Post Office Saving Schemes: which are best?


Post Office in India provides a host of savings schemes to the citizens and most of them assure a risk-free high returns on the investments. The reliability and operational convenience of the different post office savings schemes have made a lot of Indians turn towards these investment instruments as highly sought after options. Offered through 1.54 lakh post offices located across the country, some of the major benefits of these schemes include attractive tax benefits, reliability, security and high interest rates. Here is a list of some post office savings schemes and their unique advantages over other investment options.

Some popular post office savings schemes

  • Post Office Savings Account
  • Post Office Recurring Deposit Account (RD)
  • Post Office Time Deposit Account (TD)
  • Post Office Monthly Income Scheme Account (MIS)
  • Senior Citizen Savings Scheme (SCSS)
  • Public Provident Fund Account (PPF)
  • National Savings Certificates (NSC)
  • Kisan Vikas Patra (KVP)
  • Sukanya Samriddhi Accounts (SSA)
Unique advantages of post office savings schemes

Ease of operation

The various post office savings schemes are very easy to operate. They are highly suitable both for rural as well as urban investors. The ease of accessing them and operating them make them attractive options for people from all walks of life.

Simplicity and government support

All the post office savings schemes are simple in their nature without any need for cumbersome documentation. Since these are backed by the government, there are much safer than the other kinds of investment instruments.

Long term investment options

Some post office savings schemes like PPF (Public Provident Fund) are long term oriented. They are also forward looking to meet the retirement needs of the investors. Hence such schemes give room for pension and retirement planning.

Tax exemption

The majority of the post office savings schemes carry tax deductions under Section 80C for the amount deposited in them. The interest earned from savings schemes like PPF, Sukanya Samriddhi Account and SCSS enable for claiming tax exemption for the amount earned as interest through these investments.

High interest rates and risk-free nature

The interest rates in the various post office savings schemes range from 4% to 9% which is very attractive in many cases when compared to the interest rates offered by the different kinds of bank deposits. Since post office is an undertaking by the Government of India, the investments in them are safer as against investing in the private sector and even in some other kinds of banks.

Wide range of investment choices

Post offices offer a wide portfolio of investment options for different categories of investors and across different purposes of investments. Hence depending on their situation and need, the investors can choose the instrument that meets their needs and expectations.

Take away

The ultimate objective behind the various savings schemes operated by the government through post offices is to provide the citizens with safer and easier investment avenues. All these schemes are very easy to manage and the money invested in them is safe without being subjected to any kinds of risks whatsoever while letting the people achieve their financial goals in a much better way.
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