If you want more interest than FD, invest in Post Office PPF or National Savings Certificate Scheme

 If you want more interest than FD, invest in Post Office PPF or National Savings Certificate Scheme

 If you want more interest than FD, invest in Post Office PPF or National Savings Certificate Scheme

In many post office schemes, you are getting higher interest than fixed deposit (FD). The scheme also includes Public Provident Fund (PPF) and National Savings Certificate (NSC). In it you can save tax on investment up to Rs 1.5 lakh under section 80C. SBI, the country's largest bank, is offering a maximum interest rate of 5.4% on fixed deposits. Today we are telling you about both these schemes. You will get more interest than FD and the money will be safe.

PPF is earning 7.1% interest

    The Public Provident Fund (PPF) can be opened with only Rs 100, but the latter requires a deposit of Rs 500 once a year. A maximum of Rs 1.5 lakh can be invested in this account every year.

    This scheme is for 15 years. From which money cannot be withdrawn in the meantime. But after 15 years the plan can be extended for 5-5 years.

    It cannot be closed before 15 years. But after 3 years the loan can be taken against this account.

    The government reviews interest rates every three months. This interest rate can be more or less. This account is currently earning 7.1% interest.

    By investing in this scheme Rs. Tax exemption up to Rs 1.5 lakh can be obtained under 80C.

    PPF falls under the EEE category of income tax. This means that returns, maturity amounts and interest income are tax deductible.

NSC is getting 6.8% interest

    Post Office National Savings Certificate (NSC) is earning 6.8% annual interest

    The interest is calculated on an annual basis, but the amount of interest is paid on the investment period.

    You have to invest a minimum of Rs.1000 to open an NSC account.

    This account can also be opened in the name of an adult and a joint account in the name of 3 adults.

    An account can be opened in the name of a minor above 10 years of age under the supervision of a guardian.

    Its maturity period is 5 years. You cannot exit this scheme before.

    You can avail tax exemption up to Rs 1.5 lakh under 80C by investing in this scheme.

    You can invest any amount in NSC. There is no maximum investment limit.

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Where is the right investment?

Investment in both places will be perfectly safe. In terms of interest, PPF is earning more interest than the National Savings Certificate Scheme. But it has a lock-in period of 15 years. Lock-in in NSC lasts for 5 years. PPF falls under the EEE category of income tax. This means that returns, maturity amounts, and income from interest are tax deductible. Also, tax can be saved only on investment in NSC. You can invest in both of these schemes at your own pace.