Here are different kinds of Post Office Saving Schemes:
The Post Office Saving Schemes include a mixture of products that provide the trust and risk-free return on investment which is linked with a central government-run savings portfolio.
These schemes are regularised all over India through -1.54 lakh post offices. Post office schemes are formulated to give financial security to the general people with a guaranteed return on investment. There are more than 1.54 lakh post offices in India, amongst which 89% is spread over the rural areas.
Small Savings Schemes are managed often through these branches along with public sector banks. Approximately $137 Billion (Rs. 9 Lakh Crore) are associated with Small Savings Scheme.
The India government provides a tax benefit to various Postal Saving Schemes like Senior Citizen Savings Scheme, National Savings Scheme, Sukanya Samriddhi Account, etc.
Types of Saving Scheme provided by the Post Office :
Post Office Savings Account
5-Year Post Office Recurring Deposit Account (RD)
Post Office Time Deposit Account (TD)
Post Office Monthly Income Scheme Account (MIS)
Senior Citizen Savings Scheme (SCSS)
15 year Public Provident Fund Account (PPF)
National Savings Certificates (NSC)
Kisan Vikas Patra (KVP)
Sukanya Samriddhi Accounts(SSA)
The Government has currently announced the interest rates for PPF, NSC, KVP and Sukanya Samriddhi for the Financial Year 2017-18. And the Post Office Interest Rates 2018 are valid from 1st January onwards. Besides for the Senior Citizens Saving Scheme and Savings Account interest rates, the Government has reduced nearby 0.2% (20 BPS) for all the schemes.
Under section 80C, 5 out of the schemes, as mentioned above, offer tax benefits, which are Public Provident Fund (PPF), Sukanya Samriddhi Account (SSA), National Savings Certificate (NSC), Senior Citizens Savings Scheme (SCSS) and Time Deposit Schemes.
In the past, Post office savings interest rates were fixed for several years. But, after 2011, the rates of post office investment are associated with the rates of government securities (G-Secs). They are analyzed yearly and the Indian Government fixes these rates every year March.
Benefits of Post Office Savings Scheme :
Hassle-free to Invest: The saving schemes are hassle-free and straightforward to enroll with and are best suited for the rural and the urban investor who wants to safeguard the risk in the portfolio for a fixed good return. Their hassle-free and simple process make these a much-availed savings option.
Simple Procedure to Enroll: Minimum documentation and easy process in Post Office confirm that these saving schemes are simple to get and safe to be locked into, which is also regularised by the Indian Government.
Investments for Long-term: Long-term investment provided by post office different saving schemes benefits after retirement as well as good for young individuals who can invest for their pension.
Tax Exemption: Post Office Saving Schemes give tax rebate under sec 80c.
Risk-free & Higher Interest Rates: Interest rates range from 4% to 9%, which is totally risk-free and gives a high return.
Different Types of products: There are different kinds of products based on the different needs of different types of individuals. Public Provident Fund (PPF), Kisan Vikas Patra and Sukanya Samriddhi Yojana are some of the more popular schemes.