Category: Personal Finance

Senior Citizen Savings Scheme (SCSS)

Senior citizens with the age of 60 or more are allowed to invest in this scheme in order to get regular interest income. This scheme comes with a lock-in period of 5 years and premature withdrawal is allowed with penalty only after the completion of one year. The maximum that can be deposited by any investor in this scheme is currently fixed at Rs 15 lakh. You can open the account independently or jointly with your spouse for which you will get an interest rate of 7.4% along with tax benefits under section 80C.

Where To Invest Other Than Small Savings Schemes To Reap Good Returns?

Sukanya Samriddhi Account

This scheme provided exempt-exempt-exempt (EEE) tax status to the investors and falls under the ‘Beti Bachao Beti Padhao’ initiative. This implies that the amount of investment, interest gained and the amount of maturity are exempted from tax. Only one account per girl child and a limit of two accounts on behalf of two separate girls can be opened by parents or legal guardians. After 21 years of span the maturity balance is payable. If the minimum amount required is not invested in a single financial year, a penalty will be imposed to the investor.

Public Provident Fund

Another popular investment approach that achieves the tax status as exempt-exempt-exempt is PPF. Since it comes with a 15-year lock-in term, partial withdrawal from the seventh year onwards is permitted. The scheme comes with a tenure of 15 years and the account can be extended in the blocks of 5 years. One can invest in this small savings scheme up to a limit of Rs 1.5 lakh for which he or she will get an interest of 7.1 percent per annum and also reap loan facility against his or her account.

5 Year NSC VIII Issue

National Savings Certificates (NSC) can be purchased individually, jointly or on behalf of a minor. This scheme comes with a tenure of 5 years and also counts for tax deduction under section 80C. One can invest in this scheme up to a limit of Rs 1.5 lakh against which the interest is not paid but rather re-invested. Except for the 5th year, the re-invested interest is also liable for a deduction under section 80C.

Post Office Time Deposit

Time deposits similar to a bank FD are also authorized by the post office. For any of the four tenures, 1, 2, 3, and 5 years, a Term Deposit (TD) can be opened by an eligible investor by depositing a minimum amount of Rs 1000 with no upper limit. In the scheme, even a minor over the age of 10 years can deposit. Under section 80C, a five-year period deposit also provides tax benefits.

Post Office Monthly Income Scheme

Individuals individually or jointly or minors aged 10 years or older can invest in the scheme for which they will get an interest rate of 6.6% per annum but payable monthly. The scheme comes with a tenure of 5 years with a minimum and maximum deposit of Rs 1000 and Rs 4.5 lakh in single account and Rs 9 lakh in joint account. After the completion of one year, the premature withdrawal facility can be made, but some penalty will be charged for the same.

Kisan Vikas Patra

You can opt this scheme if you want to double your investment within 10 years & 4​​​ months. You can invest in this small savings scheme with a minimum deposit amount of Rs 1000/- and in multiples of Rs. 100/- with no upper limit for which you will get an interest rate of 6.9%. The Account can be opened individually or jointly (up to 3 adults), on behalf of a minor or on behalf of a person of unsound mind. Under this scheme premature withdrawal facility is also available but only against certain conditions.

Post Office Recurring Deposit

One can open a 5-year RD account by depositing a minimum amount of Rs 100 with no upper limit. The account can be opened individually, jointly (up to 3 adults), on behalf of a minor, or on behalf of a person of unsound mind. The current interest rate in this small savings scheme is 5.8​ % per annum (compounded quarterly). Post office RD account can also be extended for a further 5 years, and against his or her account one can make premature withdrawal after 3 years from the date of account opening and can also avail a loan.

Post Office Savings Account

A post office savings account just like a savings account of a bank can be opened at any post office and interest is received on the balance of the savings account. You can only open an account with a minimum deposit of Rs 500 with no upper limit. Hence, the minimum balance of Rs 500 is to be maintained in order to take advantage of the cheque facility. The account can be opened individually, jointly, on behalf of a minor or on behalf of a person with an unsound mind. Under section 80TTA of the Income Tax Act, one can gain tax benefits for interest up to Rs. 10,000 received in a fiscal year.

Post Office Small Savings Schemes Interest Rates

Our take

To evaluate the instrument for investment, an individual should always be conscious of his/her risk appetite, savings, and potential objectives. An investor does not choose an investment randomly and then commit it to an objective. Instead, an investor can first select an aim and then pick a suitable investment for it.

