The Post office Saving scheme 2020 is launched by the Department of the post under the Ministry of Communication of Government of India. The scheme carries less risk when compared to many other investment options. This saving scheme is spread across different types of savings and different products of investments to able to cater to various investors. There are financial products available like saving deposits, fixed deposits, monthly schemes, etc. Investors choose from these financial products according to their financial goals.
Indian post who controls the services of the postal chain of the country provides several deposit avenues for investors which are known as post office saving schemes 2020. The scheme is initiated to provide avenues for investment and inculcates saving discipline among the citizens of India from various economic classes. Every post office provides a saving scheme to individuals across India to apply and enroll in the schemes easily. Minimum documentation and simple procedure make it easier to apply for the saving schemes.
DIFFERENT TYPES OF SAVINGS (POST OFFICE SAVING SCHEME 2020)
The different types of savings which Indian Postal offers for investment to general masses are listed below-
PUBLIC PROVIDENT FUND (PPF)
A preferable scheme with a lock-in period of 15 years. Partial withdrawal can be done by the investor after a period of 5 years. The deposit of rupees 500 is required to keep the account active.
NATIONAL SAVINGS CERTIFICATE (NSC)
Investment in this of a small amount of rupees 100 as a single individual. The lock-in period of time is 5 years. The annual interest on it is re-invested and paid as an accumulated amount at the time of maturity.
POST OFFICE MONTHLY INCOME SCHEME
It’s a reliable saving instrument that allows investing the maximum amount of 4.5 lakhs of rupees as individually and 9 lakh of rupees as jointly. The scheme enables investors to generate a steady monthly income.
SUKANYA SAMRIDHI SCHEME
Parents or guardians of any girl child who is up to 10 years of age are eligible to open the account on the child’s name. The maximum of 2 accounts can be opened from a family who has two daughters. The account opened will be separate from both daughters. At the age of 21 years, daughters will be eligible to withdraw the maturity amount.
SENIOR CITIZENS SAVING SCHEME
Investors whose age is 55 or 60 years can deposit up to 15 lakhs of rupees over their lifetime to gain regular interest income. The lock-in period is of 5 years of the plan.
POST OFFICE SAVINGS ACCOUNT
It can be opened with the deposit of a small amount of rupees 20 and should be maintained with the minimum amount of rupees 50. The post also allows transferring the money from your account through online mode.
KISAN VIKAS PATRA
It allows earning double the amount in nine years and ten months. The deposit can be encashed only after 2.5 years against the payment of nominal petty.
BENEFITS OF POST OFFICE SCHEMES (POST OFFICE SAVING SCHEME 2020)
It does not involve any risk and is reliable. The risk-free investment options are considered for funds.
It includes an attractive generation of returns and updates the interest rates of saving schemes every 3 months. Interest rate update ranges from 4 to 9% which enables investors to receive substantial returns.
It’s a simple process of investment with minimum documents required and a simple procedure of application.
It allows long-term investments which can be there for 15 years. Investors accumulate sizeable funds over this long period of time.
Some schemes like Kisan Vikas Patra offers a tax deduction on the earned interest.
It’s an easier form of investment.
HOW TO APPLY FOR THE SCHEME? (POST OFFICE SAVING SCHEME 2020)
Applying for the scheme, one should follow the below-given steps-
Visit preferred close post office branch.
Obtain the form for opening the account under the relevant scheme and form can also be obtained from the official website of the post office.
Fill the form with all the important details along with your Aadhaar card and photograph and all the other required documents.
Complete the application by depositing the required amount of money according to the scheme.
ELIGIBILITY AND REQUIRED DOCUMENTS
- Applicant must be a citizen of India.
- Aadhar card is required
- Pan card
- Photographs passport size
- Mobile number
- Residence proof
FEATURES OF THE SCHEME
• They are government-backed schemes, almost all the post office savings schemes.
• Interest rates are updated every 3 months of time by the Finance ministry.
• There is efficiency in tax under the scheme.
• There is a provision of exempting the tax which is made to the investor.
• Post office saving schemes have long term investments up to a time period of 15 years.
• Postal investments are designed in such a way that it covers almost all the investors from every corner of India.