What are the benefits of Post Office Savings?

India Post is the most widely distributed postal system in the world. When it was established in 1854, its main purpose was to deliver and collect mails. Now India post is doing all the financial works from savings bank account to insurance. And above all you can get Gangajal from post office nowadays.

Other than logistics, post office is famous for its savings scheme. Following are the savings scheme in India Post:-

• Post Office Regular Savings account.
• Post Office time deposit account.
• Post Office recurring deposit account.
• Post Office monthly income deposit account (MIS).
• Public Provident Fund account (PPF).
• Sukanya Samriddhi Yojana Account (SSY).
• Kisan Vikas Patra (KVP).
• National Savings Certificate (NSC).
• Senior Citizen savings scheme.

Post office savings accounts are as same as bank accounts. But the main difference is you can open a savings account with a minimum of 100 Rs and minimum balance required is 50 Rs only. But the upper limit per account is 1 lakh Rs. if it is a joint account than you can deposit up to 2 lakhs. More than that you can transfer the account to any other post office without changing the account number. SMS alert and ATM withdrawals are free in post office savings.

Apart from the usual SB, RD, TD accounts post Office has wonderful bonds and certificate schemes which are quite popular and risk free method of fund acquisition.

• In Kisan Vikas Patra (KVP) - KVP is a certificate or bond issued by post office. Each certificate worth Rs 1000. You can buy KVP certificates from post offices in minimum of Rs 1000 and multiples of Rs 1000. There is no upper limit for purchasing of KVPs. The rate of compound interest is 7.3% and the amount multiplies in 9 and half years. Certificate can be encashed after 2 and half years.

Another very good saving scheme in post office is National Savings Certificates. In older times people preferred National Savings Certificate than the fixed deposits of banks. Because,

• one cannot withdraw National Savings Certificate before the matured period. As there is a locking period of 55 years.
• The returns are more than any other financial institutions' returns. Interest rate at present is 7.6%. Compound interests are calculated annually but will be given after 5 years only.
• Tax exemption is there.
• Transfer of certificate from one person to another is possible once.

Go and explore the world's largest mail distributing offices and multiply your hard earned money with the help of secured hands.