Post Offices have been there in India since the British era which initially started their service by delivering mail. Over time, it expanded to offer financial services like banking and investments. These accounts are backed by the government which means they come with a sovereign guarantee.
Post Office Saving Schemes have a multitude of reasons to be a preferred choice for investors.
Firstly, the government guarantee confirms the safety of the investment. Secondly, the variety of schemes caters to different financial objectives, whether it's wealth creation, regular income or tax savings.
Thirdly, it provides the ease of access to the scheme particularly in rural areas as Post offices are available in every corner of India as over 1.54 lakh post offices spread all over the country operate these schemes. This makes these schemes good for financial inclusion and available to a broad section of the Indian population.
Fourthly, post office saving schemes are suitable for short-term and long-term investment options for the investors. These scheme provide fixed returns which are predetermined. Post office saving schemes offer competitive interest rates so that your money grow over time.
Minimal documentation is required to invest in the post office saving schemes. The application process is simple, less time consuming and easily accessible for both urban and rural investors.
You can start with small amounts and gradually increase your investment. This flexibility suits various financial situations.
Some of the post office saving schemes like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Senior Citizen Savings Scheme (SCSS) and National Savings Certificate (NSC) offer tax benefits under Section 80C of the Income Tax Act 1961.
Some schemes like Sukanya Samriddhi Yojana, NSC, etc. offer a tax rebate even on the interest earned.
These schemes are easy to invest as they involve very simple process of investment with very minimal documentation requirement and hence, make them a much preferred savings option for the uneducated and rural population.
Options like the Monthly Income Scheme (MIS) provide a steady stream of income. Ideal for retirees or those seeking predictable cash flow.
Post Office offer some of the special schemes designed particularly for girl child to build a long term corpus or for senior citizens which have guaranteed returns.
Last but not the least, regular contributions to post office saving schemes instill financial discipline. It proves to be a step toward achieving your financial goals.
| Scheme Name | Interest Rate | Tenure |
|---|---|---|
| Post Office Savings Account | 4% | Nil |
| Mahila Samman Savings Certificate | 7.5% | 2 years |
| Post Office Time Deposit | 1yr:6.9%, 2yr:7.0%, 3yr:7.1% & 5yr:7.5% | 1/2/3 or 5 years |
| Post Office Recurring Deposit | 6.7% | 5 years |
| Post Office Monthly Income Scheme | 7.4% | 5 years |
| National Savings Certificate | 7.7% | 5 years |
| Senior Citizen Savings Scheme | 8.2% | 5 years |
| Kisan Vikas Patra | 7.5% | 9 years 7 months |
| Public Provident Fund | 7.1% | 15 years |
| Sukanya Samriddhi Yojana | 8.2% | 15 years |
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