Post Office investment schemes in India


There are a number of investment schemes offered by post offices in India. Some of these schemes are exclusive to post offices which means that Indian banks do not offer them. Read this article for more information regarding the latest post office investment schemes in India.

There are a number of post office investment schemes in India where you can invest some money. We know that the investment options like fixed deposits in banks or mutual funds offer higher return in comparison to the post office plans. Even the people invest in these plans because of the safety and security associated with post offices. Moreover most of the investment plans in post offices are free from taxes too. Some of the popular schemes in post offices are MIS (monthy income scheme) , public provident fund, national saving scheme and time deposit. Let us discuss these post office investment schemes in India in detail.

Monthly income scheme ( MIS) of post office

It is one of the most popular investment schemes in India. Thus plan offers a fixed monthly return for a particular deposited sum. This plan offers an interest rate of 8.2% and the minimum deposit allowed is Rs 1500. There is a limitation for maximum deposit in MIS too; it is Rs 45000 for a single person and Rs 90000 for a joint account. If you invest the monthly return obtained from the MIS in another recurring deposit, you can earn an interest rate of 10.5%.

Recurring Deposit in Post Office

The interest rate in the recurring deposit of the post office fluctuates from time to time. At the time of writing this article, it is 4%. The term of a recurring deposit is of 5 years but you can withdraw the money after 3 years also in emergency.

Time Deposit in Post Office

This scheme is just like the fixed deposit scheme of banks. You can choose the time deposit of one year, two year or five year as per your convenience. The interest rate given in one year deposit is 7.8 % and that for 5 year deposit is 8.3%. A demerit of time deposit in post office is that it does not allow joint accounts. However, the bank fixed deposits allow you to make the deposit jointly.

Senior citizen savings scheme

The senior citizen scheme is available for people who have completed 60 years of age. This scheme of post office offers 9% interest rate and the term of the plan is 5 years. The maximum investment allowed in this scheme is Rs 15 lakhs. The amount obtained on maturity is tax free and thus it is a useful scheme for old people.

National savings scheme

The national saving schemes are quite popular especially in rural areas. You can get certificates of 100, 500, 1000, 5000, 10000 in this scheme and get the maturity amount after a fixed term. It is available for 5 years and 10 years term at present. One of the key benefits of this scheme is that the deposit amount and the interest is tax free under section 80c.

I hope this post helped you to understand the different post office investment options available in India.


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Comments

Author: Partha Kansabanik18 Dec 2016 Member Level: Diamond   Points : 4

An informative article for the investors who are interested in various investment schemes being offered by the Post Offices in India. However, the author has failed to mention the Sukanya Samridhi Yojna in this article. Sukanya Samridhi Yojna is a part of Government's 'beti bachao, beti padhao' campaign. It promises a better rate of return than other schemes commonly offered by the Post Offices. This Yojna can be opted by the legal guardians of any girl child under ten years of age. A maximum amount of Rs.1,50,000/- can be deposited for any girl child in every financial year. Sukanya Samridhi Yojna can be opened in fourteen Banks and also in Post Offices.

The following article also discusses various tax-saving investment options being offered by the Post Offices:-
Tax-saving options offered by the Post Offices in India

Author: Venkiteswaran18 Dec 2016 Member Level: Diamond   Points : 5

I started my savings by buying and affixing 'savings stamps' from post office when I was just 10 or eleven years old. Then that was converted to a minor's savings bank account. It became inactive after I left for my job and could not operate the account.

However my savings connection with Post Office continued as I used to buy National Savings Certificates and Public Provident Fund account to avail income tax rebate.

Again it was history repeating, and I opened a fresh savings account with PO. That was for transferring the interest from a fixed deposit I started with them. After the deposit matured also, I started saving a small sum every month in the savings account. The account still exists though for the last many months I could not operate it as I had changed residence and the account could not be transferred due to software migration. I got the account transferred to the post office in my place. I hope to continue saving in that.

Investing or saving in Post Office has a sentimental value for me.



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