The post office has not cut interest rates for the July-September quarter. In such a situation, if you want to invest in such a place where you will get more interest and your money is also safe, then you can invest in PPF, Kisan Vikas Patra and National Saving Certificate Scheme of the Post Office. By investing in these, you can also take advantage of tax exemption under section 80C. The country’s largest bank SBI is offering a maximum interest of 5.4% on fixed deposits. We are telling you about these plans.
- 7.1% interest on PPF
Public Provident Fund (PPF) can be opened with only Rs 500, but then it is necessary to deposit Rs 500 every year in one go. The maximum amount that can be deposited in this account every year is Rs 1.5 lakh.
- This scheme is for 15 years, which cannot be withdrawn in the middle. But it can be extended for 5-5 years after 15 years.
- It cannot be closed before 15 years, but after 3 years loan can be taken against this account.
- The government reviews the interest rates every three months. This interest rate can be more or less. At present, 7.1% interest is being given on this account.
- By investing in these schemes, the benefit of tax exemption up to Rs 1.5 lakh can be availed under 80C.
- PPF comes under EEE category of income tax. This means that income from returns, maturity amount and interest are exempted from income tax.
6.9% interest is getting in KVP
- Currently, 6.9% interest is being given in Kisan Vikas Patra (KVP) Savings Scheme.
- There is no maximum limit to invest in KVP. However, your minimum investment should be Rs 1000.
- The age of the investor should be at least 18 years. In addition to a single account, there is also the facility of a joint account.
- Minors can also join the scheme, but it will have to be supervised by their parents.
- If you want to withdraw your investment then you have to wait for at least 2.5 years. It has a lock-in period of two and a half years.
- By investing in these schemes, the benefit of tax exemption up to Rs 1.5 lakh can be availed under 80C.
- You can invest any amount in NSC. There is no maximum investment limit in this.
6.8% interest is getting in NSC
- Investment in Post Office National Savings Certificate (NSC) is getting 6.8% per annum interest.
- In this, the interest is calculated on an annual basis, but the amount of interest is paid only after the duration of the investment.
- To open an NSC account, you have to invest a minimum of Rs 1000.
- This account can be opened in the name of a minor and a joint account can also be opened in the name of 3 adults.
- The account can also be opened in the name of a minor above the age of 10 years under the supervision of the guardian.
- Its maturity period is 5 years. Before this you cannot exit the scheme.
- By investing in these schemes, the benefit of tax exemption up to Rs 1.5 lakh can be availed under 80C.
- You can invest any amount in NSC. There is no maximum investment limit in this.
Where is it right to invest?
It will be completely safe to invest in all these three schemes. If we talk about interest, then PPF is getting more interest than KVP and NSC schemes. But it has a lock-in of 15 years. While there is a lock-in of 5 years in NSC and 2.5 years in KVP. PPF comes under EEE category of income tax. This means that income from returns, maturity amount and interest are exempted from income tax. At the same time, only investment in NSC and KVP can save tax. You can invest in these three schemes according to your choice.
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