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Post Office top 5 Saving Schemes

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Post office saving scheme is the oldest method of saving scheme offered by India Post. The network of this India post is large with 1.55 lakh plus post offices across India.  Initially, the post office has started their services for mailing services, gradually they increased their services in banking and remittance, insurance etc. They offer 9 different saving schemes with a high rate of interest.

To know more about the different saving schemes you can visit official site www.indiapost.gov.in. Here, are the top 5 postal saving schemes. Each saving scheme has different interest rates.

Post Office Monthly Income Scheme(MIS)

In MIS, we invest a certain amount and obtain the interest monthly.

Features

  1.  Any individual with identification proof can open the account. The account can be opened either by using cash or by cheque. Two or three individuals combined together can open a joint account.
  2. After opening the account or at the time of opening the account, customers can provide the nominee details.
  3. The account can be transferred from one post office to another post office. Multiple accounts can also be opened by any individual. However, the total amount including all the accounts of any individual should not exceed 4.5 lakhs and in the case of a joint account, it should not exceed 9 lakhs.
  4. The joint account holders should have an equal share. The joint account can be converted to a single account and a single account can be converted to the joint account.
  5. Minors can also open the account and access it. Once they became major they should convert their account.

Investment and interest rates

The account once opened is for 5 continuous years. Any individual can invest the amount in multiples of Rs.1500. Currently, the interest rate offered for this scheme is 7.3% per annum payable monthly.

Recurring Deposit(RD)

In the Recurring Deposit scheme, you invest a fixed amount per month for a certain period of time. After the completion of the investment period, you receive the total accumulated amount along with interest.

Features

  1.  Any individual with identification proof can open the account. The account can be opened either by using cash or by cheque. Two individuals combined together can open a joint account.
  2. After opening the account or at the time of opening the account, customers can provide the nominee details.
  3. The account can be transferred from one post office to another post office. Multiple accounts can also be opened by any individual. However, no maximum limit for RD savings.
  4. The joint account can be converted to a single account and a single account can be converted to the joint account.
  5. Minors can also open the account and access it. Once they became major they should convert their account.

Investment and Interest rates

The RD account is opened for 5 years if needed it can be continued for another 5 years. The minimum amount needs to be invested per month is Rs.10 or multiples of Rs.5. The interest rate is 6.9% per annum which is compounded quarterly.

Public Provident Fund

The scheme specially designed for savings-cum-tax-savings and it offers an attractive interest rate.

Features

  1.  Any individual with identification proof can open the account. The account must be opened with the minimum of Rs. 100. The account can be opened either by using cash or by cheque.
  2. After opening the account or at the time of opening the account customers can provide the nominee details.
  3. The account can be transferred from one post office to another post office.
  4. Another account can also be opened on the minor name. However, the total amount should not cross the maximum limit.

Investment and Interest rates

The maturity period of PPF is 15 years. Rs. 500 minimum deposit amount for a financial year and Rs. 1,50,000 maximum amount limit. The interest rate is 7.6% per annum which is compounded yearly.

Senior Citizen Saving Scheme(SCSS)

The scheme specially designed for elderly people with 60 years of age.

Features

  1.  Any individual with identification proof and age of 60 years can open the account.
  2. Any individual with the age of 55 or more and less than 60 can open the account besides that an individual must be retired on VRS or superannuation.
  3. The depositor may operate the account jointly with a spouse.
  4. The account can be opened either by using cash or by cheque. For the amount greater than one lakh cheque must be used and below one lakh cash must be used.
  5. After opening the account or at the time of opening the account customers can provide the nominee details.
  6. The account can be transferred from one post office to another post office. Multiple accounts can also be opened by any individual. However, the total amount of all the accounts must not exceed the maximum limit.

Investment and interest rates

The maturity period of SCSS is 5 years. The amount must be invested in multiples of 1000 and the maximum not exceeding Rs.15 lakh. The interest rate is 8.3% per annum.

Sukanya samriddi Scheme

The scheme designed for a girl child to build their future for education and marriage expenses.

Features

  1.  Natural guardian can open the account on a girl child.
  2. A guardian can open two different accounts on two different girl child.
  3. The account can be opened in the name of the girl child. However, the age of the girl child must be below 10 years from the date of birth.

Investment and interest rates

once the girl child completes 21 years the account must be closed. In multiples of 100, the investment must be made. The minimum amount to be invested is 1000 and the maximum amount to be invested is 1,50,000 in a financial year. You can make lump sum deposits in a financial year. Yearly compounded interest rate is 8.1%

Finally, it all depends on the interest of an individual to invest in the scheme.

 

 

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