Best Savings Scheme in India for Budgeted People

Indian Postal Savings Scheme 

Indian Postal Department propose a wide variety of Investment Scheme for various aged persons like Individuals, Girl child, Farmers, Senior Citizen, Budget Family Persons. Indian Postal Savings Schemes remains reliable institution in India after Banks as far as Savings concerned. This Blog wrap up Different Indian Postal Savings Scheme and its welfare. 

Various Indian Postal Savings Schemes are explained below: 

1. Savings Bank (SB) Account:

This is a basic regular savings account that is highly secure to deposit investment . It can be created in only one post office and can be transferred to one post office to another. The Rate of interest is 4% and minimum deposit is 500₹. Every year interest will be paid as per their savings. ATM facility are available for this scheme and can be withdrawn from any banks ATM too. No service charge for PO ATM withdrawal, Free SMS Service. Interest upto 10000₹ are tax free. 

2. Recurring Deposit (RD) Account:

This is a monthly investment for a fixed period of 5 years also you can earn big by investing little as  just 100₹ per month with best interest rate. The Rate of Interest is 5.8% quarterly compounded and monthly minimum deposit is 100₹. Let’s say instance for denomination 1000₹ per month investment, total deposit for 5 years is 60000₹. Maturity amount is 69697₹. After 3 years Premature closure is allowed with SB interest. After one year loan is admissible at 50% savings.

3. Monthly Income Scheme (MIS):

This is a scheme that is highly reliable, low risk and generate steady income. The Rate of Interest is 6.6% per annum payable monthly and monthly minimum deposit is  1000₹. (Rs. 4.5 lakhs individually or Rs. 9 lakhs jointly), and the investment period is 5 years. For instance, Maturity 100000₹ monthly interest 550₹ Total Maturity Value 133000₹. Monthly interest can be withdrawn. After 1 or 3 years premature closure is allowed with 2% or 1% deduction.

4. Fixed Deposit (FD): 

This is a scheme well suited for those who belong to lower middle class income persons would help the habit of saving and shower benefits in future. It also has various tenure such as 1year, 2years, 3years, 5years with Rate of Interest is 5.5% to 6.7% quarterly compound and monthly minimum deposit is 1000₹. It also can be closed prematurely after 6 months with SB rate of interest. 5 years FD scheme qualifies for tax saving under section 80C of Income Tax Act.

5. Senior Citizen Savings Scheme (SCSS): 

This is a solely government sponsored savings scheme that apt's for senior citizen above age 60 years, retired superannuation personnel’s age 55, retired defence personnel’s age 50 to ensure their regular income. The Rate of Interest is 7.4% quarterly and paid, monthly minimum deposit is 1000₹ and maximum deposit is 15lakhs. Account may be closed after 5years from the date of opening by submitting necessary documents as prescribed in application form with passbook. It also belongs to Tax free act under section 80C upto 50000₹ tax exemption. 

6. Sukanya Samridhi Account (SSA): 

This is a scheme that is for developed for the upliftment  of girl child that can be opened by the girl child of below age 10. The Rate of Interest is 7.6% Annually compound interest and account opening minimum deposit is 250₹ and maximum deposit is 1.5lakhs. For instance, if monthly deposit is 1000₹ for 15years total deposit will be 180000₹. Maturity value would be approximately 510373₹ after 21years period. Depositing period is 15years, Maturity period is 21years or else after marriage. Can withdraw 50% amount after 10th std of girl child studies. It also can be claimed for IT exemption under section 80C. 

7. Public Provident Fund (PPF): 

This is a scheme implemented in a motive to initiate citizen savings for various personal causes such as retirement, children’s education, girl child’s future , among others. The Rate of Interest is 7.1% annually compound interest and minimum deposit is 500₹ and maximum deposit is 1.5lakhs for a financial year. For instance, If monthly deposit  is 1000₹ for 15years total deposit is 180000₹ and maturity value is 315572₹. It also can be claimed IT exemption under section 80C. 

 

8. Kisan Vikas Patra (KVP): 

This is a scheme mainly framed to double your investment after a predetermined period of time (124 months). The Rate of Interest is 6.9% per annum and minimum deposit is 1000₹. For 1lakh investment, Maturity value is 2lakhs. But the investment will be doubled in 124 months of time. Irrespective of market fluctuations, individuals who have put their money into this scheme would generate a guaranteed money at the end. It also can be claimed IT exemption under section 80C.

9. National Savings Certificate (NSC): 

This is a scheme high secure and low risk scheme suits for low and medium income investors with host of benefits. The Rate of Interest is 6.8% annually compound interest and minimum deposit is 1000₹. This scheme can be opened at any post office at fixed maturity period of 5 years. For instance, if 100000₹ is deposited, maturity value is 138950₹. For FD, IT exemption is applicable under section 80C.

Thus, depending upon the people’s financial need and investment duration one can choose suitable savings scheme for them. Interest rates (revised) for the period 01.01.2021 to 31.03.2021. Subject to further orders of government of india. For further enquiries contact the nearest post office.