There are many such schemes of the Post Office which are of great use in terms of small savings. Investing in these post office small savings schemes not only gives government guarantees but also benefits from tax exemption along with good returns. Under section 80C in income tax, tax exemption is available on investment of Rs 1.5 lakh per annum. In such a situation, you can take advantage of these schemes. Let’s know everything about these schemes…
1. Post Office Monthly Income Scheme (POMIS):
If you want to invest with less risk then Post Office Monthly Income Scheme can be a better option for this. In the Monthly Income Scheme, you will get interested at the rate of 6.6 percent. The interest amount is deposited in your savings account every month. The duration of the Monthly Income Scheme (MIS) scheme is 5 years, which can be extended for a further period of 5 years. Being a post office scheme, it is completely risk-free. You can keep a maximum of Rs 4.5 lakh in this account. However, this scheme also has the facility of a joint account. If you open a joint account, then there is a limit up to Rs 9 lakh for this.
2. Senior Citizen Savings Account (SCSS):
There is a Senior Citizen Saving Scheme (Post Office Senior Citizen Saving Scheme) scheme in the post office. At present, this scheme is getting interested at the rate of 7.4 percent. The interest earned on this is credited to the account on quarter to quarter basis. The special feature of this scheme is that it also provides a tax exemption facility under section 80C of the Income Tax Act.
3. National Savings Certificate (NSC):
Another scheme of the post office is also the National Saving Certificate. National Savings Certificate is exactly like Fixed Deposits. Like Public Provident Fund (PPF), there is no tax on interest on this scheme. On this scheme, you get interested at the rate of 6.8 percent, which is calculated on an annual basis. But, the amount of interest received on this is available on the maturity of the scheme. In this scheme also, the amount deposited is tax exempted under section 80C of the Income Tax Act.
4. Time Deposit in the Post Office:
There is also a scheme called Time Deposit in the post office, whose maturity is for 5 years. You can start investing in this scheme with a minimum of Rs 200. The interest for this scheme is available at the rate of 5.5 percent for the first 3 years. At the same time, in the fifth year, it gets interested at the rate of 6.7 percent. The interest earned on this is paid annually. But, it should also be noted that under this scheme interest is paid every quarter. There is no tax on the interest earned on this scheme.
5. Kisan Vikas Patra (KVP):
Kisan Vikas Patra (KVP) is a big hit among the common people in the small savings scheme. You can buy it by going to your neighborhood post office. It starts from 1000 rupees. This is a kind of certificate, which you can buy from the post office. It is issued in certificate form like a bond. This interest is fixed by the government. The government fixes interest rates every three months. Based on the interest rate of 6.9 percent, your money will double under this scheme is 9 years and 2 months i.e. 110 months.
