Have you ever thought about where to save your money? In which bank? Would it be safe? Well in India there are many types of banks as we all know private banks, government banks, central banks, etc. Which bank is safer and reliable.
The Postal office bank is the best and reliable because it is generated by Government and is present nationwide. This type of bank would generally be useful for unprivileged people who get access to save their money in a bank. All the saving schemes are genuinely done.
It is a long-term process with tax exemption in specific schemes. Tax exemption means if the bank gives interest we can show the money paid in the schemes in the Income-tax Department. There are many schemes NSC (National Savings Certificate, Senior Citizen Scheme, PPF (Public Savings Deposit), Sukanya Samriddhi Yojana, etc.
Current best schemes:
Recently the interest rates have been increased in these schemes for April- June 2021 Quarter was restored after initial interests. The schemes where the interest levels are leveled up are NSC, PPF and Sukanya Samriddhi Yojana (SSY) are good options. Let's see in detail
NSC decent chance:
National Saving Certificate is a 6 years scheme where the interest turnover occurs annually. As we can't predict when the interest rates would go up. For conservative investors, whoever is offered by the post office schemes gives peace of mind.
Now the interest rate for NSC is 6.8 percent, which gives a good turnover than a usual bank account that offers 6- 6.5 percent. To make it even more interesting, if you have an old tax regime, the tax benefits on initial investments up to 1.5 lakh and reinvest under 80C will give a higher yield.
In all the schemes you can save how much ever money you want in a month. There are no limitations.
Increasing rates in PPF and SSY:
Public Provident Fund is also a long-term investment with tax exemption. People can invest a maximum of 1.5 lakh. Now the PPF offers an interest of 7.1 percent, the main advantage is this value won't get lock into a rate, which means the interest rate for each quarter (3 months) applies to the entire balance in your PPF account.
So, if the interest rates move up the interest acquired throughout the PPF also increases.
Sukanya Samriddhi Yojana is especially for a girl child. This scheme is mainly recommended for fixed income if you are a parent or guardian below a 10-year girl child. The interest rate offered now is 7.6, which is the highest among all the schemes.
The turnover can be maximized up to 15 years, so your child gets matured and turns 21. Similar to PPF there is not lock into interest rate and enjoy tax exemption.
Personal Perspective:
As I said this postal office savings account is a deposit scheme throughout India that is easily accessible and provides a fixed rate of interest. This type of scheme would be very useful for everyone to saving money backed by a Government guarantee. Nowadays post office bank runs like a normal bank with all facilities
In India, our economy will be sustained by the way of small savings only. I suggest if a girl/ boy starts saving at PPF at age of 21, the money gets matured at age of 36.
Written By - Shreya Srinivasan
Edited By - Daniel Deepak Charles
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