K. ARAVIND
When everything is online, how can post offices alone not be part of it? Although there are post offices in every nook and corner of the country, the financial services provided by the Postal Department have been linked to the Internet for greater convenience. It is possible to invest in the financial products of the Postal Department without visiting the Post Office branches.
Financial services such as Post Office Savings Account, Recurring Deposit Account, Public Provident Fund (PPF), Time Deposit and National Savings Certificate (NSC) are available through the Postal Bank’s Internet Banking. You can access account information, see transaction details and transfer money to other postal department accounts through the Internet. Investments in PPFs and recurring deposits can also be handled online.
There is no need to go to the branches to deposit, partially withdraw and reinvest in recurring deposit. It is also possible to withdraw investment from PPF, borrow, repay and reinvest through Internet. If you want to withdraw money from PPF, you can complete the procedures online. The investor will know the amount that can be withdrawn after logging in through internet banking.
In order to avail internet banking services, the account holder has to enter his e-mail address, PAN number, mobile number and maternal name. This information must be provided with the application for access to Internet banking services. The application form is available on the website of IndiaPost.
Those in rural areas are more likely to rely on post office and banking services. Since the launch of internet banking last year, more and more investors in cities have started investing in post office savings schemes.
One of the reasons why a section of the urban population is reluctant to invest in these is that they have to visit the Post Office branch to make every transaction. With the advent of internet banking, more and more people are attracted to post office savings schemes which offer higher interest rates than banks.
Public Provident Fund – 7.1 per cent, National Savings Certificate – 6.8 per cent, Sukanya Samridhi Yojana – 7.6 per cent, Kisan Vikas Patra – 6.9 per cent and Senior Citizen Savings Scheme – 7.4 per cent.
The interest rate on term deposits of one to five years ranges from 5.5 per cent to 6.7 per cent. The interest rate on a five-year fixed deposit is 6.7 per cent. The five-year recurring deposit rate is 5.8 per cent.
