different savings schemes in banks and post offices in india, what is saving, sources of savings, types of bank accounts/deposits

1. S H R E YA S H A H
P R IYA N K A
A D AT E
PA L L AV I PAWA R

2. WHAT IS SAVING?
Saving is income not spent, or
deferred consumption. Methods of saving
include putting money aside in, for example,
a deposit account, a pension account,
an investment fund, or as cash.
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3. SOURCES OF SAVINGS
1. Household Savings
a) Physical Assets
b) Financial Assets
c) The Unaccounted Savings of the Household Sector
2. Government Savings
3. Private Corporate Savings
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4. Where you
can save?
Post
offices
Banks
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5. POST OFFICE SCHEMES
1. Post Office Savings Account
2. 5-Year Post Office Recurring Deposit Account
3. Post Office Time Deposit Account
4. Post Office Monthly Income Account Scheme
5. Senior Citizen Savings Scheme
6. 15- Year Public Provident Fund Account
7. National Savings Certificates (NSC)
8. Kisan Vikas Patra (KVP)
9. Sukanya Samriddhi Accounts
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6. POST OFFICE TIME DEPOSIT ACCOUNT
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These accounts are meant for
those investors who want to
deposit a lump sum for a fixed
period. Time deposits are of 1 year,
2 years 3 years and 5 years
tenures. Minimum investment
should be Rs.200 and its multiples.
The account can be closed after 6
months but before 1 year of
opening the account. On such
closure, the amount invested is
returned with interest.

7. SENIOR CITIZENS SAVINGS SCHEME
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This saving scheme option is
exclusive to senior citizens in India.
Ideally, the applicant must be 60
years or more but those between
the ages of 55-60 years, are retired
or have opted for VRS (Voluntary
Retirement Services), can also
apply, provided that the account is
opened within one month of the
receipt of their retirement benefits.

8. NATIONAL SAVINGS CERTIFICATE
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It is an attractive combination of interest rate, safe investment
avenue and tax benefits. These are investment tools that can
help investors get returns on the money invested and also get
benefits in their taxable incomes. Once you choose to invest in
NSC, it earns and interest rate based on the rates associated
with the type of certificate bought. The maturity date for these
certificates is set to 5 or 10 years from the date of purchase but
the interest is calculated on a yearly basis.

9. PUBLIC PROVIDENT FUND ACCOUNT
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Public Provident Fund (PPF)
scheme is a popular long term
investment option backed by the
Government of India which offers
safety with attractive interest rate
and returns that are fully exempted
from Tax. Investors can invest
minimum Rs.500 to maximum
Rs.1,50,000 in one financial year
and can get the facilities such as
loan, withdrawal and extension of
account.

10. KISAN VIKAS PATRA
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First launched in 1988, the Kisan
Vikas Patra (KVP) is one of the
premier and popular saving
scheme offering from the Indian
Postal Department. This product
has had a much cheered history-
initially successful, deemed a
product that could be misused and
thus terminated in 2011, followed
by a triumphant return to
prominence and popular
consumption in 2014.

11. SUKANYA SAMRIDDHI ACCOUNTS
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A premier saving scheme offering
from the Indian Ministry of Finance,
the Sukanya Samriddhi Yojana
(SSY) Accounts are aimed at
ensuring a bright future for the girl
children in India. This ambitious and
resourceful scheme was launched by
the honorable Prime Minister of
India, Mr. Narendra Modi, and has
quickly emerged as a popular
savings scheme that aims to provide
financial backing for a girl child’s
varied, lifelong aspirations.

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14. TYPES OF BANK ACCOUNTS
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1. Current Deposits/Accounts
2. Saving Accounts/ Saving Fund Deposits
3. Recurring Deposits/Accounts
4. Fixed Deposits/Term Deposits

15. CURRENT ACCOUNTS /DEPOSITS
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Current Accounts are basically meant for
businessmen and are never used for the
purpose of investment or savings. These
deposits are the most liquid deposits and
there are no limits for number of
transactions or the amount of transactions in
a day. Cheque book facility is provided and
the account holder can deposit all types of
the cheques and drafts in their name or
endorsed in their favour by third parties. No
interest is paid by banks on these
accounts. On the other hand, a bank
charges certain service charges, on such
accounts.

16. SAVINGS ACCOUNTS /DEPOSITS
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These deposits accounts are one of the most
popular deposits for individual accounts. These
accounts not only provide cheque facility but also
have lot of flexibility for deposits and withdrawal of
funds from the account. Most of the banks have
rules for the maximum number of withdrawals in a
period and the maximum amount of withdrawal,
but hardly any bank enforces these. However,
banks have every right to enforce such restrictions
if it is felt that the account is being misused as a
current account.

17. RECURRING ACCOUNTS /DEPOSITS
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These are popularly known as RD
accounts and are special kind of Term
Deposits and are suitable for people
who do not have lump sum amount of
savings, but are ready to save a small
amount every month. Normally, such
deposits earn interest on the amount
already deposited (through monthly
installments) at the same rates as are
applicable for Fixed Deposits / Term
Deposits. These are best if you wish to
create a fund for your child's education
or marriage of your daughter or buy a
car without loans or save for the future.

18. FIXED DEPOSITS
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All Banks in India offer fixed deposits
schemes with a wide range of tenures for
periods from 7 days to 10 years. These
are also popularly known as FD
accounts. The term "fixed" in Fixed
Deposits (FD) denotes the period of
maturity or tenor. Therefore, the
depositors are supposed to continue
such Fixed Deposits for the length of time
for which the depositor decides to keep
the money with the bank. However, in
case of need, the depositor can ask for
closing (or breaking) the fixed deposit
prematurely by paying a penalty

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