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Get more Interest with Post Office Schemes than Bank FDs, Know the details here

Sangeeta Soni
Sangeeta Soni
post office

Looking at this Corona scenario, Reserve Bank has reduced Interest rates to take the economy back on track.  Due to decreased interest rates, Fixed Deposit (FD) is no longer profitable for investors. In this condition, senior citizens who remain dependent on these interests for their income are mostly affected.

Presently, SBI savings account interest rate is 2.7 percent. Interest rates on 1-2 years FD is 5.1%. In this condition, it is difficult for Fixed Deposit investors to find any good option. The condition will remain same for some time. In such situations, Post Office’s small saving schemes can prove to be profitable on which investors are getting good interests.

Monthly income from MIS

From April 2020, Interest rates on Post Office Monthly Income Scheme (MIS) are reduced to 6.6%.  In monthly income scheme, Upper limit for single accounts is 4.5 lakhs and for Joint accounts is 9 lakhs. And maturity period is 5 years. This can be redeemed before one to three years’ duration. And in such condition, Investors have to lose 2% Interests.

National Savings Certificate

On the basis of this, Investors get interest at the rate of 6.8 percent. And there isn’t any upper limit of investment in this. And On deposit, there is tax exemption under income tax law section 40. From the date of enforcement to the date of maturity, this can be transferred only single time from one person to another.

Here also more interest rate than FD

Looking at these increasing interest rates, Kisan Vikas Patra (KVP) can also be seen as a good option. In this, interest rates start from 6.9%. And in this, also there isn’t any upper limit of investment. And this can be transferred from one person to another also. This can be redeemed after 2.5 years of enforcement.

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