Post Office interest prices September 2021 quarter: The government has kept the post workplace tiny savings schemes interest prices unchanged for the July-August-September 2021 quarter. The tiny savings interest prices stay the exact same as that in April to June 2021 quarter. In a falling interest price situation, no modify in the post workplace tiny savings schemes’ interest price is going to be very good news for the fixed-earnings investors.
At the commence of each quarter of the monetary year, the government sets the interest prices on post workplace schemes for the next 3 months. The reset in tiny savings interest price is based on the yield of the government securities.
However, even if there is a modify, the new prices do not apply to all investors of all post workplace schemes. For NSC, KVP, Time deposits, Senior Citizens Savings Scheme (SCSS), the price of interest remains fixed for investors till maturity. PPF and Sukanya Samriddhi Yojana (SSY) are the two prominent tiny savings schemes that witness a revision in the price as and when the government revises them.
National Savings Certificates (NSC), KVP, Time-deposits, Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY) and so forth., will continue to present the exact same price as that of the preceding quarter of April -May-June 2021.
The status quo in PO savings schemes interest price could continue to hold them appealing compared to bank fixed deposits. Currently, most top banks are providing interest prices of about 5.5 per cent more than 1 to 10-year deposits.
The interest price on PPF remains at 7.1 per cent per annum though for the Senior Citizen Savings Scheme, the interest price is 7.4 per cent per annum.
The 5-year Monthly Income Account Scheme is providing 6.6 per cent payable month-to-month.
On the 1-year time deposit, the price of interest stands at 5.5 per cent though on the 5-year deposit, the price is 6.7 per cent per annum.
Public Provident Fund (PPF) continues to be a favourite with quite a few investors. Few things that make PPF a well known selection amongst lengthy time investors are –
Firstly, the interest earned in PPF is tax-absolutely free beneath Section 10 and does not add to one’s tax liability, and
Secondly, the interest gets the advantage of annual compounding in PPF.
Thirdly, the investment made and the earned enjoys the sovereign assure.
Several other post workplace schemes are also the initial selection of investors hunting for fixed and assured earnings. Some of them also come with tax rewards beneath Section 80C of the I-T Act. All of them are sovereign backed investments wherein the principal invested and the interest earned are assured by the government.
- Sukanya Samriddhi Yojana (SSY) is an investment that earmarks funds exclusively for the requires of the girl youngster and can be opened in the name of a girl youngster under 10 years.
- NSC is yet another tax saver that demands only a lump sum payment and there is no want to spend additional contributions. On maturity, a fixed quantity is received which is recognized appropriate at the time of investment.
- The time deposit (TD) in a post workplace is somewhat related to a bank fixed deposit. While the time deposits in a post workplace are for 1, 2 , 3 and 5 years, it is only the 5-year TD that comes with section 80C tax advantage.
- Senior Citizen Savings Scheme (SCSS) is a well known investment solution with these who are 60 years and above.
Considering the existing price of interest on bank fixed deposits, the post workplace plans may possibly seem to be more attractive. Before investing, make sure about the tax liability of the interest that you will earn on PO schemes as some of them may possibly have a taxable interest. Also, as the majority of them have a lengthy duration, guarantee you have liquid assets readily available to you prior to locking funds for the lengthy haul. Significantly, the post workplace schemes carry a sovereign assurance on the complete sum contributed and therefore carry the highest security on the complete principal invested.