Are you piling up books that you have always wanted to read at leisure or setting up a terrace garden or yearning for quality time with grandchildren in the days when you wouldn’t have to fit in the 9 am to 5 pm slot? It’s evident then that you have already started planning your post-retirement days. But what about your finances?
Retirement planning is all about securing the days that come when your regular income comes to an end and the fulfilment of your daily needs will be dependent on your savings. When it comes to savings, people generally turn to banks. However, when it comes to financial matters, Post Office savings schemes still have a strong standing and better yielding capability especially with regards to Fixed Deposits (FDs).
FDs are a secured form of investment that never gets influenced by market fluctuations, and interest rates are steady providing the depositor fixed returns. The Fixed deposit rates in post office are even better for senior citizens who are at the fag-end of their life, have a set lifestyle pattern and need a constant inflow of money.
But prior to opening an FD with the POs, it is essential that the senior citizens take into consideration certain factors to gain maximum benefit. Just check them out!
FD interest rates: Senior people must be highly concerned about the yields that FDs fetch.The fixed deposit interest rates in post offices are higher than the nationalised banks offer for a period of five-year term. The Fixed deposit rates in post office are determined by the government at the start of each quarter. Once the investment is made, the interest remains constant for the entire deposit duration. Interest is payable annually but is calculated every four months.
Better service quality: Better service quality: The elderly feel more confident when they have a personal connect with those dealing with their finances. And since, the senior citizens get more of personal attention and quality service, P.O. is definitely the right place for them to be at.
Tax efficient: Also known as Post Office term deposits, the FDs offer some of the most attractive tax benefits. In post offices,the interest earned is added to the customer’s total income in the year of receipt and is taxable if the deposits are for less than a period of five years. However, the senior citizens must make a minimum of 5-year deposit to enjoy the tax benefit under section 80C of the Income Tax Act.
The final word Those looking for secure and assured fixed returns on their investments need to carefully make their choices. The postal service savings scheme ensures you both these while helping you get maximum returns. So, it’s the right time to visit your nearest PO and switch over to get the best fixed deposit rates in Post Office.