Best 3 Post Office Savings Schemes
The Indian Postal Service offers a variety of savings schemes to help people save and invest their money. These schemes are safe, secure, and provide attractive returns, making them a popular choice among investors in India. In this essay, we will discuss the top three post office savings schemes in India.
- Public Provident Fund (PPF):
The Public Provident Fund (PPF) is a long-term savings scheme offered by the Indian Postal Service. The scheme was introduced in 1968 and has since become one of the most popular savings schemes in India. The PPF scheme offers a guaranteed return on investment and is backed by the Government of India. Here are some of the key features of the PPF scheme:
i. Investment Limit: The minimum investment amount for PPF is Rs. 500, and the maximum investment amount is Rs. 1.5 lakh per financial year.
ii. Tenure: The PPF account has a tenure of 15 years, and it can be extended in blocks of 5 years.
iii. Interest Rate: The PPF scheme offers an attractive interest rate of 7.1% per annum, which is compounded annually.
iv. Tax Benefits: Investments made in the PPF scheme are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The interest earned on the investment is also tax-free.
v. Withdrawals: Partial withdrawals are allowed from the 7th year of the account, subject to certain conditions.
- National Savings Certificates (NSC):
The National Savings Certificate (NSC) is another popular savings scheme offered by the Indian Postal Service. The scheme was introduced in 1959 and is available in two variants – NSC VIII and NSC IX. Here are some of the key features of the NSC scheme:
i. Investment Limit: There is no maximum limit for investment in the NSC scheme, and the minimum investment amount is Rs. 100.
ii. Tenure: The NSC VIII has a tenure of 5 years, while the NSC IX has a tenure of 10 years.
iii. Interest Rate: The NSC scheme offers an attractive interest rate of 6.8% per annum for NSC VIII and 7.2% per annum for NSC IX, which is compounded annually.
iv. Tax Benefits: Investments made in the NSC scheme are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. However, the interest earned on the investment is taxable.
v. Withdrawals: Premature withdrawals are not allowed in the NSC scheme.
- Sukanya Samriddhi Yojana (SSY):
The Sukanya Samriddhi Yojana (SSY) is a savings scheme introduced by the Government of India to encourage parents to save money for their daughters’ education and marriage expenses. The scheme was launched in 2015 and is available only for girl children. Here are some of the key features of the SSY scheme:
i. Investment Limit: The minimum investment amount for SSY is Rs. 250, and the maximum investment amount is Rs. 1.5 lakh per financial year.
ii. Tenure: The SSY account has a tenure of 21 years, and it matures when the girl child turns 21.
iii. Interest Rate: The SSY scheme offers an attractive interest rate of 7.6% per annum, which is compounded annually.
iv. Tax Benefits: Investments made in the SSY scheme are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The interest earned on the investment is also tax-free.
v. Withdrawals: Partial withdrawals are allowed from the SSY account when the girl child attains the age of 18, subject to certain conditions.
Conclusion:
The Indian Postal Service offers several savings schemes that cater to the needs of different investors. These schemes are safe, secure, and offer attractive returns, making them a popular choice among investors in India. The PPF, NSC, and SSY schemes are some of the top savings schemes offered by the Indian Postal Service. Investors should carefully assess their financial goals, risk appetite, and investment horizon before choosing a savings scheme. With the help of these post office savings schemes, investors can save money and achieve their financial goals in a hassle-free manner.
