New Delhi: If you are unsure about investing in the stock market either directly or via mutual funds through systematic investment plans, and feel that bank fixed deposits do not offer enough returns, don’t worry. You still have an option to generate strong conservative returns through investment in government schemes. The Centre notifies the public about changes in the interest rates of Post Office Savings Schemes every quarter. While the interest rates for the April-June quarter remained unchanged, they still remain higher than the interest rates of many ank fixed deposits. Some of these schemes are also tax saving under Section 80C of the Income Tax Act. Let us explore 5 schemes that offer better returns than bank FDs.
Senior Citizen Savings Scheme
The Senior Citizens Saving Scheme (SCSS) offered by the Post Office is meant for senior citizens which allows for lump sum amount investment. Inder this scheme, eligible investors can also open personal and joint accounts. Tax benefits are an added feature of SCSS, apart from regular income. With an annual interest rate of 8.2 per cent, SCSS can be opened with a minimum investment of Rs 1,000. The investment limit in SCSS is capped at Rs 30 lakh.
Kisan Vikas Patra
This scheme allows you to double your investment at an annual interest rate of 7.5 per cent over a tenure of 115 months or 9 years and 7 months. You can start your Kisan Vikas Patra investment journey at any Post Office near you with an investment of just Rs 1,000. However, this scheme does not offer any tax benefits.
PO Monthly Income Scheme
The Post Office Monthly Income Scheme guarantees regular and stable income to the investor who can start with just Rs 1,500 and go up to Rs 9 lakh. Joint POMIS account holders can invest up to Rs 15 lakh in the scheme. The rate of interest offered is 7.4 per cent per annum. To be sure, interest earned from the scheme is taxable under the Income Tax Act.
National Savings Certificate
The National Saving Certificate (NSC) carries a 7.7 per cent rate of interest which can be opened with an investment of just Rs 1,000. Interest under NSC is credited only on maturity. Post OPffices allow there persons to open a joint NSC account. If the investor is a minor or person of unsound mind, their guardian may operate the account on their behalf. There is no cap on investments under NSC. Investors will also stand to benefit from Section 80C of the I-T Act.
Mahila Samman Savings Certificate
Designed especially for women, the Mahila Samman Savings Certificate (MSSC) offers a 7.5 per cent rate of return which is taxable under the I-T Act. The deadline for investment under this scheme is March 31, 2024. The scheme carries a 2-year tenure and can be opened with just Rs 1,000 with the upper limit capped at Rs 2 lakh.
Post Office Small Savings Schemes offer investors a variety of options with interest rates ranging from 4% to 8.2%. Most of these Small Savings Schemes also offer tax benefits under Section 80C of Income Tax. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
