The post office saving scheme offers different sorts of deposit schemes for individuals who need to invest their money. These schemes are otherwise called little savings schemes. The USP of these schemes is their sovereign assurance, i.e., they are upheld by the central government. A portion of these schemes, for example, NSC likewise offer tax-saving advantages under section 80C of the Income-tax Act.
The interest rates that are offered on these schemes are evaluated and fixed quarterly by the government.
The Post Office Saving Schemes incorporate a few items that offer unwavering quality and risk-free returns. These schemes are operated by the means of 1.54 lakh post offices spread everywhere throughout the nation. For instance, the PPF scheme; PPF is operated by the means of 8200 branches of public sector banks along with the post offices in every city.
These schemes were familiarized to give investment avenues and teach savings among Indians from across all economic classes. Each post office gives these savings schemes to assist people from across India to apply and enlist without any problem.
Types of post office Savings Schemes
Currently, the government has 9 postal saving schemes to investment by the people. They are listed beneath.
Public Provident Fund (PPF)
PPF is one of the ideal or most preferable schemes and is accessible with a lock-in time of 15 years. In any case, investors can have partial withdrawal just after 5 years. A minimum deposit amount of Rs. 500 every year is required to keep the account active.
National Savings Certificate (NSC)
One can invest in NSC with a little deposit amount of Rs. 100 as a solitary individual, jointly or as a guardian of a minor, while the lock-in period for this scheme is of 5 years. Also, the yearly interest amount on NSCs are re-invested and paid out as a combined amount at the maturity time.
Post Office Monthly Income Scheme
This post office monthly savings scheme is another dependable savings device that permits you to invest a maximum amount of Rs. 4.5 Lakh individually and Rs. 9 Lakh jointly. As a MIS plan, it permits investors to produce a consistent monthly income amount.
Sukanya Samriddhi Account
Sukanya Samriddhi Scheme Under this Indian post office saving scheme, parents or legal guardian of any girl child till the age of 10 years old are qualified to open this account in the kid’s name. A maximus of 2 accounts is taken into consideration for a family of two girls separately. When the child is 21 years old, she is qualified to claim the matured money.
Maturity of the account is different according different girl child’s age on the date of registration. Hence, with a constraint of age up to 10 years old, the maturity term will be stretched out from 21 years old. For example, if the kid was 5 years old on the date of registration, the time of maturity will be 21 years + 5 years, i.e., 26 years.
Senior Citizen Savings Scheme
Investors who are 60 years of age, or 55 years of age, in the case of voluntary retirement, can store up to Rs. 15 lakh over their lifetime in a Senior Citizen Savings Scheme to procure regular income via interest. The arrangement comes with a lock-in period of 5 years.
Post Office Savings Account
You can likewise, open a savings account with the post office, which is like savings accounts opened with banks, by depositing Rs.20 as a minimum amount. Along with that, you should maintain the account with at least Rs.50. India Post additionally permits you to move the amount in your post office savings account online.
5-Year Post Office Recurring Deposit Account
With little monthly investments, you can choose the same number of RD accounts as you need with a post office. These investment choices permit you to make intermittent deposits while enabling considerable corpus creation over the tenure of investment.
Post Office Time Deposit Account
One can also open time deposits as post office saving scheme for 1, 2, 3 and 5 years of term and even minors more than 10 years old can invest in time deposits alongside a legal guardian. The savings choice is like the fixed deposits offered by banks.
Kisan Vikas Patra (KVP)
KVP or Kisan Vikas Patra certificates permit you to acquire double the deposited amount in 9 years and 10 months. Likewise, the deposit can be enchased simply after 2.5 years against the installment of a nominal penalty.
Benefits of the Post Office Investment-Saving Schemes in India
- Simple & easy to invest
The saving schemes are simple and easy to enroll and are most suited for both rural and urban investors. Any individual who needs to fence risk in the portfolio for a fixed average return can invest in these schemes. The straightforwardness and accessibility make these investment alternatives a very much preferred savings cum investment choice.
- Limited documentation and legitimate systems in post office guarantee that these saving schemes are easy to choose and safe to be locked onto as the government backs them.
- The investments in the Post Office Schemes are increasingly forward-looking and long term oriented with the investment time frame stretching out as long as 15 years for a PPF account. In this way, these investment alternatives are a magnificent choice for retirement and pension plan.
- Tax exception
A large portion of these schemes are qualified for tax rebates under Section 80C for the deposited amount. Some of the schemes like the PPF, the SCSS, the Sukanya Samriddhi Yojana, and etc., have the interest amount earned excluded from tax collection.
- Interest rates in these schemes go from 4% to 9%, which is quite risk free. There is a negligible amount of risk required, as the Government of India holds these investment alternatives.
- Various vessels of items
There is a wide range of items dependent on various kinds of people. Public Provident Fund (PPF), Kisan Vikas Patra and Sukanya Samriddhi Yojana are a portion of the more notable schemes.
Who all can invest in Post Office Saving Schemes?
Investors who favor a no-risk investment portfolio alongside generous return generation can choose these postal schemes. Saving ways like National Savings Certificates, Sukanya Samriddhi Accounts, and PPF accompany appealing interest rates and zero money related dangers. Additionally, the base investment amount is low and moderate; so investors from lower economic classes can investing in these schemes too.
How can you apply for a Post Office Saving Scheme?
You can apply for any of the post office saving schemes by following the given steps:
Step 1
Visit your favored post office branch.
Step 2
Get the relevant account opening form for the picked scheme from your closest post office. In any case, you can also download these forms online from India Post’s official site.
Step 3
Fill the form with essential details and submit it alongside your KYC verification and photos, and other important documents whenever required according to your post office saving scheme.
Step 4
Complete enrolment by keeping the necessary amount according to the investment scheme that you have chosen.
Post office savings scheme is one of the most favored investments among every economic class. The government has made these little savings schemes accessible by means of post offices to give a safe, risk free investment avenue to general public. By giving them great returns and guarding their investments, these schemes are anything but difficult to manage. In case the features and advantages restated above meet your financial objectives, at that point invest in a post office savings scheme to make sure about your financial future at negligible risk.
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