INSUBCONTINENT EXCLUSIVE:
Four of the 9 saving schemes offered by India Post fetch interest rates of at least 8 per cent or more.India Post or Department of Posts,
which runs postal services in the country, also offers banking facilities
Besides allowing customers to open a savings account like banking peers, post offices also offer a number of saving schemes
Interest rates on these post office saving schemes move in line with the government's interest rates on small savings schemes, which are
revised on a quarterly basis
(PPF)The post office PPF account offers an interest rate of 8 per cent per annum, compounded on a yearly basis, according to the India
Post's official website- indiapost.gov.in
The post office PPF account matures in a period of 15 years
Thereafter, on application by the subscriber, it can be extended for one or more blocks of five years each
Deposits in the post office PPF account qualify for income tax deduction under Section 80C of the Income Tax Act, 1961
Section 80C of the Income Tax Act provides for income tax deductions up to Rs 1.5 lakh in a financial year.Post office National Savings
Certificates (NSCs)For the quarter ending March 31, post office NSCs fetches an interest rate of 8 per cent per annum
This interest is compounded on an annual basis but paid on maturity
National Savings Certificates (NSCs) have a lock-in period of five years
An NSC of Rs 100 will offer Rs 146.93 on maturity after five years
accountPost office Sukanya Samriddhi account fetches an interest rate of 8.5 per cent per annum
It is calculated and compounded on a yearly basis
Sukanya Samriddhi Accounts allow a minimum deposit of Rs 1,000 in a financial year
Sukanya Samriddhi deposits can be made in a lump sum
However, there is no limit on the number of deposits either in a month or in a financial year.Post office Senior Citizens Savings Scheme
(SCSS)Post office senior citizen savings scheme (SCSS) earns an interest rate of 8.7 per cent per annum, which is payable from the date of
deposit on March 31/September 30/December 31 in the first instance and thereafter, interest are payable on March 31, June 30, September 30
and December 31, according to India Post's website
Post office SCSS has a maturity period of 5 years, which can be extended for further three years within one year of the maturity by giving
application in prescribed format
Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961.
