Higher interest rates than bank FDs on these saving schemes: If you are thinking of investing your money, and don’t want to take a risk, then apart from bank fixed deposits (FDs), you can even put your money in Post Office Saving Schemes. Apart from the lucrative interest rate, investing in these schemes offer a double bonanza of government security and tax deduction.
India Post provides several deposit options for investors, commonly known as post office saving schemes. Presently, the government provides 9 post office saving schemes. These nine small saving schemes include Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Post Office Time Deposit, and Senior Citizen Savings Scheme (SCSS). The government keeps revising the interest rates on a quarterly basis.
After the latest revision in April, some of these schemes are now giving higher interest rates than fixed deposits (FDs) offered by top lenders including the State Bank of India (SBI), ICICI, HDFC, Axis, Punjab National Bank (PNB), Bank of Baroda (BoB) among others.
More than 8% interest rate is available in these two schemes
Sukanya Samriddhi Yojana (SSY) and Senior Citizen Savings Scheme (SCSS) offer an interest rate of more than 8% on these deposits.
Sukanya Samriddhi Yojana
SSY is a government of India-backed small saving scheme that helps parents to save money for the long-term financial requirements of their girl child. In the SSY scheme, the Government of India is giving SSY interest rate of 8 per cent per annum.
Senior Citizen Savings Scheme
Any individual above the age of 60 can invest in this scheme, and earn a higher interest rate. Banks and post offices offer an interest rate of 8.2% on the Senior Citizens’ Savings Scheme (SCSS).
National Savings Certificate (NSC)
Currently, the NSC offers an interest rate of 7.7%. There is no upper limit for investment in the NSC and the minimum investment required is ₹100. Deposits of up to ₹ 1.50 lakh in the NSC in a financial year qualifies for tax deduction under Section 80C.
Source By: livemint
