Savings Scheme is an attractive option for those seeking higher guaranteed returns in the long term. Let's take a closer look at some of the small savings schemes offered by the post office that can help meet various needs.
There are three schemes in particular that offer tremendous guaranteed returns: the Post Office Recurring Deposit Account, the Post Office Time Deposit Account (POTD), and the Post Office National Savings Certificate (NSC). Except for fixed deposits, all these schemes come with a lock-in period of 5 years. Investing in these schemes is considered very safe since they are offered by the post office of the central government, and you can be assured of guaranteed returns. Two of the schemes also offer tax deductions as an added benefit.
The Post Office Recurring Deposit Account is a safe option for those seeking guaranteed returns for 5 years. You can invest in this scheme with a minimum of Rs 100, or any amount in multiples of Rs 10, every month. The interest rate of 5.8 percent is available quarterly, and there is no maximum investment limit.
The Post Office National Savings Certificate (NSC) scheme is another option with a lock-in period of 5 years. This scheme offers an attractive interest rate of up to 7 percent for a period of 5 years. You can invest a minimum of Rs 1000 and in multiples of Rs 100, and there is no maximum deposit limit. You can withdraw your investment only after the completion of the lock-in period, but there are certain conditions under which you can withdraw prematurely. The amount invested in this scheme is eligible for deduction under section 80C of the Income Tax Act.
The Post Office Time Deposit Account is a type of FD scheme that allows you to deposit your money for 1, 2, 3, or 5 years. You can invest as much as you want, with a minimum of Rs 1000. The interest rate for FDs of one, two, and three years is 6.6 percent, while for five years, it is 7 percent, making it the best option for those looking for good returns. You can also benefit from income tax exemption under section 80C of the Income Tax Act, 1961.
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