Post Office schemes interest rates- You can take advantage of these savings schemes. The interest rates on the post office scheme are fixed under the small savings schemes of the government.
Small post office schemes are of great use. Investing in them not only provides government guarantee. The tax rebate can be availed only with attractive returns. Under Section 80C of Income Tax, taxpayers get a rebate of up to Rs 1.5 lakh in a financial year. You can take advantage of these savings schemes. Interest rates on post office schemes are fixed under small savings schemes of the government. It is revised on a quarterly basis.
Time Deposit or Fixed Deposit (FD)
A lump sum of money can be invested in a post office time deposit for a fixed period. In this, you can take advantage of fixed returns and interest payments. Post office time deposit (TD) or fixed deposit (FD) account offers interest rates for 4 maturity period – one year, two years, three years and five years. According to India Post’s website, investing under a 5-year fixed deposit gives the benefit of tax exemption under Section 80C of the Income Tax Act, 1961. Time deposits ranging from 1 to 3 years get 5.5 percent interest. At the same time, 6.7 percent interest is available on 5-year time deposit.
Senior Citizen Saving Scheme (SCSS)
For Senior Citizens, the Post Office Senior Citizen Saving Scheme (SCSS) is very effective in making money. At present, the scheme earns 7.4 percent interest annually, which is fixed on a quarterly basis on 31 March / 30 June / 30 September / 31 December. If the interest is more than Rs 10,000 per annum, then TDS is deducted at the source. Investments under this scheme get the benefit of tax exemption under Section 80C of the Income Tax Act, 1961.
National Saving Certificate (NSC)
This post office scheme is also very popular. Interest is getting 6.8 percent on an annual basis on investment in Post Office National Saving Certificate (NSC). In this, the interest is calculated on an annual basis, but the amount of interest is given only on maturity. Tax is exempted under Section 80C of the Income Tax Act on the amount deposited in the National Saving Certificate. NSC is a scheme which is operated by the Department of Economic Affairs.
Public Provident Fund (PPF)
You can also avail tax exemption on investment in Post Office Public Provident Fund (PPF). Currently, the interest on deposits in PPF accounts is 7.1 percent per annum. The interest on the deposit is calculated on an annual basis, which means that it is added to the principal every year. Tax calculation on PPF falls under the category of exemption, rebate, rebate (EEE). This means that the income from returns, maturity amount and interest is completely tax free.
