Types of Post Office Saving Schemes in India

Types of Post Office Saving Schemes in India

India Post offers 9 types of savings schemes to residents of India. Let’s take a look at them one by one.

While it may have been overlooked in the recent years, India Post has played an important role in offering financial services to each and every corner in the country. It has been the sole financial services institution for many underserved sections of the society and far-flung geographies. Similar to banks, the interest rates applicable to India Post savings schemes are revised periodically. Some of these saving schemes like PPF offer tax benefits too. At present, India Post offers 9 saving schemes.

Let us look at them one by one:

• Post Office Savings Account: The Post Office savings account operates in a similar manner to savings accounts that can be opened with banks. The interest rates applicable to these savings accounts are also at par with bank’s saving accounts

• Post Office Fixed Deposit: The Post Office fixed deposits can be opened for 1, 2, 3 and 5 years of tenure. The interest rates are also at par with the bank’s fixed deposits

• Post Office Recurring Deposit: The Post Office offers 5-year recurring deposits at lucrative interest rates

• Post Office Monthly Income Scheme: Post Office allows investments up to Rs. 4.5 lakh for individuals and Rs. 9 lakh for joint borrowers. Investors can earn a steady monthly income until maturity date of the scheme

• Senior Citizen Savings Scheme (SCSS): Senior citizens can deposit up to Rs. 15 lakh to earn regular interest income. It has a lock-in period of 5 years

• Public Provident Fund (PPF): Probably the most well-known long-term savings scheme, PPF is a popular tax saving scheme in India. It matures in 15 years, however, partial withdrawals are allowed after the first 3 years

• National Savings Certificate (NSC): Another avenue to save money and avail tax deductions, National Savings Certificates are issued for a period of 5 years and fetch above-average returns

• Kisan Vikas Patra (KVP): This is also a certificate scheme from India Post. It offers the opportunity to double one’s one-time investment in 124 months in a relatively risk-free manner when compared to other avenues

• Sukanya Samriddhi Yojana (SSY): Specially meant for the girl child, Sukanya Samriddhi Yojana is a savings scheme that allows households with 2 daughters to operate 2 individual accounts and get above-average returns. Once the child reaches 21 years of age, they can claim the maturity amount

These are the 9 savings schemes offered by India Post. Post office saving schemes offer moderate returns on your investments. The best part is that these are totally safe avenues to invest your hard-earned money and offer assured returns. If for nothing else, the relative safety of these investment avenues should be enough for you to give them a good look.