GoodReturns.in

Senior Citizen Savings Scheme (SCSS)

Senior citizens with the age of 60 or more are allowed to invest in this scheme in order to get regular interest income. This scheme comes with a lock-in period of 5 years and premature withdrawal is allowed with penalty only after the completion of one year. The maximum that can be deposited by any investor in this scheme is currently fixed at Rs 15 lakh. You can open the account independently or jointly with your spouse for which you will get an interest rate of 7.4% along with tax benefits under section 80C.

Where To Invest Other Than Small Savings Schemes To Reap Good Returns?

Sukanya Samriddhi Account

This scheme provided exempt-exempt-exempt (EEE) tax status to the investors and falls under the ‘Beti Bachao Beti Padhao’ initiative. This implies that the amount of investment, interest gained and the amount of maturity are exempted from tax. Only one account per girl child and a limit of two accounts on behalf of two separate girls can be opened by parents or legal guardians. After 21 years of span the maturity balance is payable. If the minimum amount required is not invested in a single financial year, a penalty will be imposed to the investor.

Public Provident Fund

Another popular investment approach that achieves the tax status as exempt-exempt-exempt is PPF. Since it comes with a 15-year lock-in term, partial withdrawal from the seventh year onwards is permitted. The scheme comes with a tenure of 15 years and the account can be extended in the blocks of 5 years. One can invest in this small savings scheme up to a limit of Rs 1.5 lakh for which he or she will get an interest of 7.1 percent per annum and also reap loan facility against his or her account.

5 Year NSC VIII Issue

National Savings Certificates (NSC) can be purchased individually, jointly or on behalf of a minor. This scheme comes with a tenure of 5 years and also counts for tax deduction under section 80C. One can invest in this scheme up to a limit of Rs 1.5 lakh against which the interest is not paid but rather re-invested. Except for the 5th year, the re-invested interest is also liable for a deduction under section 80C.

Post Office Time Deposit

Time deposits similar to a bank FD are also authorized by the post office. For any of the four tenures, 1, 2, 3, and 5 years, a Term Deposit (TD) can be opened by an eligible investor by depositing a minimum amount of Rs 1000 with no upper limit. In the scheme, even a minor over the age of 10 years can deposit. Under section 80C, a five-year period deposit also provides tax benefits.

Post Office Monthly Income Scheme

Individuals individually or jointly or minors aged 10 years or older can invest in the scheme for which they will get an interest rate of 6.6% per annum but payable monthly. The scheme comes with a tenure of 5 years with a minimum and maximum deposit of Rs 1000 and Rs 4.5 lakh in single account and Rs 9 lakh in joint account. After the completion of one year, the premature withdrawal facility can be made, but some penalty will be charged for the same.

Kisan Vikas Patra

You can opt this scheme if you want to double your investment within 10 years & 4​​​ months. You can invest in this small savings scheme with a minimum deposit amount of Rs 1000/- and in multiples of Rs. 100/- with no upper limit for which you will get an interest rate of 6.9%. The Account can be opened individually or jointly (up to 3 adults), on behalf of a minor or on behalf of a person of unsound mind. Under this scheme premature withdrawal facility is also available but only against certain conditions.

Post Office Recurring Deposit

One can open a 5-year RD account by depositing a minimum amount of Rs 100 with no upper limit. The account can be opened individually, jointly (up to 3 adults), on behalf of a minor, or on behalf of a person of unsound mind. The current interest rate in this small savings scheme is 5.8​ % per annum (compounded quarterly). Post office RD account can also be extended for a further 5 years, and against his or her account one can make premature withdrawal after 3 years from the date of account opening and can also avail a loan.

Post Office Savings Account

A post office savings account just like a savings account of a bank can be opened at any post office and interest is received on the balance of the savings account. You can only open an account with a minimum deposit of Rs 500 with no upper limit. Hence, the minimum balance of Rs 500 is to be maintained in order to take advantage of the cheque facility. The account can be opened individually, jointly, on behalf of a minor or on behalf of a person with an unsound mind. Under section 80TTA of the Income Tax Act, one can gain tax benefits for interest up to Rs. 10,000 received in a fiscal year.

Post Office Small Savings Schemes Interest Rates

Our take

To evaluate the instrument for investment, an individual should always be conscious of his/her risk appetite, savings, and potential objectives. An investor does not choose an investment randomly and then commit it to an objective. Instead, an investor can first select an aim and then pick a suitable investment for it.

GoodReturns.in

On bitcoin’s likely acceptance as a mainstream payment solution and its potential seen to as capable of producing inflation-beating return, the world’s largest digital currency has scaled levels of $34000.

In December month only the bitcoin gained over 50 percent and it gained 7.8 percent to hit levels of $34000 before inching lower to $33970 mark. The controversy around this novel asset is still being there and after retreating by a huge 25% amid Covid 19 chaos in March 2020, it again drew momentum from bitcoin enthusiasts.