Post Office Saving Schemes by India Post- a government-backed organization, are amongst  the most popular savings and investment schemes in the country. These schemes are available  across all the post offices in the country i.e., more than 1.5 lacs, making it accessible to the  urban as well as rural populations.   

Types of Post Office Saving Schemes  

Post Office Savings Account  

A Post Office Savings Account is similar to a savings account with a Bank. Just like in the case  of a bank savings account, the Post Office savings account is also highly liquid as one can  withdraw any time as per his needs. These accounts are ideal for parking savings that may be  required on short notice just like we do with the bank saving account.  

Post Office Recurring Deposit (RD) Account  

This is the 5 Year Recurring Deposit Account which lets you make deposits with small fixed  monthly instalments. It is one of the best ways to create a corpus by developing the habit of  saving every month. Loan of up to 50% balance is allowed after one year and needs to be paid  back through one-shot payment with the applicable interest rates.  

Post Office Time Deposit Account  

Post Office Time deposits are the Fixed deposits which are offered for the tenures of 1,2,3 & 5  years. These deposits provide higher interest rates than the other savings accounts and are ideal  for parking idle savings for the time as per needs. There is a tax benefit on time deposits made  for 5 years, one can claim tax deductions up to Rs.1.5 lacs on the deposited amount under  section 80C of Income Tax Act,1961.  

Post Office Monthly Income Account  

Post Office Monthly Income is a scheme that offers fixed monthly income or interest to the  individual on a lump-sum investment. This scheme is extremely helpful for individuals who  want regular & steady income. An individual (individual or included in a joint account) can  invest a maximum of Rs.4.5Lac in one go.  

Senior Citizens Savings Scheme Account 

Senior Citizens Savings Scheme (SCSS) is an initiative by the government of India for ensuring  the financial security of senior citizens. It can be started by anyone above the age of 60 years  or a retired defence employee above the age of 50 and comes with a lock-in or maturity period  of 5 years. In this scheme, the individual must deposit a single payment at the beginning, then  for the next 5 years he will receive quarterly interest payments on his deposits and deposit at  the maturity.  

Public Provident Fund Account   

Public Provident Funds are long tenure investment products, i.e., they come with a lock-in  period of 15 years which can be extended further for 5 years. These are one of the best  investment products for creating a desired corpus over a long period. One can choose to pay in  a single payment every year or can make monthly instalment deposits  

National Savings Certificates (NSC) Account  

National Savings Certificates is a scheme backed by the government to incentivize individuals  with lower incomes to make investments. The NSC can be availed from post offices across the  country. It is ideal for small savings & investments.  

Kisan Vikas Patra (KVP) Account  

Kisan Vikas Patra is a small savings scheme that doubles your investment amount in specific  months, currently i.e., 124 months. This scheme is ideal for making long term investments for  meeting your financial goals along with zero risks associated.  

Sukanya Samriddhi Account  

Sukanya Samriddhi Yojana is a scheme specially made for girl children. This scheme has been  made for encouraging savings by parents/guardians to meet their girl child’s education and  marriage expenses. Parents can open an account before their girl turns 10. The scheme is  applicable for 21 years after the opening of the account or until she gets married after turning  18.  

These schemes provide high-interest rates on deposits and carry zero risk as they are guaranteed  by the Indian Government. Some of the schemes by India Post also provide tax benefits under  Section 80C of Income Tax Act,1961. 

Important links – 

1.https://www.hdfcbank.com/personal/resources/learning-centre/save/current-account-vs-savings-account-know-the-difference 

2.https://www.bankbazaar.com/saving-schemes/post-office-savings-account.html