Post Office India: Four saving schemes you need to know

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India Post is largely synonymous with postal services across the country. However, it also offers many savings schemes.

Some of the saving schemes offered by India Post under Post Office Saving Schemes are very customer-friendly. One can open a bank account with India Post by visiting the nearest post office branch. The minimum amount required to open these accounts is Rs 500.

Out of 9 current saving schemes, Money9 lists 4 important schemes that you must know about.

1. Public Provident Fund (PPF)

It is easily the most popular saving scheme offered by India Post. A PPF account matures in 15 years and the current rate of interest offered on the same is 7.1 per cent. This rate gets compounded on a yearly basis. However, premature closure of PPF account is also allowed after 5 years since inception. Minimum deposit of Rs 500 every year is mandatory to keep the account active. Deposits in the PPF account can be made in lump-sum or instalments.

2. Senior Citizens Savings Scheme (SCSS)

As the name suggests, India Post offers this scheme exclusively for senior citizens. Any Indian citizen who has attained the age of 60 can deposit up to Rs 15 lakhs in a SCSS account. It offers regular interests (7.4 per cent per annum) and has a lock-in period of 5 years. It is a preferable scheme amongst the elderly.

3. Kisan Vikas Patra (KVP)

An account under KVP scheme can be made with initial deposit of Rs 1000 while there is no maximum limit to invest in this scheme. Interest rate offered here is 6.9 per cent. This scheme matures in 124 months.

4. National Savings Certificate (NSC)

NSC scheme has a lock-in period of 5 years and requires Rs 1000 to open an account under it. Interest rate of 6.8 per cent is offered which compounds annually, however, payable only during maturity. There is no maximum limit of investment required run this account.