Financial Literacy Unit 9: Post Office Financial Services

Flashcards about Post Office Financial Services

Post Office Saving Scheme

Steady and stable financial instruments that act as a security net against market uncertainty, offering reasonable returns and capital protection.

Post Office Savings Account (SB)

A post office saving scheme similar to a bank savings account, applicable across India, especially in rural areas, allowing one account per individual transferable between post offices.

Post Office Recurring Deposit (RD)

A mid-term saving scheme that allows investment for five years through monthly instalments.

Post Office Time Deposit (POTD)

A post office saving scheme that provides the facility of different tenures for investment, similar to a fixed deposit account with a bank.

Post Office Monthly Income Scheme (POMIS)

A unique investment scheme that guarantees fixed monthly returns on the lump sum investment.

Kisan Vikas Patra (KVP)

A small saving certificate scheme introduced in 1988 to encourage long-term financial discipline among people.

Senior Citizen Saving Scheme (SCSS)

A retirement benefit scheme supported by the government of India, available for people whose age is more than 60 years, providing a regular flow of income after retirement.

Sukanya Samriddhi Yojana/Account (SSY/SSA)

Introduced in 2015 as a part of the “Beti Bachao, Beti Padhao” initiative for promoting girl child education.

Lock-in Period

The time period during which the investor cannot sell or withdraw the invested amount.

Nomination

Banking service that allows an account holder or investor to name someone who can claim the investment or deposit after the original account holder's death.

Payout

Expected monetary disbursements or financial returns from annuities or investments.

Pledge

Person who accepts a pledge for a loan and lends money.

TDS

A direct taxation mechanism in which taxes are collected from the income source itself.