Post Office investment-savings schemes in India offer secure, government-backed options with guaranteed risk-free returns. These schemes cater to risk-averse investors and include popular products like the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), and Monthly Income Scheme (MIS). They also offer tax benefits up to Rs.1.5 lakh under Section 80C of the Income Tax Act.
Recently, deposit limits have been increased, making them even more attractive. The following table summarizes the details of various post office schemes.
The various savings schemes under post office investments are given below.
The following are the advantages of investing in post office saving schemes:
The savings schemes are easy to enroll in and best suited for rural and urban investors. Anyone who wants to hedge risk in the portfolio for a fixed decent return can invest in these schemes. The simplicity and availability make these investments a much-preferred savings cum investment option.
Limited documentation and proper procedures in the post office ensure that these saving schemes are simple to opt for and safe to be locked onto as the government backs them.
The investments in the Post Office Schemes are long-term oriented, with the investment period extending up to 15 years for a PPF account. Therefore, these investment options are excellent for retirement and pension planning.
Most of these schemes are eligible for tax deductions under Section 80C for the deposit amount. A few schemes like the PPF, the Sukanya Samriddhi Yojana, etc., also have the interest earned amount exempted from taxation.
Interest rates in these schemes range from 4% to 9% and are risk-free. A minimal amount of risk is involved as the Government of India undertakes these investment options.
There is a wide range of products based on different types of individuals. Public Provident Fund (PPF), Kisan Vikas Patra, and Sukanya Samriddhi Yojana are well-known schemes. The government has made these small savings schemes available via post offices to provide a safe investment avenue for the public by providing good returns and keeping their investments safe. These schemes are easy to manage.
You can open a post office savings scheme account online through Internet banking, mobile app or by downloading the account opening form.
Step 1: Download and print the relevant application form from the post office’s official website.
Step 2: Attach all the necessary documents.
Step 3: Visit your home branch of the post office and submit the documentation to the relevant personnel.
Step 4: Pay the minimum amount required to open the account/scheme.
Step 5: The post office officials will verify your application, open your account and also give the passbook for the account.
Internet Banking can be activated online by existing account holders in post office. It can be done by visiting the nearest post office branch, filling the necessary application form or follow the below mentioned steps.
Step 1: Visit the Department of Posts (DOP) Internet Banking website.
Step 2: Click the 'New User Activation' button.
Step 3: Enter the 'Customer ID' and 'Account ID' and click the 'Continue' button. You can find them on the passbook provided.
Step 4: Once Internet banking is activated, enter your user ID and password to log in to your DOP Internet banking.
Step 5: Click on the 'General Service' tab on the menu and click on the 'Service Request' tab.
Step 6: Under the 'Service Request' section, click the 'New Requests' tab.
Step 7: Select the type of account you want to open from the multiple options.
Step 8: Enter the details on the application form and click the 'Submit' button.
Step 1: Download and log into the ‘India Post Mobile Banking’ app on your mobile from Google Play Store.
Step 2: Upon successful login, select the ‘Requests’ tab on the home screen to open a post office saving account.
Step 3: Enter the details, such as the deposit amount, tenure, the account from which you want to deposit the money, nominee, and others and submit.
Make sure you have the following documents ready while opening a post office savings scheme:
Investing in post office savings schemes can be a wise investment option for individuals who look for a safe and risk-free investment avenue with guaranteed returns over a long period. Various schemes have different criteria and returns. This article will help one understand various post office savings schemes and give an idea about available investment opportunities.