What are different kinds of Post Office Saving Schemes?


Post Office Saving Schemes

The Post Office Saving Schemes include a variety of products that provide the trust and risk-free return on investment which is associated with a central government-run savings portfolio. These schemes are regularised via ~ 1.54 lakh post offices all over India. Post office schemes are created to provide financial security to the common man with assure return on investment. More than 1.54 lakh post offices are there In India, among which 89% is spread over the rural areas. Small Savings Schemes are operated mostly through these branches along with public sector banks. Around $137 Billion (Rs. 9 Lakh Crore) are linked up with Small Savings Scheme.

India government provides a tax benefit to many postal saving schemes like senior citizen savings scheme, national savings scheme, Sukanya Samriddhi Account etc.

Types of saving scheme provided by the post office are mentioned below:

  • 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 FY 2017-18. And the post office interest rates 2018 are effective from 1st January onwards. Except for the Senior Citizens Saving Scheme and Savings Account interest rates, Government has reduced by around 0.2% (20 BPS) for all the schemes. 5 out of above schemes offer tax benefits under section 80C, which are Public Provident Fund (PPF), Sukanya Samriddhi Account (SSA), National Savings Certificate (NSC), Senior Citizens Savings Scheme (SCSS)  and Time Deposit Schemes.

In past, the post office savings interest rates were fixed for many years.  However, after 2011 the rates of post office investment are connected to the rates of government securities (G-Secs). They are reviewed on yearly basis and the Indian government fixes these rates on every year March.

Benefits of savings scheme provided by the post office:

Hassel free to invest: The saving schemes are simple and hassle-free 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 limited documentation and easy process in post office confirm that these saving schemes are simple to obtain 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 helps after retirement as well as good for young individuals who can invest for their pension.

Tax exemption: these saving scheme of post office give tax rebate under sec 80c.

Risk-free & higher interest rates: Interest rates range from 4% to 9% which is completely risk-free and gives a great return.

Different variety of products: There are different kind 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 common schemes.

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