For a long time now, post offices of India have been offering investment schemes for personal, small-scale finance. Risk-free and stable, these post office schemes are very much preferred by the elderly, as they find such investment options reliable.
The Post Department of India offers several types of investment schemes listed under, such as-
These schemes have different rates of interest as well as different maturity periods. Premature withdrawal is allowed on most schemes. The conditions on premature withdrawal or closure in the schemes are-
In the case of Post Office Savings Account, premature withdrawal is allowed after one year of opening the account.
For Post Office Recurring Deposit Account, the tenure is 5 years. However, after one year, a withdrawal of about 50% of the balance can be made. In case of the death of the subscriber, full maturity value can be received by the nominee if he or she is able to fulfil certain conditions.
Senior Citizens Savings Scheme has a maturity period of 5 years. Premature closure is allowed after 1 year. In that case, however, there is a 1.5% deduction of the deposit.
The Post Office Monthly Income Scheme, too, takes 5 years to mature. You can prematurely en-cash the account after 1 year but upon a deduction of 2% of the deposit.
The Public Provident Fund Account takes 15 years to mature. Premature closure is not allowed. However, one withdrawal can be made every year after the completion of 7 years of the account.
The Kishan Vikash Patra scheme allows the certificate to be cashed after two and a half years of issuing it.
In the case of Sukanya Samriddhi Accounts, the account can be closed after 21 years. Partial withdrawal of about 50% of the deposit is allowed after the girl child is of 18 years. Premature closure can also be made after the child reaches 18 years of age, but only in case of marriage or higher education.
The NSC takes 5 years to mature. Premature closure or withdrawal is not allowed.