Still why did the government not increase the rates?

The reason for this is related to the decision taken at the beginning of the Corona period. When the lockdown was imposed in March 2020, the Reserve Bank of India (RBI) had cut the repo rate by 75 basis points to reduce the financial burden on the people. That is, the repo rate was reduced to 4.40%. After this, banks also reduced interest rates on FD and savings.

But at that time the government did not reduce the interest rate of small savings schemes. Especially to ensure that the elderly get regular income, returns were maintained in these schemes. Now when RBI has again increased the repo rate and banks are also paying more interest, even then the government has kept the rates of small savings schemes unchanged.

Experts believe that the government is keeping its interest expenditure under control. Because if the government also increases the interest rates of small savings schemes, then it will have to pay more interest on them. This will increase the burden on the government treasury. Therefore, at present, the government is trying to maintain balance by not increasing the rates. When banks were paying less interest on FDs, then more was being given on small savings schemes. Now that the bank rates have increased, these schemes have been kept stable.

Finance Ministry officials say that further changes will depend on the inflation and liquidity in the market. If inflation increases rapidly or there is less money in the system, then the government may consider increasing interest rates.

At present, this much interest is being received on these schemes

The government had kept the interest rates stable for the quarter of July-September 2022. Currently the interest rates on some major schemes are as follows.

1. Public Provident Fund (PPF) – 7.1%
2. National Savings Certificate (NSC) – 6.8%
3. Sukanya Samriddhi Yojana – 7.6%
4. Senior Citizen Savings Scheme (5 years) – 7.4%
5. Post Office Monthly Income Scheme – 6.6%
6. Kisan Vikas Patra – 6.9%

Even though the interest rates are somewhat low, these schemes are still considered the first choice of the middle class and pensioners due to government guarantee and stable returns.

The post PPF, Sukanya, NSC: Government Issues Fresh Interest Rate Update first appeared on Rightsofemployees.com.

We all want to save money and create a big fund, but often we don’t understand where to start. The risk of the stock market scares us and we don’t have a large amount to invest at once. If you have the same problem, then a great scheme of the post office is for you. This scheme is like a “piggy bank” in which you have to invest a fixed amount every month, but you also get a good interest on it.

We are talking about Post Office Recurring Deposit (Post Office RD). This is a risk-free investment option in which you can save a small amount every day and save a large amount. Let’s know how you can create a fund of more than ₹ 2 lakh by investing just ₹ 3,000 per month.

What is Post Office RD Scheme?

Post Office Recurring Deposit (RD) is a small savings scheme backed by the Government of India, meaning your money is 100% safe. In this, you have to deposit a fixed amount every month for 5 years. It is great for those who cannot invest a lump sum but want to get into the habit of making small savings every month. It keeps your savings disciplined and also gives a fixed interest on it.

By saving ₹100 every day you can save ₹2,14,097, understand how

Your daily savings: ₹100

Your monthly savings (investment): ₹100 x 30 days = ₹3,000 per month

Investment period: 5 years (i.e. 60 months)

Total investment: ₹3,000 x 60 months = ₹1,80,000

Current interest rate: 6.7% p.a. (Interest is compounded quarterly)

Interest income: In 5 years, you will earn a total interest of ₹34,097

Total amount on maturity: ₹1,80,000 (your investment) + ₹34,097 (interest) = ₹2,14,097

Rules for withdrawing money before time

In case of emergency, you can close your RD before time. You can close it after completion of 3 years from the date of opening the account. But if you break the RD even a day before maturity, you will not get the 6.7% interest applicable on RD. Instead, you will be given interest according to the interest rate applicable on the post office savings account (which is currently 4%). So try to run it for the full 5 years.

What is the rule regarding extended account

If you do not need the money after 5 years, you can extend your RD for another 5 years. On extension, you will continue to get the same Post Office RD Interest Rate which was applicable at the time of opening the account. You can close the extended account anytime. You will get RD interest on the number of complete years and Post Office savings account interest (4%) on the remaining months. That means if you close it after three and a half years, you will get 6.7% interest for 3 full years, while for the remaining six months you will get 4% interest.

