Post Office Schemes: Risk Free Investment in 2023, Every Penny Safe, Return Guaranteed, These Are Evergreen Schemes

Post Office Schemes

Post Office Small Savings Schemes: In the last days of the year, there has been an increase in the stock market. Sometimes there is a boom in the market and sometimes there is an atmosphere of selling. The new variant of Kovid 19 has alerted the investors. At the same time, due to the fear of recession, the sentiments of the market are not very good. There may be pressure in the market for the next few months. In such a situation, instead of equity or equity linked schemes, many investors want to invest their money somewhere safe, where they can get better returns. If you are also one of them, then you can choose the evergreen scheme of the post office. You can balance your portfolio by allocating a part of your assets in small savings as well.

More Than One Scheme

The Post Office Small Savings Scheme is very popular, especially among those investors who do not want to take market risk. These include National Savings Time Deposit Scheme (TD), Monthly Income Scheme (MIS), Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Sukanya Samdhi Yojana (SSY), Senior Citizens Savings Scheme ( SCSS), National Savings Recurring Deposit (RD).

Government guarantee on deposits

The government has a sovereign guarantee on the savings scheme of the post office. That means every single penny of yours is safe here. Even though the interest rate here is not very high, but the return is guaranteed at the fixed rate. In these, the benefit of tax exemption is also available on some schemes. In these, returns are received according to the fixed interest.

Sukanya Samriddhi Yojana (SSY)

  • Interest rate: 7.6 per cent per annum
  • Maturity: 21 Years
  • Maximum deposit: 1.50 Lakh per annum
  • Minimum deposit: Rs 250

Tax Benefit: EEE Category. That is, tax exemption under section 80C of Income Tax Act on investment of 1.50 lakhs annually, tax exemption on interest earned and amount received on maturity is also tax free.

Public Provident Fund (PPF)

  • Interest rate: 7.1 per cent per annum
  • Annual maximum investment: Rs 1.5 lakh
  • Minimum investment: Rs 500
  • Maturity: 15 years, but with the option to extend further by 5 years

Tax Benefit: EEE Category. That is, tax exemption under section 80C of Income Tax Act on investment of 1.50 lakhs annually, tax exemption on interest earned and amount received on maturity is also tax free.

Senior Citizens Savings Scheme (SCSS)

  • Interest rate: 7.6 per cent per annum
  • Maturity: 5 years
  • Maximum Deposit: 15 Lakh
  • Minimum deposit: Rs 1000

Tax benefits: 1.50 per annum is deducted under 80C on investment. However, TDS will be deducted if the interest earned in a financial year exceeds Rs 50,000.

Monthly Income Scheme (MIS)

  • Interest rate: 6.7 per cent per annum
  • Maturity: 5 years, then a new account can be opened for 5 years at the interest of that time
  • Maximum Deposit: 4.50 Single Account, 9 Lakh Joint Account
  • Tax Benefit: No

National Savings Certificate (NSC)

  • Interest rate: 6.8 per cent per annum
  • Maturity: 5 years
  • Maximum Deposit: No Limit
  • Minimum deposit: Rs 1000

Tax Benefit: The amount invested up to Rs 1.50 is eligible for tax exemption under section 80C of the Income Tax Act.

Time Deposit (TD)

  • Interest on 1 year scheme: 5.5% per annum
  • Interest on 2 year scheme: 5.7% per annum
  • Interest on 3-year scheme: 5.8% per annum
  • Interest on 5 year scheme: 6.7% per annum
  • Maximum Deposit: No Limit
  • Minimum deposit: Rs 1000

Tax Benefits: Tax exemption under 80C on the amount invested up to Rs.1.50. But if the income from interest is 40 thousand or more then TDS will be deducted. The limit for senior citizens is 50 thousand.

Kisan Vikas Patra (KVP)

  • Interest rate: 7% per annum
  • Maturity: 123 months
  • Maximum Deposit: No Limit
  • Minimum deposit: Rs 1000
  • Tax Benefit: No

Recurring Deposit (RD)

  • Interest rate: 5.8 per cent per annum
  • Maximum Deposit: No Limit
  • Minimum deposit: Rs 100 monthly
  • Maturity: 5 years, which can be extended for further 5 years.
  • Tax Benefit: No
  • If the interest income from RD is more than Rs 40,000, then 10% TDS, this limit for senior citizens is Rs 50,000.

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