The three major Post Office Savings Schemes are discussed here in details.
As a result of Reserve Bank's policy changes, interest rates in the investment market have increased. Where is the place of Small Savings Scheme in this situation? The three major Post Office Savings Schemes are discussed here separately.
# National Savings Certificate
# Senior Citizens Savings Scheme
# Sukanya Samriddhi Account
Senior Citizens Savings Scheme
Although the name is mentioned at the end of the list, we want to specifically discuss the most important project on the list. In today's uncertain market, the lack of protection and security of the senior citizen is quite evident. There has been a surge in investing in equities and other market-oriented schemes lately, but many seniors aren't particularly excited. Instead, he avoided it - let me tell you the reason. Uncertainty and volatility of returns. The fact that they want to stay within the bounds of getting a fixed rate of interest, does not have to be explained anew. They rely on this government-recognised, senior citizen benefit scheme.
Let's have a look at the features of this scheme which is very popular among senior citizens.
# Interest rate: 7.6 percent, effective October 1.
# Interest is paid quarterly. 31 March, 30 September, 31 December and 30 June.
# Minimum investment: One thousand rupees. Maximum investment: 15 lakh rupees
# Tax Benefit : Under Section 80C.
Other important conditions: Premature closing is possible. However, no interest will be earned if the account is opened within one year of opening. As per the condition of maturity of five years, one can close by submitting the pass book to the post office. 'Extension' can also be done, for which a separate application has to be made. The term may be extended for three years.
It should be remembered that the interest you will get if you invest in the project is taxable. But the total interest in that case should be more than 50,000 rupees in a financial year. In this context the investor should know the TDS (Tax Deducted at Source) rules.
SCSS can be opened by anyone in own name (must be at least 60 years) or jointly with spouse. Many senior citizens in the country manage their families by holding SCSS in a fluctuating interest rate market.
National Savings Certificate (NSC)
The National Savings Certificate has no distinguishing features – although it may seem a bit lame compared to SCSS or SSA, its role in saving is very positive. No equivalent of NSC is available for a period of five years (comparison with previous deposits is not drawn). Its main features:
# Interest Rate : 6.8 percent (available at maturity)
# As a calculation, if you invest 1000 rupees today, you will get 1389 rupees at the end of the term. In this case, no maximum investment limit has been fixed.
# Can open single or joint account. Three adult citizens can invest here together. But in case of minor child there should be Garzen.
# Any number of accounts can be opened in this scheme. The benefit of Section 80C for the sake of deposit will also be availed here. Maturity in five years, but the account will be closed on the death of the single account holder. Transfer of NSCs will not be possible unless certain conditions are met.
Although there are some strict rules, it must be remembered that many people express their willingness to borrow with NSC-bonds. Yes, it is possible to do so, and there are specific application forms for that. That arrangement can be done at the concerned post office. Customer can go to any bank and deposit the NSC documents to pledge. Pledges are also sometimes necessary for housing finance companies.
Sukanya Samriddhi Account
This scheme specially designed for the younger girls of the house is quite popular. There is a reason for that. Interest rates are fairly good, so many parents today thinkabout the future of their daughter and trust in Sukanya Samriddhi. The key features are briefly listed
# Interest rate: 7.6 percent (effective from April last year).
# Minimum : Can start with Rs.250.
# Maximum : Tk 1,50,00 per financial year.
# Can be deposited as lumpsum, or in installments.
# Parents of a girl child can open this account, but the age of the girl child should be less than 10 years.
# There will be only one account in the name of a girl, no matter where she is in the country.
# Here too you will get the benefit of Section 80C as a non-tax payer.
Keep in mind that you can deposit money in Sukonya Samriddhi for up to 15 years after opening the account. Interest will be credited once a year, at the end of the financial year. But this interest is tax-free. In case of any girl child, the respective account can be operated by the parent till the girl reaches the age of 18 years. Upon reaching adulthood, or passing tenth grade, withdrawal is possible.
Investors should carefully understand the other conditions related to this withdrawal. Also, the conditions regarding premature closing are also important to know.
Two essential conditions for maturity are:
#One, 21 years of account opening
#2, After the daughter gets married/come of age.
Disclaimer : Discuss with expert before investment.
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