One would not want to choose to invest in post office schemes because of its non-core banking services, non-digitalization of documents, the reduced interest rate advantage and lack of competitive advantage. Let's get details on the same.
Post office department has been the pillar of small savings in India. With a total investment base of about 6 lac crores, they are one of the biggest deposit mobilizers in Indian banking sector. While traditionally Post office schemes enjoyed huge popularity due to round the corner presence , local trust and the fact that they offered slightly higher returns than similar schemes from banks but they have not at all kept pace with improvements in banking services and customer facilities. Here are 5 reasons why I do not recommend investing in post office schemes
Most of the post offices are still not on Core banking platform as a result whatever investments or savings you park with them stay with the local branch. For any changes, pre-mature withdrawals etc you need to go the branch where you opened the account or made the investments
NSC ( national saving certificates or KVP ( Kisan visas patra) etc all these investment documents are given in the physical form. In the case of theft or damage or lost of the physical document, Its not very easy getting records updated and in general who keeps all these physical documents.
One of the traditional advantages of Post office schemes was they enjoyed higher spread and hence interest rates were 50 bps to 100 bps more than similar products from banks that gap has come down now
Post office staff is not the most friendly staff you will encounter around certainly something which needs massive makeover
In my parents time there were limited financial products and as a result, some of the post office schemes were very popular for example if you wanted to save taxes Kisan Vikas Patra or the NSC were most important schemes .Now there are many more options available in the market both on debt and equity side. Also with increased distribution power of banks, they are distributing mutual funds and lot of other products as a result post office schemes no longer remain very attractive.
Public Provident Fund Scheme is a saving scheme that comes with tax benefits. Ministry of Finance introduced this scheme in the year 1968. The main objective of PPF is to encourage general people to mobilize their small savings. The interest offered on these schemes are not taxable. Precisely, PPF is an investment with non-taxable returns.
The Government of India has been on the forefront of giving schemes for the Girl Child in India. Are there any post office saving schemes for the boy child in India? I was looking at Ponmagan Podhuvaippu Nidhi Scheme but it seems that the scheme is available only in Tamil Nadu Post Office.
Navigating the huge selection of investing possibilities can be a difficult chore for middle-class people.There are a lot of options, ranging from mutual funds and fixed deposits to the National Pension System. This will give middle-class Indians a thorough insight to the finest investing strategies.
Liquid funds, a type of mutual funds which invest in different money market instruments. The withdrawals from these funds are processed within 24 hours and that's why these are regarded as liquid assets. The fund manager gets flexibility to meet immediate redemption requests.
There are several investment plans such as FD, Post office Monthly Savings Scheme, Government Bonds, Mutual Fund Monthly Income Plans. These can provide you with a very good monthly income.
Several monthly income plans available such as senior citizen fixed deposit, senior citizen savings scheme, post office monthly income scheme, tax-free bonds, debt funds, and many more are the best monthly income place for senior citizens in India.
For a salaried class, there are many places where investments done. Know the best investment options for salaried person in India. The best investment options for a salaried person are Gold investments, PPF account, national pension scheme, ELSS, and fixed deposits.
The various schemes that can be used for saving up on taxes are all the plans listed under Section 80C of our income tax slabs. The deduction can be placed for medical insurance claims, education loan interest, house loans, and so on.
Whenever we talk about retirement corpus, Employee Provident Fund and Public Provident Fund come to our mind. These schemes are meant for long-term savings and support our after retirement plans. These instruments are known to be secure & steady with guaranteed earnings. You can start with small savings and end up with significant retirement corpus!
Yes , NRI can invest in Mutual Funds in Zerodha by opening a non-PIS account. However, there are restrictions for NRI investors with PIS accounts, as well as investors based in the US and Canada; they are not permitted to invest in mutual funds in Zerodha.