Post Office Investment Plan: If you are thinking of doing any new planning for savings, then the special savings scheme of the post office can be beneficial for you. There is also a good income every month through these schemes. These schemes include National Savings Certificates (NSC), Post Office Time Deposit (POTD), and Kisan Vikas Patra (KVP). Let us know all such information about these schemes which are very important for investment.
National Savings Certificates (NSC)
Investment in National Savings Certificate (NSC) earns an interest of 6.8 percent every year. Also, interest is calculated on an annual basis. At the same time, the interest amount is given only after the completion of the investment period. At least one thousand rupees can be invested in this scheme. There is no maximum limit for investment in the scheme. The total investment period under the NSC scheme of the post office is 5 years. According to India Post, the account under this scheme can be opened with a minimum of Rs 100.
Post Office Term Deposit (POTD) how to invest in
Like a bank, you can also do FD in the post office. This scheme is available in the post office in the name of a term deposit, in which one can deposit money for 1 year, 2 years, 3 years, and 5 years. The advantage is that here the interest rate on FD is higher than that of the bank.
Under Post Office Time Deposit, 6.7 percent annual interest is being given on deposits of 5 years. The benefit of tax exemption under section 80C is available on a time deposit of five years. Post office fixed deposit accounts can also be easily opened by a person through cash or cheque.
What is Kisan Vikas Patra (KVP)
If you want to double your investment amount, then KVP is the best option. As far as the interest rates of other small savings schemes are concerned, the government reviews them every quarter. When the money invested in this way will double depending on the interest rates.
The interest rate for KVP in the first quarter of FY 2021 has been fixed at 6.9 percent. Here your investment will double in 124 months. If you invest Rs 1 lakh in a lump sum then you will get Rs 2 lakh on maturity. 124 months is the maturity period of this scheme. This scheme does not come under the Income Tax Act 80C. Therefore, whatever return comes, it will be taxed. However, TDS is not deducted in this scheme.