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9 risk-free investment options offered by Post Office

Are you planning to invest in traditional saving schemes or worried about investing in mutual funds? If you are new and do not want to take much risk, post office saving schemes are the best options for you. There are 9 saving schemes offered by the post office, with the features given below:

1. Post Office Saving Account

The post office saving account offers an interest rate of 4% per annum on the deposits, which are held by you or in joint name. You can open a saving account with a minimum deposit of INR 20. In case of non-cheque facility account, you have to maintain a minimum balance of INR 50.

2. 5-Year Post Office Recurring Deposit Account (RD)

The post office pays an interest 6.9% quarterly in its recurring deposit. Some post office agents also offer a rebate, if the amount of RD is deposited on annual basis. On maturity, an RD of INR 10 per month will fetch a return of INR 717.43 after five years. The account can be opened in multiples of INR 5.

3. Post Office Time Deposit Account (TD)

It is mandatory to open a post office saving account to apply for a term deposit. There are four different options of maturity periods: 1 year, 2 years, 3 years and 5 years. The interest ranges from 6.6% to 7.4% for a period up to 4 years. The interest is calculated quarterly but paid annually.

4. Post Office Monthly Income Scheme Account (MIS)

The post office MIS, with an interest rate of 7.4 per annum. The interest is payable on a monthly basis and the minimum investment is required is INR 1500 whereas the maximum limit is INR 4.5 lakhs in a single account and INR 9 lakhs in a joint account.

5. Senior Citizen Savings Scheme (SCSS)

This saving scheme offers an interest rate of 8.3% per annum on deposits. The deposit can be made one time only, with a maximum limit of 15 lakhs and should be in multiples of INR 1000.

6. 15 year Public Provident Fund Account (PPF)

The PPF earns an interest rate of 7.6 per annum, which is subject to change quarterly as per the announcements made by the Govt. The account can be opened with a minimum of INR 500 and can be made in 12 installments. However, it is recommended to deposit the amount before 5th of every month to achieve the benefit of interest for the present month.

7. National Savings Certificates (NSC)

NSC earns an interest rate of 7.6% per annum and is compounded annually. The minimum deposit is INR 100. An investment of INR 100 will return INR 144 on the maturity of five years. The deposit also qualifies for tax rebate of under Sec 80 C of the IT Act.

8. Kisan Vikas Patra (KVP)

The post office pays an interest of 7.3% on deposits in KVP. The scheme requires a minimum investment of INR 1000 and it multiples of INR 1000. There is no maximum limit to invest in the KVP. The amount in KVP doubles in 118 months.

9. Sukanya Samriddhi Accounts

The Sukanya Samriddhi saving scheme will fetch you an interest rate of 8.1%. This scheme is for the girl child and can be opened up to 10 years from D.O.B, however, the account can be closed after completion of 21 years, if needed.

The table offers a list of saving schemes (July-Sept 2018) offered by the Post Office along with the interest rates: http://www.shoprwise.com/9-risk-free-investment-options-offered-by-post-office/


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