National Term Savings Account
The interest rate on term deposits has recently been raised by the 3 largest PSBs, State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BOB). In this case, you must first know the interest rates of the National Term Savings Account or the FD de la Poste if you plan to open an FD with one of these OSPs or any other bank . The interest rate of this postal DF is always higher than that of various bank DFs.
FD interest rate
The National Savings Fixed Deposit Account offers interest rates of up to 6.7%. This is only one type of FD. You can receive fixed returns by investing in it for a fixed term. For terms ranging from 1 to 5 years, the fixed deposit account offers an interest rate of 5.5 to 6.7%. 1000 rupees is the minimum investment required. There is no investment limit.
|1 year. Air conditioner||5.50%|
|2 years. Air conditioner||5.50%|
|3 years. Air conditioner||5.5%|
|5 years. Air conditioner||6.7%|
Advantage of tax exemption under the 5-year investment regime
Currently, investing in this Post Office FD scheme for 5 years can help you save tax under Section 80C of the Income Tax Act 1961. Under this section, you are entitled income tax exemption up to Rs. 1.50 lakh. In addition, bank FDs are also eligible for tax exemption for a period of five years under the Tax Saver FD schemes.
Source – indiapost.gov.in