Small Savings Schemes: Why are these 10 post office schemes popular among investors?

Post office savings schemes offer interest in the range of 4 to 8.2 percent per annum. The lowest rate of interest (i.e., 4 percent) is offered by post office savings account while the highest interest (of 8.2 percent) is offered by Sukanya Samriddhi Account.

MintGenie Team
First Published11 Jul 2024, 04:32 PM IST
Investment in small savings schemes is considered safe, and therefore constitutes debt portion of an investor’s portfolio
Investment in small savings schemes is considered safe, and therefore constitutes debt portion of an investor’s portfolio

Conservative investors tend to invest in safe investment options so that their investment remains protected while offering fixed return on investment at the same time.

Besides the traditional investment option of fixed deposits, retail investors can -- and often do – explore investing in small savings schemes. These are also known as post office savings schemes.

These investment products offer interest in the range of 4 to 8.2 percent per annum. The lowest rate of interest of 4 percent is offered by a post office savings account while the highest rate of 8.2 percent is offered by Sukanya Samriddhi Account.

Here we list out each of these products in detail:

I. Post Office Savings Account: This can be opened with a minimum 500 with no maximum deposit. Interest is calculated on the basis of minimum balance between 10th and end of the month.

II. National Savings Recurring Deposit Account: The National Savings Recurring Deposit account can be opened with a minimum investment of 100 or any amount in the multiples of 10. There is no maximum limit.

Also Read | Post office deposits: These risk-free schemes offer up to 7.5% return

III. National Savings Time Deposit: The National Savings Time Deposit Account is of one year, two years, three years and five years. The minimum amount for opening an account is 1,000 and multiple of 100 while there is no maximum limit.

IV. National Savings Monthly Income Account: The National Savings Monthly Income Account can be opened with a minimum investment of 1,000 while the maximum investment limit is 9 lakh in single account and 15 lakh in joint account.

V. Senior Citizens Savings Scheme Account: One is supposed to make only one deposit in the account in multiples of 1,000 while not exceeding 30 lakh.

These are the interest rates offered by different small savings schemes.

VI. Public Provident Fund Account: The minimum investment inPPFis 500 while the maximum is 1,50,000 in a financial year. These deposits can be made in lump-sum or in ​ instalments.

VII. Sukanya Samriddhi Account: Minimum deposit one can make is 25​0 and maximum is 1.5 lakh in a financial year. The subsequent deposits can be made in multiples of 50 and deposits can be made in lump-sum. There is no limit on the number of deposits either in a month or in a financial year.

Also Read | How to open Post Office MIS account offering 7.4% returns? A step-by-step guide

VIII. National Savings Certificate: The minimum investment in NSC of 1,000 can be made and in multiples of 100, while there is no maximum limit.

IX. Kisan Vikas Patra: The minimum investment of 1,000 can be made and in multiples of 100 with no maximum limit.

X. Mahila Samman Savings Certificate: One can make a minimum investment of 1,000 and multiple of 100 in Mahila Samman Savings Certificate with a maximum limit of 2 lakh in an account.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.

 

 

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First Published:11 Jul 2024, 04:32 PM IST
HomeMoneyPersonal FinanceSmall Savings Schemes: Why are these 10 post office schemes popular among investors?

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