Investing in Post Office Savings
If you are looking for safe and regular returns on your money, you may want to invest in post office savings schemes. While fixed deposits are safer but offer lower rates of interest than post office schemes, they do have some advantages. Here are some of them:
The Post Office of India offers a number of savings schemes to suit different investor grades and expectations. The types of investment schemes available depend on the investment horizon and tax implications. You may consider the five-year Post Office Recurring Deposit Account. Tax deductions are available on most Post Office savings schemes. Some schemes, however, do not offer any tax breaks. The Monthly Income Scheme is an exception. You will not receive a tax rebate on your savings, but it is a safe investment option.
You can invest as little as INR 10 in the Post Office Savings Scheme. You can invest an unlimited amount of money in this account. You can operate your account alone or jointly. If you live in a different state or city, you can transfer your account from one post office to another with ease. You can also take advantage of the rebate on six months’ instalments. The account can be prematurely closed after three years, but missed deposits incur a default fee. You may even opt for an extended RD account for another five years.
A PPF account is another form of Post Office Investment. A PPF account, or Public Provident Fund Account, is a tax-free way to save money and earn competitive interest rates. The government runs the PPF scheme through eight hundred public sector banks. You can invest a lump sum or a larger amount of money into one of these savings accounts, and it pays you a fixed interest rate. If you are thinking of retirement, this may be the best retirement plan for you.
If you are looking for a safe and lucrative way to earn income, a Post Office RD may be the right option for you. There are many benefits to investing in post office recurring deposits. The money you invest every month is compounded quarterly. In addition to monthly interest, post office RDs come with tax benefits. Depending on your needs, you can choose a 5 or 10-year tenor and receive 5.8% per annum.
The Post Office Monthly Income Scheme is another safe way to earn a consistent monthly income without exposing yourself to too much risk. Although the investment is safe, it is not widely known by urban Indian investors. Most people prefer debt and fixed deposits. Nevertheless, a Post Office FD offers a slew of advantages. Moreover, the Post Office is one of the largest banking service providers in the country. In addition, it is also one of the cheapest ways to earn consistent returns.
Another advantage of Post Office Time Deposits is that they are a tax deduction, so if you are interested in investing in one, consider it. A 5-year Post Office Time Deposit is tax-deductible. A Kisan Vikas Patra, on the other hand, offers 6.9% compounded interest rate and can be purchased at any Post Office branch. Your investment doubles every 124 months, so you’ll double your money. Moreover, these investments are easily transferable. You can transfer the certificate to another person if you need to.