Postal Saving Schemes - PPF, NSC, Postal Life Insurance and Deposits

India has a very organized and well maintained postal network with post offices in even small villages. Postal Department offers many basic services like delivering letters, parcels, registers, money orders and advanced services like instant money order, speed post, express delivery and other services like bill collection. Recently they revamped the speed post with uniform rate called one India one rate scheme. Apart from these services they offer many financial services called Postal Saving Schemes

Public Provident Fund : Public Provident Fund or PPF is a safe investment method in India. Minimum deposit in a year is Rs500 and maximum is Rs70,000. Tenure of the deposit is for 16 years relative long compared to other type of investments. PPF deposits are eligible for income tax rebate. Loan is available on PPF from the third year onwards.

National Saving Certificate : National Saving Certificate of NSC is another popular and safe investment option. Maturity period of NSC is 6 years compared to 16 in PPF.

Savings Bank Account : Like any other public and private sector banks Postal department also offers Savings bank account. Account can be either single or joint. Minimum amount is Rs 20 and maximum is Rs 1,00,000 for individual account and Rs 2,00,000 is the maximum limit for joint accounts.

Monthly Income Scheme : Postal department's Monthly Income Scheme is very popular especially among retired employees and senior citizens. Maturity period is 6 years. For individual account minimum amount is Rs 1000 and maximum is Rs 3,00,000. For a joint account minimum is Rs 1000 and maximum is Rs 6,00,000.

Recurring Deposit : This is another deposit scheme offered by Indianpost. Tenure is 5 years and minimum monthly deposit is Rs 10 and no maximum limit. Tax rebate is available on interest earned as per income tax laws.

Kisan Vikas Patra : Kissan Vikas Patra is available in denominations of Rs 100, Rs 500, Rs 1000, Rs 5000, Rs 10,000 and Rs 50,000. It is another safe investment with good returns.

Time Deposit : Post Office Time Deposit is like a bank Fixed Deposit. Minimum investment is Rs 50. No maximum limit. Money can be deposited for 1, 2, 3 or 5 years. Time deposit may be opened by individual or as a joint account.

Postal Life Insurance : Postal Life insurance is a very good insurance option offered by Postal Department of India. There are many advantages like it is fully supported by Govt of India, low premium, high bonus, income tax rebate, payment of premium at post offices etc. Many schemes are available under postal life insurance like Santosh, Suraksha, Suvidha, Sumangal and Yugal Suraksha.

There is also schemes available under Rural Postal Life Insurance for rural areas like Gram Santosh, Gram Suraksha, Gram Suvidha, Gram Sumangal and Gram Priya.