Want More Returns Than FD: Here Are Indian Post Schemes With More Than 8% Interest

Want More Returns Than FD: Here Are Indian Post Schemes With More Than 8% Interest

The post office offers some of the best schemes, offering more than fixed deposits; the returns are comparable to those of bonds and similar instruments.

G R MukeshUpdated: Monday, June 17, 2024, 10:55 AM IST
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Fixed deposits are one of the safest investments out there, but the return on fixed deposits are not attractive as other saving instruments. The post office offers some of the best schemes, offering more than fixed deposits; the returns are comparable to those of bonds and similar instruments. here are some those schemes from post office.

i)National Savings Time Deposit Scheme

The National Savings Time Deposit Scheme offers more interest for longer maturity tenure. In the scheme for 1-year deposits, a 6.9 per cent per annum interest rate is offered to depositors. Subsequently, for maturities of 2 years and 3 years, the interest rate stands at 7.0 percent and 7.1 per cent per annum respectively. The fourth category in this scheme is 5 years, which has highest interrest rate of 7.5 percent per annum.

Top Features

1) A minimum deposit of Rs 1000, with subsequent deposits made in multiples of Rs100.

2) Income Tax Act deductions are available for deposits made into 5-year-time deposits.

ii) National Savings Recurring Deposit Account (RD)

A prominent savings program provided by the Indian government through post offices is the National Savings Recurring Deposit Account (RD). For a predetermined amount of time (usually five years), you can invest a set amount of money each month.

This kind of saving provides compound interest every three months and guaranteed returns with a respectable maturity amount.

Notable Features

1) The interest rate for this scheme stands at 6.7 per cent, annually. compounded every 3 months.

2) compound interest on your investment, accelerating the growth of your funds.

iii)The National Saving Certificate

A minimum initial deposit of Rs. 1000 is required for the National Savings Certificate, and additional investments in multiples of Rs. 100 are permitted.

The maximum amount that can be deposited is not limited. The Income Tax Act allows for tax deductions on these deposits. The deposit has a five-year maturity period starting on the date of investment.

The National Savings Certificate has an annual compound interest rate of 7.7 per cent at the moment. Nevertheless, the interest earned is only due when the account matures.

Key Takaways

1) 5 years and 10 years of lock-in

2) No Tax Collected at Source

3) Income Tax Deductions

iv)Sukanya Samriddhi Yojana (SSY)

2015 saw the introduction of the Sukanya Samriddhi Account (SSA), a small savings program by the Indian government.

Parents are encouraged to save for their daughter's education and marriage through this tax-saving plan. This scheme offers an whopping 8.2 per cent interest on the deposites. with lock-in period of 21 years

Key benefits

1) Eligibility: Girls under the age of ten are eligible.

2) Minimum Annual Investment: Rs. 250

3) The annual maximum investment is Rs. 1.5 lakh.

4) Interest rate as of January 2024: 8.2 per cent annually

5) Deposits of any frequency are accepted.

6) After eighteen months, a 50 per cent corpus withdrawal is permitted for marriage or education.

7) Deposits, interest, and maturity amounts are all exempt from income tax.

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