Most of the investors consider Post Office Scheme as one of the best savings instruments due to its safety, security and financial stability. According to a latest circular issued by Department of Posts, Modi government has decided to keep the interest rates on post office schemes unchanged for the July-September quarter of FY 2020-21. This circular has been issued on dated July 1, 2020. Here is all you need to know about latest interest rate on Post Office Savings Account, Post Office 5-Year RD and Post Office Term Deposits:-
Post Office Term Deposits: For 1-3 years – interest rate of 5.5%. The 5-Year Post Office Term Deposit will give investors 6.7%.
Moreover, post office investments made under the 5-year fixed deposits are eligible for income tax benefits under Section 80C of the Income Tax Act, 1961.
Post Office Savings Account is like any other savings account with a bank, except for the face that it is with a post office. You can open only one post office account with one post office but an account can be transferred from one post office to another. Conveniently, you can also open an account in the name of a minor.
One of the best parts of post office savings account is that no TDS is deducted on the same.
Post Office investments come with a number of saving schemes benefits including high rate of interest as well as tax benefits. Also, it carries the sovereign guarantee of Indian Government. Post office tax benefit schemes are tax exempt under Section 80c, i.e. tax exemption up to Rs. 1,50,000 is allowed.