The best post office savings schemes Offer tax-free guarantee returns in a certain period of time

The best post office savings schemes Offer tax-free guarantee returns in a certain period of time
The best post office savings schemes Offer tax-free guarantee returns in a certain period of time

Correos Investment Plan: If you are thinking of doing some new planning for savings, then the Correos special savings plan may be beneficial to 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 the information about these schemes which are very important for investment.

National Savings Certificates (NSC)

The investment in National Savings Certificate (NSC) generates an interest of 6.8 percent each year. Also, interest is calculated on an annual basis. At the same time, the amount of interest is given only after the completion of the investment period. At least thousand rupees can be invested in this scheme. There is no maximum investment limit in the scheme. The total investment period under the post office NSC scheme is 5 years. According to India Post, the account under this scheme can be opened with a minimum of Rs 100.

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Post Office Time Deposit (POTD) how to invest in

Just like a bank, you can also do FD at the post office. This scheme is available at the post office in the name of a time deposit, in which money can be deposited for 1 year, 2 years, 3 years and 5 years. The advantage is that here the interest rate of FD is higher than that of the bank.

Under the Post Office Time Deposit, 6.7 percent annual interest is paid on 5-year deposits. The benefit of tax exemption under section 80C is available on a five-year term deposit. Post office time deposit accounts can also be easily opened by one person via cash or check.

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What is Kisan Vikas Patra (KVP)?

If you want to double the amount of your investment, KVP is the best option. As for the interest rates of other small savings plans, the government reviews them every quarter. When money invested in this way it will double depending on interest rates.

The interest rate for KVP in the first quarter of fiscal year 2021 was set at 6.9 percent. Here your investment will double in 124 months. If you invest Rs 1 lakh in a lump sum, you will get Rs 2 lakh at maturity. 124 months is the expiration period of this scheme. This scheme is not under Income Tax Law 80C. Therefore, any income that comes will be taxed. However, TDS is not deduced in this scheme.

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