Know all about the Post Office Savings Schemes
Post Office Savings Scheme: If you want a guaranteed return on your money, then Post Office schemes are right for you. Investments in Post Office schemes are backed by the government. Therefore, retired individuals show a greater interest in them. The government reviews the interest rates of these schemes every quarter. However, for investors who want higher returns on their investments, especially market-linked returns, investing in Post Office schemes is not advisable.
Senior Citizens’ Scheme: Retired individuals show great interest in the Senior Citizens’ Scheme. They receive interest on their investment on a quarterly basis. Many people invest in this scheme for a regular income, which helps them significantly in meeting their expenses after retirement. The terms and conditions of this scheme are simple.
The Post Office Monthly Income Scheme is ideal for those who want a regular monthly cash flow. If someone wants to receive money in their bank account every month after retirement, they can invest in the Post Office Monthly Income Scheme. Investments in this scheme are also completely secure.
PPF for Long-Term Investment: If you want to invest in a Post Office scheme for the long term, NSC and PPF are good options. NSC is suitable for those who don’t need liquidity for a few years and want a lump sum payment at maturity. PPF has long been a popular choice for long-term investments.
Investing in PPF for 15 Years: Your investment in the Public Provident Fund (PPF) matures in 15 years. The current interest rate is 7.1%. If you use the old income tax regime, you can claim deductions on your PPF investments. Those using the new tax regime do not receive any tax benefits on PPF investments. Experts say that PPF is suitable for those who do not want to take any risks with their investments.
Experts say that if you are willing to invest regularly for the long term and can tolerate some risk, you can get higher returns by investing in mutual funds instead of Post Office schemes. Young people and those in their 30s, in particular, can earn higher returns by investing in mutual funds. It has been observed that long-term investments are less affected by stock market fluctuations.
