Government of India small saving schemes are suitable for investors those who are not ready to bear risk with their savings. A few of them are suitable for tax saving investments also. There is a post office in all cities, towns and villages in India. So these schemes are available to all people in India including villagers. List of such small saving schemes with brief details are given below:-
Post office Savings Account: Post office Savings Accounts or POSA is same as savings account in banks. At present Post office savings account offer 4% interest (earlier it was 3.5%). There is no maximum limit for the deposit in POSA. Interest of this account is not taxable up to Rs. 3500 (7000 for joint account)
Post office recurring deposit: PORD is a 5 years recurring deposit with smallest monthly investment of Rs. 10 gives Rs. 738.62 on maturity. 8% interest per annum (old rate 7.5%). No maximum limit.
Post office time deposit: POTD is just like fixed deposit in banks and in post office it allows 4 types of time deposits according to the maturity date of deposit (1 year, 2 years, 3 years and 5 years). Tax exemption under section 80C which allows exemption of Rs. 100000 is applicable for post office time deposit.
(a) One year time deposit gives 7.7% interest (Old rate 6.25%)
(b) Two years time deposit offer interest of 7.8% per year (Old rate 6.5%)
(c) Three years time deposit offer 8% interest per year (Old rate 7.25%)
(d) Four years time deposit offer 8.3% interest per year (Old rate 7.5%)
5 year National Savings certificate: Now NSC (VIII issue) offer interest rate of 8.4% (Old rate 8.2%) for 5 years (Old 6 years). No maximum limit. Tax exemption under section 80C is available for NSC.
Senior citizen saving scheme: Interest 9% per annum, Tax exemption under section 80C up to Rs. 100000. Maximum investment is Rs. 1500000. Maturity is 5 years.
Public Provident Fund: PPF is for 15 years with interest rate is 8.6% per annum (old rate is 8%). Maximum deposit in a year is Rs. 100000 (Rs. 70000 earlier). Interest is not taxable and investment exempted under section 80C.
10 year National Saving Certificate: NSC (IX issue): Newly introduced scheme with 8.7% interest per annum. No maximum limit. Maturity is 10 years. Income tax exemption under section 80C is available.
All the above mentioned schemes are government of India’s small saving investment schemes and can invest through 155000 post offices all over India. PPF account and Senior citizen saving scheme can also be operated from selected branches of 25 major banks. Interest of all the schemes except PPF is taxable and no TDS will deduct at source. If you interested to invest any of the small saving schemes may contact nearest post office or bank or small saving agents.
Courtesy: Advertisement of National Savings Institute
Government of India small saving schemes
More benefits in NSC, PPF, small saving investments
Small savings help you to lead debt free life