Fixed deposit, recurring deposit and 15-year PPF are some of the small savings schemesInvestment or deposit in any of the small savings schemes fetches a return to the tune of 4-8.7 per cent for the current quarter.India Post, which operates a network of more than 1.5 lakh post offices across the country, offers nine options under its small savings scheme portfolio.
These include fixed depositor time deposit(available in four optionsof maturities), recurring deposit, Public Provident Fund (PPF), Senior Citizen Savings Scheme, National Savings Certificate and Kisan Vikas Patra (KVP).
Of these, the highest interest rate of 8.7 per cent per annum is applicable to the Senior Citizen Savings Scheme, according to India Post's website - indiapost.gov.in.Small savings schemeInterest rateMinimum amount required for opening accountMaximum investment allowedSavings account4%Rs 20Five-year recurring deposit account7.30%Rs 10 per monthNo limitOne-year time deposit (fixed deposit) account7%Rs 200No limitTwo-year time deposit (fixed deposit) account7%Rs 200No limitThree-year time deposit (fixed deposit) account7%Rs 200No limitFive-year time deposit (fixed deposit) account7.80%Rs 200Monthly income scheme7.30%Rs 1,500Rs 4.5 lakhSenior citizen savings scheme (SCSS)8.70%Rs 1,000Rs 15 lakh15-year public provident fund8%Rs 500Rs 1.5 lakh per financial yearNational savings certificate (NSC)8%Rs 100No limitKisan Vikas Patra (KVP)7.70%Rs 1,000No limitSukanya Samriddhi8.50%Rs 1,000Rs 1.5 lakh per financial year(Source: indiapost.gov.in)Interest rates on the nine small savings schemes (including four types of time deposit or fixed deposit) are currently revised every quarter.
The current rates are applicable for the quarter ending on March 31, 2019.Income tax benefitsOut of these small savings schemes, investment in the five-year term deposit (fixed deposit), Senior Citizen Savings Scheme (SCSS),15 year Public Provident Fund andNational Savings Certificates (NSC) qualifies for income tax benefit under Section 80C of the Income Tax Act.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
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