Frequently Asked Questions (FAQs)

1. What is the minimum amount one can start investing in Post Office RD?

You can open an RD account in the post office with just ₹ 100 per month. There is no maximum limit of investment in this.

2. Is there tax on interest earned on RD?

Yes, the interest earned from RD is added to your annual income and is taxed as per your tax slab.

3. What if you forget to deposit the RD installment in any month?

If you do not deposit the installment on time, you will have to pay a penalty of ₹ 1 per ₹ 100. If you do not deposit 4 installments in a row, your account may be closed.

4. Who can open a Post Office RD account?

Answer: Any Indian citizen can open this account. You can also open it in the name of your child (minor account) or two people together (joint account).

5. How to open RD account?

Answer: You can easily open an RD account by visiting any post office near you, filling a form and submitting KYC documents (Aadhaar and PAN card).

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The post Post Office’s superhit scheme – invest just ₹3,000 every month, get a return of ₹2.14 lakh first appeared on Rightsofemployees.com.

Today we are going to tell you about a very great scheme of the post office, where you can collect lakhs of rupees by investing just five thousand rupees. This is the Post Office Recurring Deposit Scheme. This scheme of the post office is quite popular in the country.

By investing in this scheme, you do not have to face the dangers of any kind of market risks. At present, you are getting an interest rate of 6.7 percent by investing in the Post Office Recurring Deposit Scheme. In this scheme, you will not have to face the dangers of any kind of market risks. In this episode, let us know about this scheme in detail –

You can easily open your account in the Recurring Deposit Scheme by visiting your nearest post office. You can start investing in this scheme from Rs 100. The maximum investment limit has not been fixed in this scheme.

Also Read: Ayushman Card Limit: How to find out the remaining limit of the Ayushman card, check here

In this scheme of the post office, you also get the facility of pre-mature closure. If you also want to invest five thousand rupees and collect funds worth lakhs, then for this, after opening an account in the RD scheme of the post office, you have to invest five thousand rupees every month.

You have to invest this amount of Rs 5000 per month for the entire five years. In this case, you will invest a total of Rs 3 lakh. If we calculate it on the basis of the current interest rate of 6.7 percent, then at the time of maturity, you will get a total of Rs 56,830 as interest.

After this, if you continue the investment for another five years, then the total amount deposited by you will be Rs 6 lakh. At the same time, you will get a total interest of Rs 2,54,272 on your investment. In this way, after ten years, you will have a total of Rs 8,54,272.

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The post Post Office’s great scheme, you can become a millionaire by investing just five thousand rupees first appeared on Rightsofemployees.com.

But there are many people who are investing their small savings in various types of schemes. The government is also giving you good returns in these schemes. If you are also thinking of a similar scheme, then we have brought a scheme for you in which you will get good and double profits by investing.

Get 7.5% interest

Let us tell you that Kisan Vikas Patra Yojana (KVP) is being run by the Post Office which is a better scheme for every citizen of the country. In this scheme, any Indian citizen can open his account and can open it through single or joint account.

In the Post Office Kisan Vikas Patra Scheme, an account is opened with a minimum of Rs 1000 and in this scheme you get interest at the rate of 7.5% on the amount deposited. Earlier in this scheme you were given interest at the rate of 7% but from July 1, 2023 its rate has been increased to 7.5%.

Money will double in 115 months

Let us tell you that people are liking the Kisan Vikas Patra Yojana (KVP) of the Post Office so much that the number of investors in it is continuously increasing. In fact, just as the number of investors is increasing, the tenure for doubling the invested amount is also decreasing.

Earlier the amount invested in this scheme used to double in 123 months and then in 120 months, but now it doubles in 115 months only. You are given compound interest on the amount invested in the Kisan Vikas Patra Scheme run by the Post Office.

