If you are one of those investors who is interested in long term investment and also has patience, you can invest in five year term post office schemes. These investments give you the benefit of better returns and tax breaks. In addition, the safety of your money is guaranteed.
5 year time deposit account
An investment plan in a post office called an FD is a post office time deposit account. At the post office, you can deposit time for 1, 2, 3 and 5 years. But the highest interest will be in time deposit for 5 years.
The scheme is currently offering an annual interest of 6.7 per cent. You can open this account for a minimum of Rs. You can invest as much as you want in multiples of 100. The benefit of income tax exemption is also available under this 5 year time deposit scheme.
5 year recurring deposit (RD)
The special scheme to invest for five years is Post Office Recurring Deposit (RD). According to the India Post website, the post office recurring deposit scheme is currently earning 5.8 per cent interest. This new rate will be applicable from 1st April 2020. In this RD scheme, you get at least Rs. You can open an account with 100. You can deposit any amount in multiples of 10. There is no limit on the maximum deposit amount.
5 year National Savings Certificate Scheme
The National Savings Certificate (NSC) 8th issue has a lock-in period of at least five years. That is, you will be able to withdraw it only after five years of investment. Investing in NSC is quite safe. There are three ways to invest in NSC. Currently, the interest rate on this scheme is 6.8%. You can invest a minimum of Rs. 1,000 and you can invest money in multiples of 100. There is no limit on the amount of investment.