NSC vs KVP vs Post Office: Big banks have started increasing the interest rates of fixed deposits i.e. FD and soon the trend of increasing rates in other banks may also start.
So investors planning to deposit their money in fixed income instruments can look at investment options like Post Office Time Deposit (POTD), National Saving Certificate (NSC) and Kisan Vikas Patra (KVP) for guaranteed returns. can consider.
National Saving Scheme
National Savings Scheme: If you are planning to invest in NSC then it is important for you to know that it has a lock-in period of 5 years. That is, it gets money only after 5 years. Investment can be made in single, joint or in the name of a minor. The current interest rate in this is 6.8 percent. One can start investing with as low as Rs 1000 and invest in multiples of 100, with no investment limit. NSC is also used as security for taking loan from the bank.
tax benefit
In this, NSC investment under section 80C provides tax exemption up to Rs 1.5 lakh per annum. It has a tenure of 5 years, so the interest earned on it every year is also reinvested, hence it gets tax exemption under section 80C.
Income Tax Updates| File Income Tax Return before the deadline otherwise TDS will be doubled
Kisan Vikas Patra (KVP)
Kisan Vikas Patra: You can start investing in the Kisan Vikas Patra scheme of the post office with Rs 1000. By investing in this scheme, your money will double in 124 months i.e. 10 years and 4 months. One can invest a minimum of Rs 1,000 in this and there is no upper limit. In this scheme of post office, 6.9 percent interest is being given annually.
tax benefit
No tax benefit is available on investment in KVP.
post office time deposit
Post Office time deposit: Post offices also accept time deposit which is very similar to bank FD. It can be for a period of 1, 2, 3 and 5 years. A minor i.e. a child above 10 years of age can also invest in it. At present, this scheme of Post Office Time Deposit Account is getting interest at the rate of 6.7% per annum. This is a tax saving scheme.
tax benefit
Tax exemption under section 80C can be availed on fixed deposits of more than 5 years. If your interest on FD account exceeds Rs 40,000 in a financial year, the post office can deduct TDS.
,