Recently several banks including Canara and HDFC have cut interest on fixed deposits. In such a situation, if you want to invest in a place where you get more interest and your money is safe, then you can invest in PPF, Kisan Vikas Patra and National Saving Certificate Scheme of the post office. You can also take advantage of tax exemption under Section 80C by investing in them. We are telling you about these schemes.
Public Provident Fund (PPF)
- This scheme can be opened anywhere in the bank or post office. Apart from this, it can also be transferred to any bank or any post office.
- If it is opened, then it can only go from 100 rupees, but then later it is necessary to deposit 500 rupees at a time. Maximum 1.5 lakh rupees can be deposited in this account every year.
- This scheme is for 15 years, from which no money can be withdrawn. But it can be extended for 5–5 years after 15 years.
- It cannot be closed before 15 years, but after 3 years, a loan can be taken against this account. If anyone wants, he can withdraw money from this account from 7th year under rules.
- The government reviews the interest rates every three months. These interest rates can be more or less. At present, this account is getting 7.1% interest.
- Tax exemption of up to Rs 1.5 lakh can be availed under 80C through investment in these schemes.
- Any person can invest in them. Click here for more information related to this scheme
In what time will the money be double?
If you put money in the Kisan Vikas Patra, according to the Rule of 72, the annual interest rate of 7.1% will double in about 10 years and 1 month.
Kisan Vikas Patra (KVP)
- Kisan Vikas Patra (KVP) savings scheme currently offers 6.9% interest.
- There is no maximum limit to invest in KVP. However, your minimum investment should be Rs 1000.
- The investor’s age must be at least 18 years. It has the facility of a joint account in addition to a single account.
- Minors may also be included in the scheme, but it will have to be handled by their parents.
- If you want to withdraw your investment, you will have to wait for at least 2.5 years. It has a lock in period of two and a half years.
- Under this, the amount deposited is exempted under Section 80C of the Income Tax Act. Click here for more information related to this scheme
In what time will the money be double?
If you put money in the Kisan Vikas Patra, according to the Rule of 72, the interest rate of 6.9% will double in about 10 years and 4 months.
Post Office National Saving Certificate
- The investment in the Post Office National Saving Certificate (NSC) is getting 6.8% interest annually.
- In this, interest is calculated on an annual basis, but the amount of interest is given only after the period of investment.
- The amount deposited in the National Saving Certificate gets tax exemption under Section 80C of the Income Tax Act.
- To open an NSC account, you have to invest a minimum of Rs 100.
- A joint account can also be opened in the name of a minor and in the name of 3 adults.
- An account can also be opened under the supervision of a guardian in the name of a minor over 10 years of age.
- You can invest any amount in NSC. There is no maximum investment limit. Click here for more information related to this scheme
In what time will the money double?
If you put money in the National Savings Certificate, according to the Rule of 72, according to the annual interest rate of 6.8%, the money will double in about 10 years and 6 months.
What is the rule of 72?
This special rule of finance is Rule of 72. Experts consider this to be the most accurate rule, which determines how long your investment will double. You can consider it as such that if you have selected a special scheme of the bank, where you get 8% interest annually. In this case, you have to divide 8 out of 72 under Rule of 72. 72/8 = 9 years, ie under this scheme your money will double in 9 years.
Note: This is a rough estimate as the interest on these schemes is reviewed every 3 months.