Best Saving Schemes in Post Office: Retirement, girl marriage to millennials, the risk-free investment caters to everyone

By: | Updated: June 22, 2018 11:52 AM

Saving Schemes in Post Office cater to the needs of different kinds of depositors. The risk-free investment plans are meant for everyone and almost each of your financial goals.

Post Office saving schemeSaving schemes in post office offers flexibility and risk-free return

Saving Schemes in Post Office are issued and managed by the Government of India. These are risk-free investment avenues which are ideal for tax-saving too. If you are looking for a long-term guaranteed way of generating wealth then post office saving schemes is ideal as it carries a sovereign guarantee. Moreover, different types of schemes are relevant for different purposes. The legislative has ensured that your hard earned money is not only invested with a risk-free return but also practical needs of the wage earning class can also be taken into account.

Retirement can be practically very sensitive. Hence, it becomes important to be aware about the investment plans at our disposals. These plans not only provide compounded interest but also, tax advantages.

   1 .National Saving Certificate

Return- 7.6% compounded annually and payable at maturity

The minimum investment amount is Rs. 100 and in multiples of Rs. 100 and there is no maximum limit. The deposit amount qualifies for tax deduction under section 80C of the IT act. The interest accrued annually and deemed to be reinvested is allowed deduction under section 80C of the Income tax act.

   2. 15 year Public provident fund

Return- 7.6% per annum compounded yearly.

Maximum investment allowed is Rs. 150,000 in a financial year. Depositors can invest in lump-sum or in twelve installments. Joint account is allowed. Nomination and transfer facility is available.   The maturity period of 15 years can be extended for further 5 years and so on. Premature closure is not allowed before 15 years. Deposits are qualified for deduction under section 80C of the IT act. Also, the interest is completely tax free.

  3. Senior Citizen Saving Scheme

Return- 8.3% per annum and interest payable on 31st March, 30th June, 30th Sept and 31st December in individual or joint capacity

Maximum limit is Rs. 15 lakhs. An individual of age 60years or more may open the account. The depositor has an option of opening the account below Rs.1 lakh by cash and for Rs. 1 lakh and above by cheque only.Nomination and transfer facility is available. Tax will be deducted at source if the interest amount is more than Rs.10000.This investment qualifies for the tax benefit under section 80C of the income tax act, 1961.

Millennials who wish to park their early earned income in safe hands but not for a very long period of time have  following options

1. 5-year post office Recurring Deposit Account

Return- 6.9% per annum compounded quarterly on individual/joint account

Account can be opened by cash or cheque. Nomination and transfer facility is available. Account can be opened in the name of a minor and a minor of years and above can open and operate the account. One withdrawal up to 50%  is allowed after one year. Premature closure is permissible after 3 years

2. Post Office Time Deposit Account

Return- 6.6% for one year a/c, 6.7% for two year a/c, three year a/c and 5 year a/c 7.4% for an individual

Nomination and transfer facility is available. Account can be opened in the name of a minor and a minor of 10  years and above can open and operate the account. However, on attaining majority minor has to apply for conversion of account. This investment qualifies for the benefit of section 80C of the Income Tax Act, 1961.Minimum of Rs.200 is required for opening of an account.

3. Post office Monthly Income Scheme Account

Return- 7.3% per annum payable monthly to individual/joint

Minimum amount required for opening the account is Rs.1500 and maximum investment limit is INR 4.5 lakhs in      single account and INR 9 lakhs in joint account.Nomination and transfer facility is available. Maturity period of 5 years. Account can be opened in the name of a minor and a minor of 10 years and above can open and operate the account. It can be prematurely en-cashed after one year but before 3 years at a deduction of 2% of the deposit and after 3 years at a deduction of 1% of the deposit. A bonus of 5% on principal amount is admissible on maturity.

Worrying about your gild children education and marriage? Post office saving scheme includes a specific    investment plan for your girl children. You can start planning for your daughters big events in life from the time she is born. Also, the return is slightly more as compared to other plans.

 1. Sukanya Samriddhi Account

Return- 8.1% per annum compounded yearly.

Minimum contribution is Rs 1000 and a maximum amount is Rs 150,000 in a financial year. There is no limit on number of deposits either in a month or in a financial year. Account can be closed after the attainment of 21 years of age by a girl child. Partial withdrawal is allowed for education and marriage expenses after the girl child attains the age of 18 years. The account can be opened up-to age of 10 years only from the date of birth. A guardian can open only one account in the name of one girl child and maximum two accounts in the two girl children.

Saving Schemes in Post Office also cater to farmers progress. The amount invested doubles till the maturity amount.

1. Kisan Vikas Patra

Return- 7.3% compounded annually.

Minimum investment required is Rs.1000 and there is no maximum limit. Certificate can be purchased by an adult for himself or on behalf of a minor. The maturity period is of 9 years and 10 months. Facility of nomination and transfer is available. The Lock in period is of 2.5 years.

READ ALSO: Income tax saving schemes for you

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition