Post Office Small savings: Due to the corona virus, investors are once again looking for safe investment ment rather than equity.
Post Office Small Savings: Corona virus has become completely uncontrollable in the country. For the last few days, more than two and a half million cases are coming daily. Seeing the growing crisis of the epidemic, once again the investors’ anxiety is bound to increase. The possibility of further decline in the stock market cannot be ruled out. In such a situation, once again investors are looking for safe investment instead of equity. In this condition, if you are also a Conservative investor and do not like to take the risk of the market, then the post office Small Savings Scheme can be useful for you. While it is completely safe, the money is guaranteed to double in some of their schemes. These include Kisan Vikas Patra, PPF, NSC and Time Deposit Scheme.
Learn duration from rule of 72
Experts consider the rule of 72 to be a precise formula, through which it is decided that in how many days your investment will double. Consider it as if you have invested in a scheme, in which the interest is 8% per annum. In this case, you have to divide 8 in 72 under rule 72. 72/8 = 9 years, ie under this scheme your money will double in 9 years.
Kisan Vikas Patra ( KVP)
- Rate of Interest: 6.9%
- Time to double the money: 72 / 6.9 = 10.43 years
- Your money will double here in 124 months
- Minimum investment: Rs 1000
- Maximum Investment: No Limit
- Single account as well as joint account facility
- An account can be opened under the supervision of a guardian in the name of a minor over 10 years of age.
- Nominee also has the facility
National Savings Certificate ( NSC)
- Rate of Interest: 6.8%
- Time to double the money: 72 / 6.8 = 10.58 years
- Your money will double here in 126 months
- Minimum investment: Rs 1000
- Maximum Investment: No Limit
- Single account as well as joint account facility
- An account can also be opened under the supervision of a guardian in the name of a minor over 10 years of age.
- Nominee also has the facility
- Exemptions under Section 80C of the Income Tax Act on investment.
Public Provident Fund ( PPF)
- Rate of Interest: 7.1%
- Time to double the money: 72 / 6.8 = 10.14 years
- Your money will double here in 120 months
- Minimum investment: Rs 500 annually
- Maximum investment: 1.5 lakh rupees annually
- Facility to deposit 12 installments in a year in the account
- Any person can open an account with 500 rupees in a post office.
- Only a single account can be opened in a PPF account. There is no facility of a joint account.
- PPF accounts can also open their child’s name. After 18 years of age, he gets the right to maintain the account.
- Nominee also has the facility
- Exemptions under Section 80C of the Income Tax Act on investment.
- Interest received, completely tax free
5 Year Time Deposit ( FD) at Post Office
- Rate of Interest: 6.7%
- Time to double the money: 72 / 6.8 = 10.74 years
- Your money will double here in about 128 months
- Minimum investment: Rs 1000
- Maximum Investment: No Limit
- Single account as well as joint account facility
- An account can also be opened under the supervision of a guardian in the name of a minor over 10 years of age.
- Nominee also has the facility
- Exemptions under Section 80C of the Income Tax Act on investment
