Features of Post Office Saving Schemes

Post Office Saving Schemes come with distinctive features designed to cater to the diverse financial needs of investors. These features include,

Eligibility to Invest: These Post Office Saving Schemes are offered to resident Indian individuals. Majority of post office saving schemes also allow a parent or guardian to invest on behalf of a minor so that the minor can also get the invetment benefits of the schemes. However, the minors are required to produce their identity, address and age proof along with KYC documents in their name upon attaining majority.

Easy Process to Invest: Post Office Saving Scheme's application process is very easy and require minimal documents for investment. The investor needs to just go to the post office where he wants to open his post office account, fill up the application form for specific scheme in which he wants to invest like PPF, RD, etc., submit minimal required documents, deposit the amount and submit the application form. His post office savinfs scheme account will be open in no time. People not only from urban areas but also from rural area find it very easy to invest in these schemes sue to their easy process. Even any further transaction in the scheme is very simple and easy to execute. Such future transaction are required in case of PPF, Recurring deposit account, savings account. You can also access investment details online through net banking and mobile app. You can receive auto payments in your bank account directly. One may open the account of many schemes such as PPF even with banks.

Flexibility in Investment Tenure: They are available for different investment tenures which the investors can select as per their requirements and financial objectives. There are some scheme which offer small tenure of investment like MSSC for 2 years, some schemes offer medium tenure like NSC, RD, etc. for 5 years and there are some scheme which offer long tenure like PPF for 15 years. The investors are free to choose any scheme to invest based on their investment objectives and tenure.

Nominal Account Opening Investment: Such schemes usually do not require large investment amounts. Some of the schemes such as Rs.1000 as in case of Kisan Vikas Patra. Post Office Recurring Deposit can be opened with a small amount of Rs.100 p.m. only. Minimum investment in post office savings scheme starts from as low as Rs.100 and there is no limit on maximum amount in many of the post office schemes such as NSC, KVP, RD, Time deposit, etc. Minimum investment in various post office saving schemes is given in the below table for your quick reference.

Attractive Interest Rates: Very competent and attractive interest rate is offered by these Post Office Saving Schemes. Post office savings schemes offer risk-free interest rates in the range from 4% to 8% which is highly competitive with banks.

Ease of Accessibility: through a vast network of post offices across the country makes these schemes convenient for all.

Transferable: It is possible to transfer your account from one post office to another post office without any problem.

Review of Interest: Interest of Post Office Saving Schemes are usually reviewed by the government in every quarter of the financial year.

Government Backing: Post Office Saving Schemes come with the feature of government backing which makes them a prudent choice for risk averse persons and retirees seeking stable returns with peace of mind. These schemes provide a sense of financial security and are a reliable source of income particularly for senior citizens and small-income group individuals. The interest rates on post office savings schemes are fixed and revised by the government periodically. Such returns are steady and not like market-linked instruments where they can fluctuate.

Being backed by the government, these schemes have strict regulatory oversight, transparency and follow of rules which works as an extra security for investors.

Nomination Facility: Nominee is a person who is authosied to receive the account proceeds in the event of death of the account holder. Making a nominee in the account is very important as the account proceeds are released in the nominee's favour very easily and quickly and that too with submission of very little documents. If nominee is not declared in the account then the claimant is required to submit many documents which may take a lot of time to arrange them.

Post Office Saving Schemes allow the investors to make a nominee for their investment so that there won't be a problem to release the funds in favour of nominee after the death of investors. Hence, fill up the form of nomination at the time of opening your post office saving scheme's account. You can refer to Death Claim Settlement Rules for Post Office Schemes in order to get the details in this regard in depth.