The post office offers great investing policies to civilians. You can also call these instruments or policies small saving schemes. The unique selling point of these policies is that they are backed by the central government. It means they facilitate sovereign guarantees.
The major problem with the Indian Post Office schemes is that people are not aware of the benefits it reaps to them. Moreover, they don’t have sufficient knowledge regarding the requirements and conditions of such policies. So I am here with an article on the Indian post office schemes to discuss a few schemes that will reap you the highest return on investment. These policies are a very safe form of investment, unlike other volatile investment options.
#1. Public Provident Fund (PPF)
This scheme is a perfect investment avenue that delivers excellent returns under the exempt-exempt-exempt (EEE) tax status. It simply means that whatever you earned as a maturity amount is completely tax-free. It is one of the best-fixed deposit schemes in the Indian post office.
The rate of interest is 7.1% per annum. Don’t you think it seems to be a very profitable investment with such an attractive rate of return? A minimum amount of INR 500/- is needed to start the scheme, and you can deposit up to INR 1,50,000/- in one financial year. You can deposit the money in installments. There is no limit on the number of installments in which you can deposit.
Who Can Open the Account?
Any Indian resident adult can open an account. Moreover, one can also open an account on behalf of the minor or unsound person. You can open only one account either in the bank or post office across the country.
One can even avail of the facility of loan on behalf of this scheme. You can take a loan after the expiry of one financial year from the date of opening of the account. The loaning amount depends upon the credit amount at the end of the second year preceding the year of the loan applied. You can take a loan once a year. The maturity period of this scheme is 15 financial years. You can also extend your scheme for further 5 years. You can also withdraw some amount once a year after the completion of 5 years of account opening. Also, You can close your account before maturity and withdraw your funds. You can do it only after 5 years from the date of opening your account.
Only in case of- account holder/spouse / dependent children are suffering from many life-threatening diseases, need funds for the higher education of above mentioned, change in the residential status of the account holder.
Interests will be credited to your account at the end of every financial year. Interest earned will be completely tax-free.
#2. Sukanya Samriddhi Yojana (SSY)
The scheme is under the umbrella of the ‘Beti Bachao Beti Padhao’ campaign and it is one of the best Indian Post Office schemes for money investment. The most unique feature that differentiates this policy from others is the exempt-exempt-exempt (EEE) tax status. It is the best Indian post office scheme to plan the future of your girl.
The rate of interest on the scheme is 7.65% per annum, which is quite attractive. Moreover, you do not need a huge budget to take the advantage of this scheme. A minimum amount with which you can start investing is INR 250/- and can go on up to INR 1,50,000/- within one financial year. You can deposit money in as many installments as you want in a month or financial year. There are no deposit limits.
Who Can Open the Account?
Any guardian in the name of the child below the age of 10 years can open the account. However, you can open only one account either in a post office or in any bank in the name of that particular girl. A maximum of two accounts is allowed in one family.
How Long Can You Deposit the Money?
You can deposit the money only 15 years from the date of opening the account. You can close the scheme only after 21 years from the date of opening an account or at the time of marriage of the girl child any time after 18 years.
Interest is credited to your account at the end of every financial year. You can withdraw money once the girl attains 18 years of age or successfully passed 10 standards. If you are thinking of prematurely closing the account, then yes, you can also do that. But only after the 5 years of the date of opening of the account, you can prematurely close it.
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These two policies are the Best Indian Post Office Schemes For Money Investment reap the highest rates of return on investment. However, there are many more schemes from the Indian post office that offer you lucrative investment opportunities. Everyone should take advantage of the policies facilitated by the central government.
The main difference between the post office schemes and other financial institution schemes is the investment amount. No other schemes except the ones from the post office ones can facilitate investing with as low an amount as INR 250/- but the post office permits. So start investing today to make your tomorrow better.