In this scheme you can open single or double account. If you open a single account in Kisan Vikas Patra Yojana and have invested Rs 5 lakh, then at the interest rate of 7.5%, this amount becomes Rs 20 lakh in 9 years 7 months i.e. 115 months. The interest rate available on this scheme is reviewed every 3 months.

It is very easy to open an account in KVP

In this, any Indian citizen can open his account but the account of children below 10 years of age is opened in the name of their parents or guardian. After the child turns 10 years old, he becomes its owner himself.

The post Post Office Scheme: Invest only for so many days, money will double! Know- first appeared on Rightsofemployees.com.

Every small savings and regular investment habit creates a substantial fund for you in the long run. There are many investment options in today’s time. There is risk in investing in the market. Apart from this, there are many other options like government schemes, bonds, bank deposit schemes, in which there is no market risk.

If you also want to make your small savings big through regular investment without taking any risk, then Post Office Recurring Deposit Scheme (Post Office 5-Year Post Office Recurring Deposit Account) can prove to be helpful. Right now the government is paying 5.8 percent interest per annum on post office RD. One of its specialty is that there is no risk on deposits in the post office ie post office and your money remains completely safe.

PORD: How to make a guaranteed fund of 3.5 lakhs

According to RD Calculator, if you invest Rs 5,000 in Post Office Recurring Deposit (RD) every month, you will get Rs 3,48,480 on maturity after 5 years. Your investment in this will be Rs 3 lakh and you will get a guaranteed interest of Rs 48,480. You can start investing in Recurring Deposit (RD) from just Rs 100 in the post office. It has the facility that once you have opened an account with Rs.100, you can make further deposits in multiples of Rs.10 each. There is no maximum investment limit in this.

Any number of accounts a person can open in the Post Office Recurring Deposit Scheme. In this, apart from single, joint account can be opened for up to 3 persons. There is a facility to open an account in the name of the child as well. The maturity of post office RD account is 5 years. But, pre-mature closure can be done after 3 years. It also has the facility of nomination. At the same time, after maturity, RD account can be continued for further 5 years.

PORD: Loan will be available on need

Post Office RD is such a scheme, through which you can also take a loan on the basis of your deposit if needed. The rule of the post office says that after depositing 12 installments, a loan can be taken up to 50 percent of the amount deposited in the account. The loan can be repaid in lump sum or in installments. The interest rate of the loan will be 2% more than the interest on RD.

The post Post Office Powerful Plan: Good news! ₹ 5,000 monthly investment will get guaranteed ₹ 3.5 lakh in 5 years, know the specialty first appeared on Rightsofemployees.com.

Returns are guaranteed in this small savings. In this, you also get the benefit of tax exemption under section 80C of the Income Tax Act on investments up to Rs 1.5 lakh. Due to being a government scheme, your money here also increases according to the fixed interest, while remaining completely safe.

How much interest is getting on NSC

The interest rate on National Savings Certificate is 6.8 percent. Its maturity period is 5 years. The interest rates on NSC and other small savings are reviewed by the government every quarter.

NSC: How much will be earned from interest

The interest on NSC is compounded annually but the payment is made on the payment maturity of 5 years. If you invest Rs 5 lakh in this scheme, you will get Rs 6,94,746 on maturity at 6.8 percent interest. That is, you will get the benefit of interest of Rs 1,94,746.

For how much value can NSC buy

You can buy National Savings Certificate from any branch of the post office. You can buy this certificate in denominations of Rs 100, 500, 1000, 5000 and Rs 10,000. The minimum amount for investment should be Rs 100. While there is no limit on the maximum amount.

Benefits of NSC

An amount of up to Rs 1.50 invested in NSC gets the benefit of tax exemption under section 80C of the Income Tax Act. It is getting higher interest as compared to fixed deposit. This certificate can be used as collateral. Being a government scheme, returns are guaranteed on it.

The post Post Office Launch New Plan: Good News! On depositing 5 lakhs in this scheme, interest of Rs 194746 will be available, know details first appeared on Rightsofemployees.com.