Post Office Schemes: Saving money is beneficial to anyone's financial future. Long-term savings can provide financial stability after retirement or at a later age when it is no longer possible to earn. There are several savings schemes in the post office. Let us know about them in this article.
Several people save money in post office account. This account may be created with just Rs. 500 as a minimum deposit. There are cheque books and drawing options available. Following that, a majority of individuals prefer to use a recurring deposit at the post office. It is sufficient to have a balance of Rs 10 in your account. Cash or checks can be used to open the account. These accounts presently have interest rates as high as 6.9%.
The Post Office Recurring Deposit is another option. A five-year minimum term is required. In Post Office RD, there is no maximum amount that may be saved. The Post Office Time Deposit is a good way to put money aside for a few years. A post office time deposit can be started with as little as Rs.200. Beginning with a one-year deposit, two-year, three-year, and five-year deposits are available.
Senior citizens over the age of 60 can join the Senior Citizen Savings Scheme. The scheme has a 5-year maturity term. With as low as Rs 1 lakh, the scheme may be initiated. This scheme's investment can be moved from one post office to another. The interest is calculated quarterly and payments are made in April, July, October, and January.
Another plan, Kisan Vikas Patra (KVP), can be bought with a minimum of Rs.1000. In 118 months, your money will have doubled. In this scheme, no matter how much money we put in, it will all double. KVP is available at any post office.
With a minimum deposit of Rs.100, this sort of account may be created in National Savings Certificates (NSC). This investment of Rs.100 crore has no upper limit. An annual compounded interest of 7.6% is calculated and paid at maturity. You may put money into this programme while working.
After retirement, a specific amount can be withdrawn. The remainder is paid out in the form of a complete pension. Section 80C allows for a tax deduction of up to Rs 1.5 lakh. Under Section 80CCD, an extra investment of up to Rs 50,000 is tax-deductible.
Post Office Monthly Income Plans. As part of this, the scheme is useful for those who want a regular income. A maximum of Rs. 4.5 lakh can be invested under this plan. Those who invest will get a monthly interest payment for the next five years. Amounts up to Rs.1500 can be invested.
A bank account can be used to withdraw funds from the Public Provident Fund (PPF) system. When it comes to the post office, it pays a rate of around 7.1 per cent. It pays a higher rate of interest than a time deposit at the post office. Before the PPF can be opened, there is a 15-year lock-in period.