Post office savings schemes are the favourite of low-income and risk-free investors, though there is no such rule that low-income generators can only invest. This highly stable savings scheme serves both as a healthy investment to secure your future wealth and offers income tax benefits under Section 80C. So, here are all the schemes that offer such lucrativeness- Public provident fund or PPF, 5-year post office deposit scheme, National Savings Certificate or NSC, Sukanya Samriddhi Yojana or SSY, and Senior Citizen Savings Scheme or SCSS.
List of Post Office Savings Scheme Offering Income Tax Benefits
Public provident fund (PPF)
Presently Public Provident Fund offers an interest rate of 7.1 per cent, after the latest revision. Along with a EEE (exempt, exempt, and exempt) status, it has a maturity period of 15 years. The minimum amount to contribute to the PPF account is ₹500 and the maximum amount is ₹1.5 lakh, in a financial year. Investment up to ₹1.5 lack in this scheme offers income tax deduction under Section 80C.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana (SSY) is a dedicated small savings scheme for parents to invest in the future of their Girl child. The interest rate offered on this scheme is 7.6 per cent while being granted an EEE status from the Government.
5-Year Post Office Time Deposit Scheme
Similar to the FD scheme with a 5-year maturity period, the 5-Year Post Office Time Deposit Scheme also offers tax deductions under section 80C till ₹1.5 lakh deposit in a financial year. With no upper limit, this investment scheme has a minimum investment amount of ₹1,000.
National Savings Certificate (NSC)
NSC offers an interest rate of 7 per cent. There is no maximum limit to invest in NSC, but ₹100 is the minimum amount to invest.
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Senior Citizen Savings Scheme (SCSS)
A senior citizen of 60 years can open a Senior Citizen Savings Scheme (SCSS) account. Presently, SCSS offers an interest rate of 8 per cent. With a maturity period of 5 years, this Scheme qualifies for Section 80C tax benefits up to ₹1.5 lahk.
