Are Post Office Savings Schemes Worth Investing In? Here's a Look

Amid uncertain market conditions, Indians are flocking to post-office investment schemes. Notably, people are resorting to India Post’s small savings schemes due to its accessibility and significant returns

Here’s a look at various savings and investment instruments that are offered by the post office.

Savings Account

People who are looking forward to low-risk and consistent interest-bearing options, can opt for a Post Office Savings Account. It offers an interest rate of 4% on an annual basis, while requiring only a minimum balance of only ₹500. Individuals, joint account holders, and minors above 10 years are all eligible to open the account under this scheme.

Recurring Deposit

Popular especially among middle-income households, the 5-Year Recurring Deposit (RD) scheme facilitates building a strong corpus via monthly savings. It offers an annual interest of 6.7%. Investors can start their investment with just over ₹100.

While defaults invite minimal penalties, account holders can take a loan of up to 50% of their deposits, provided their account crosses 12 months.

Public Provident Fund

Long-term investors can bank on the Public Provident Fund (PPF). It offers an interest rate of 7.1%, requiring a minimal deposit of just ₹500, up to a maximum of ₹1.5 lakh.

With a lock-in period of 15 years, all returns are exempt from tax.