Post Office savings schemes are tailor-made and customer-oriented
Individuals irrespective of their age have to save money for a better future. Saving money is an age-old tradition in India where family members park their money in safe deposit vaults for future use.
In earlier days, there were very few options for a family to park their savings, so most of them kept their money in a safe confined to their homes or in banks where safe deposit vault was available to park their funds with round the clock security.
Later on, with the passage of time, the postal department introduced reliable savings schemes for the public to park and invest their savings for future use. To be precise postal department saving schemes are reliable and trustworthy.
They are safe and secure and they give good returns either monthly or annually. Most of the savings schemes carry a good rate of interest and are worth every penny.
There are several benefits of investing in a post office savings scheme.
Let us look at some of them in detail:
Safe and Secure
Post office deposit schemes are safe and secure. A person need not worry about his investment any time during the year and most of the deposit schemes give reasonable returns at an average rate of interest.
The money parked in a post office deposit scheme remains intact and is reimbursed along with the accumulated interest at the end of the maturity period.
There is a full-proof guarantee and you are assured of full and final payment as and when the scheme ends.
Carries a reasonable rate of interest
The rate of interest that applies to a deposit scheme is quite reasonable in some cases while it is even better for a certain period of maturity. Having a good rate of interest coupled with several years of maturity period is an indication of a healthy and robust investment scheme.
However, recently the rate of interest applicable to several schemes has been reduced and is changed every quarter as per the rules and regulations of the postal department.
Handsome returns are assured
A person investing in post office savings schemes is assured of good returns provided he or she has invested a hefty sum to be precise. Nowadays post office savings schemes have become a craze and most sought after investment options for the middle class and the rich alike.
Due to good returns, post office deposit schemes have encouraged every working-class citizen to invest and park their funds for future use.
Plenty of investment options on offer
There are various deposit schemes on the platter and an individual is not governed by rules and regulations but there is a limit a person can invest in a certain scheme. For instance, the senior citizen savings scheme has a limit of fifteen lacs per citizen above 60 years of age whereas the monthly income scheme has a limit of four lacs in a single account and nine lacs in a joint account.
Similarly, time deposits of 1, 2, 3, or 5-year duration have no limit whatsoever. So options galore as far as postal investment schemes are concerned and a person can plan carefully before taking the plunge.
Schemes are tax-free
Most of the schemes are exempt from tax under Section 80C. Since post office schemes are government-owned, an investor has the luxury to claim deduction under the above section for tax benefits. Interest earned is tax-free and the same can be availed while filing IT returns.
Investors avail the internet-banking facility
A post office customer can avail of the internet banking facility by submitting an application form duly signed and attested. Internet banking facility functions similarly to a normal banking facility and is useful to transfer funds and check balances.
With the help of such a facility, an investor can browse through all the deposit schemes in one go. there is also an ATM card attached to the facility and a person can withdraw funds from any of the ATMs nearby.
Internal Funds transfer becomes easy
With the internet banking facility, there is an opportunity to transfer funds internally from one branch to another branch. internal branch transfer is made easy and transparent and a person has to make sure he has sufficient funds to make the transfer.
Conclusion
Savings have a major role to play when we educate our kids or during old age. Healthy savings would secure your future and enable you to lead a comfortable life. Post office savings schemes have been around for several decades and the hunger and desire to invest and park funds in a secured environment has encouraged people of all classes to avail the facility without any second thoughts.