Interest rates on NSC, post office term deposits, and the senior citizen savings scheme have been raised by the government for the period January-March 2023. Post office FDs now provide a return of 6.5-7 percent depending on tenure.
Interest Rates on Small Savings Schemes Revised for January-March 2023:
1-Year Post Office Time Deposits: 6.5 percent
2-Year Post Office Time Deposits: 6.8 percent
3-Year Post Office Time Deposits: 6.9 percent
5-Year Post Office Time Deposits: 7.0 percent
National Saving Certificates (NSC): 7.0 percent
Kisan Vikas Patra: 7.2 percent
Public Provident Fund: 7.1 percent
Sukanya Samriddhi Account: 7.6 percent
Senior Citizens Savings Scheme: 8.0 percent
Monthly Income Account: 7.1 percent
Given the increase in interest rates, these are good investment options for those looking to invest in safe and secure instruments with decent returns.
NSC and PO are two types of term deposits offered by the government of India through the Post Office.
A term deposit is a type of investment in which money is deposited into an account for a fixed period of time, during which it earns a fixed rate of interest.
NSC stands for National Savings Certificate, and it is a savings instrument offered by the Indian government through the Post Office.
NSCs have a maturity period of 5 or 10 years and can be purchased by individuals, joint holders, or by minors through a guardian.
Interest on NSCs is compounded half-yearly, and they are eligible for tax benefits under Section 80C of the Income Tax Act.
PO stands for Public Provident Fund, and it is a long-term savings instrument offered by the Indian government through the Post Office. POs have a maturity period of 15 years and can be opened by individuals.
Interest on POs is compounded annually, and they are eligible for tax benefits under Section 80C of the Income Tax Act.
Both NSCs and POs are considered safe investment options as they are backed by the government of India and offer a fixed rate of interest.
However, they may not offer as high a rate of return as other investment options such as stocks or mutual funds.
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