Post Office Savings Account
One can relate this to a bank savings account. The difference is that you must visit the post office to open an account. Under this, even a minor may open his account. At a 4% rate, it generates interest.
Post Office Monthly Earnings Scheme
This plan spans up to five years, during which the deposit amount earns 7.4% monthly interest. Under this arrangement, the maximum limit in a joint account is Rs 15 lakh, and the minimum limit in a single holding account is at least Rs 1000. The account opened under this method can be moved from one post office to another around the nation. If the initial investment is removed between 1 to 3 years, then 2 percent of the investment has to be paid as a penalty, and if withdrawn after 3 years, then a 1 percent penalty has to be paid. You can prematurely cancel the account after one year.
Post Office Recurrent Deposit, or RD
Here, the annual interest rate is 6.7 percent. This plan spans up to five years. There is no upper limit of investment here; you may deposit up to Rs 100 every month. You must pay a penalty of Rs 1 for every Rs 100 should you miss depositing money into your account in any month. After one year, you could be able to take up to 50% of your investment.
Post Office Time Deposit
There is no upper limit; you can open your account with Rs 1000. 6.9 percent interest is provided on one-year investments, 7.0 percent on two years, 7.1 percent on three years, and 7.5 percent on investments up to five years. Likewise, the account can be moved from one post office to another.
Program for Senior Citizen Savings
In this saving plan designed for senior citizens, the minimum age for investing is fifty years. In this, one might open a joint account under his wife’s name in addition to an account under his name. One account should have no more than Rs 15 lakh in deposits overall. Its five-year maturity time is reasonable.
Kisan Vikas Patras
Compound interest is so accessible at an annual rate of 7.5 percent. In this sense, the investment doubles every 115 months. There is no maximum restriction here, and the minimal investment is Rs 1,000. You can invest under this plan for ten years.
Public Province Fund, or PPF
On a 15-year investment, it generates interest at a rate of 7.1 percent annually. Establishing an account with a minimum deposit of Rs 500 will be beneficial. It forbids opening a joint account there. To qualify for the advantages of this scheme, one does not have a minimum or maximum age limit.
