Postal Scheme

Postal Scheme

Postal schemes, also known as post office savings schemes, are investment options offered by the Indian postal service. These schemes are designed to provide safe and secure investment options for small investors, especially those in rural areas who may not have access to traditional banking services.

Types of Postal Schemes

Post Office Savings Account

This is a basic savings account that can be opened with a minimum deposit of Rs. 20. The account offers an interest rate of 4% per annum and allows for deposits and withdrawals at any post office.

Post Office Time Deposit Account

This is a fixed deposit account that can be opened for a minimum of Rs. 200 and for a term ranging from 1 to 5 years. The interest rate on these deposits ranges from 5.5% to 6.7% per annum, depending on the term of the deposit.

National Savings Certificate (NSC)

This is a tax-saving investment option that can be purchased for a minimum amount of Rs. 100. The NSC has a maturity period of 5 years and offers an interest rate of 6.8% per annum, compounded annually. The interest earned is also eligible for tax deductions under Section 80C of the Income Tax Act.

Public Provident Fund (PPF)

This is a long-term investment option that can be opened with a minimum deposit of Rs. 500. The PPF has a maturity period of 15 years and offers an interest rate of 7.1% per annum, compounded annually. The interest earned and the investment made are both eligible for tax deductions under Section 80C of the Income Tax Act.

Investing in postal schemes can be a good option for individuals who are looking for safe and secure investment options with guaranteed returns. However, investors should carefully consider the terms and conditions of each scheme and the prevailing interest rates before making an investment decision.

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