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Post office savings schemes offer one of the best investment avenues to conservative investors.

This includes Senior Citizen Savings Scheme, Sukanya Samridhi Yojana, fixed deposits (FDs) and recurring deposits (Rds) among others.

In comparison to banks, post office savings schemes offer a higher interest rate, which makes them a preferred investment option.

Benefits

Your investments are secure since the government of India takes sovereign guarantee of the money parked in these schemes. These services are also available online. Besides, government has also launched India Post Payments Bank, which makes banking services available to the subscribers.

Higher return than banks

Post office FDs and RDs give higher return than banks. Post office FDs are also known as National Saving Time Deposit account. The minimum investment amount is Rs 1,000 and can be increased in the multiples of Rs 100 without an upper limit.

6.7% interest on 5-year term deposit

Term deposits for 1 year, 2 years, 3 years and 5 years will fetch you 5.5% interest to the subscribers, while for a 5 year tenure, it is 6.7%.

Benefits of RD account

RD account for a 5-year tenure can be opened with a post office. Minimum investment amount is fixed at Rs 100 per month and can be increased in multiples of Rs 10. There is no maximum limit. Presently, a 5-year recurring deposit fetches 5.8% interest compounded quarterly.