5 Best Post Office Savings Scheme; Assured Good Returns

The post office savings account is one of the most popular and easy to use savings accounts in India. A post office savings account is similar to a regular savings account in many ways.

It is considered a highly secure tool that can deposit funds and provide the option to fully or partially liquidize funds in a short period of time when required.  These accounts are preferred as they provide a guaranteed return on investment.

It is an ideal saving account for senior citizens and for those people who want to earn a regular income without exposure to risk.

The minimum amount for account opening is 500 rupees. Currently, the annual interest rate offered by this account is 4 %.

This saving account can also be opened by minors over 10 years old in their own name. A single person can operate only one account at a time.

Post Office Saving Account: Details

• Initial minimum deposit: Rs.20
• Required minimum balance for account without cheque book: Rs.50
• Initial or minimum balance for account with cheque book: Rs.500
• Rate of interest: 4% p.a
• Tax Free Interest: Up to Rs.10,000 p.a

Here we have mentioned 5 types of post office saving accounts / schemes:

1. Post Office Time Deposit Account (TD): Post office time deposit (TD) account is a popular investment option and can be easily opened at any post office nearby, with a minimum amount of 1,000 rupees.

Investments are not limited in this scheme and can be increased in multiples of 100 rupees. If you are considering investing in a small savings plan, you can prefer this scheme.

There will be same rate of interest for the period of 1 to 3 year which is 5.5% and for a period of 5 years it is 6.7%.

2. Post Office Monthly Income Scheme Account (MIS): It is another investment scheme under post office saving account that offers investors guaranteed returns at 8.5% per annum as a fixed monthly income.

We can deposit a sum of Rs.1,000 up to Rs.4.5 lakh in a single account while up to Rs.9 lakh in a joint account. This scheme also provides monthly fixed income.

Accounts cannot be closed prematurely before the completion of one year. You have to give penalty if you close your account before the maturity of one year.

3. Senior Citizen Saving Scheme (SCSS): It is a scheme sponsored by government for senior citizens. The main purpose of this scheme is to help senior citizens to ensure a regular flow of income. This scheme provides guaranteed interest payments that can be claimed on a quarterly basis.

The deposit can vary from Rs.1,000 up to Rs.15 lakh and the rate of interest is 7.4% p.a. A person who is above the age of 60 Years is eligible to open this account.

4. National Saving Certificates (NSC): NSC offers five year of tenure where the account holder is required to create account with 1000. Maximum deposit is not mentioned in this type of saving account. Here the rate of interest get compounded annually and is paid only after the maturity.

A single person can operate any number of accounts under the scheme. Under this scheme certificate can also be transferred as security to the housing finance government companies banks and others.

5. Kisan Vikas Patra (KVP): This scheme was launched in the year 1988 by India Post and the main purpose to launch it was to encourage small savings in the country for the future security of investors. It is a small savings tool that attracts people to invest in a long-term savings plan.

The minimum deposit required for this scheme is Rs.1000. The applicable rate of interest is 6.9% p.a, while tenure for the account is 124 months. The point to be noted is that the account varies with the variation in the rate of interest.