Post office savings schemes that offer income tax benefits
PPF, 5-year post office deposit scheme, National Savings Certificate (NSC), Sukanya Samriddhi Account Scheme and Senior Citizen Savings Scheme are some of the post office schemes that come with income tax benefits
As part of the quarterly revision in interest rates of small savings schemes, the interest rates for these schemes saw a sharp hike for the October to December quarter. For example, the interest rates for the public provident fund (PPF), 5-year post office deposit scheme, National Savings Certificate (NSC), Sukanya Samriddhi Account Scheme and Senior Citizen Savings Scheme have been hiked sharply by 40 basis points. Expecting a higher influx into small savings schemes after the latest interest rate hike, the government had last month announced a sharp reduction in the gross marketing borrowing estimate for 2018-19. Apart from attractive interest rates and a secure investment option for small investors, these schemes also provide income tax benefits.