Post Office Small Saving Scheme: In the Post Office Small Savings Scheme, not only profit on money, but many benefits are available. Especially with regard to tax, there is more benefit. If someone wants to save tax with safe investment, then these post office schemes are a good option. Here information is being given about one such scheme, which is currently giving more returns than interest on Fixed Deposit. Along with this, the benefit of tax exemption is also available.
This savings scheme of Post Office Post Office is Time Deposit Scheme. It is also known as National Savings Time Deposit. The interest rate of this scheme is revised after every three months. Let us know the complete details about this scheme…
Post Office Time Deposit (POTD)
Post Office Time Deposit Interest Rate (Post Office TD Interest Rate) Fixed Deposit gives the same interest for some tenure, while some gives higher interest rate over the period. You can make term deposits in it. One can invest in it for one year, two years, three years and five years. An account can be opened in this scheme for a child of 10 years or more.
How much tax exemption will be available
Interest is given annually under this scheme. A minimum investment of Rs 1000 has to be made in this, while there will be no maximum limit. Annual interest will be credited to the savings account of the account holder. In this scheme, tax exemption of up to 1.5 lakh is given under Section 80C of Income Tax Act 1961 for 5 years TD.
Interest rate on POTD
India Post offers an interest rate of 5.5 per cent for a period of one year. For fixed deposits of two and three years, the interest rate is 5.7 per cent and 5.8 per cent respectively. India Post gives an interest of 6.7 percent over a period of 5 years.
Premature cancellation of Post Office Fixed Deposit Accounts can be done by submitting an application along with the passbook to the concerned Post Office. No deposit should be withdrawn before six months from the date of deposit. If a TD account is prematurely closed after six months but before one year, PO Savings Account interest rate will be applicable.
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Monthly Income Scheme: Invest money only once in this post office scheme, you will earn well every month