The post office is one of the most reliable and popular financial institutions as laid by the government of India. The Indian post offices have gained much importance since the era of freedom. These are institutions where the common people have invested in different schemes for financial gains. Over the years the Post offices under the Indian government have come up with different schemes and investment plans that can be availed by people of every income bracket.
Let us take a look at some of the popular investment schemes and plans that have been fostered by the Post offices in India and have been popularly taken up by the people of the nation.
Here is a list of 5 best Post Office Saving Plans
Post Office Savings Account
These are accounts that can be opened by cash only. In case of a non cheque facility account, the minimum balance that has to be maintained is rs.50. If you need a cheque facility, then the minimum balance that has to be maintained is Rs. 500/-. An existing non cheque account can be upgraded to a cheque facilitated account. The interest generated will be free till the limit of Rs. 10, 000. You can nominate a person at the time of opening the account or even that. You can also transfer the account from one post office to another.
The account can be opened in the name of a minor; a minor of the age of ten can also operate the account. You can also open a joint account between two or three adults. You need to make at least one transaction in three years to keep the account alive. A single account can be changed into a joint account or even vice versa. An ATM facility is also available.
5 Year Post Office Recurring Deposit Account
The account can be opened with either cash and also by cheque. The feature of nomination can be done at the time of opening the account or even after that. The account can be transferred from one post office to another. You can open more than one such account in a post office. Accounts can be opened in the name of a minor. A minor who is of the age of ten or more can also operate the accounts. Two adults can open joint accounts.
If the account is opened on or before the 15th of the month, then subsequent payments need to be done by the 15th of the next month. If the payment is not made on the mentioned date, then a default fee is levied on the holder of the account. A single account can be changed into a joint account and also the other way round.
Post Office Time Deposit Account
These accounts have to be opened by an individual. Such accounts can be opened by cash or even cheques. In case the accounts opened through cheque then the date of realization of the cheque will be taken to be the date when the account is opened. Nominations can be done at the time of opening the account or even after that. Such accounts can be easily transferred from one post office to another.
An individual can open more than one such account in a post office. Joint accounts can be opened by two adults. Minors can also open these accounts. Minors of the age of ten can also operate these accounts. Joint accounts can be converted into single accounts and also the other way round. Minors after becoming adults have to apply for a conversion of the account. Once the TD account matures, it will get renewed for the same period.
Post Office Monthly Income Scheme Account
These accounts can be opened by individuals. Such accounts can be opened through cash and also through cheque. Nominations of such accounts can be done at the time of opening the accounts or even later. Such Post office accounts can be transferred from one account to another. An individual can open more than one account in a post office.
Such accounts can be opened in the names of minors, and minor of the age of ten can operate them easily. Two or three adults can open joint accounts. Holders of such joint accounts have equal shares in such accounts. Joint accounts can be converted to single accounts and vice versa. Minors on becoming adults need to apply for conversion of accounts. The maturity period of such accounts is five years.
Senior Citizen Savings Scheme
Individuals over the age of 60 years can open such accounts. Individuals over the age of 55 but below 60 years if have attained a VRS can also open these accounts. The maturity period of such accounts is five years. A depositor can operate the accounts single-handedly or even jointly with his spouse. Such accounts can be opened with a sum of Rs 1 lakh cash. If more amounts are to be given, then a cheque is to be used.
Advice from experts can also be taken so that the best benefits can be attained from the different schemes of Post Office. Reading of documents carefully is a mandatory and careful analysis must be done.