Forget bank FDs; this Post Office scheme offers a fund of Rs 7.25 lakh..
Bank fixed deposits (FDs) are considered a safe option for savings; however, in such investments, the funds—along with accrued interest—are typically received only at the time of maturity. In contrast, there are certain schemes that offer both savings and insurance coverage, along with the benefit of receiving periodic payouts. The 'Gram Priya' scheme from the Post Office is one such plan, specifically designed to cater to the needs of rural families. It allows individuals to build a fund for the future through the payment of regular premiums.
The Gram Priya scheme has a tenure of 10 years and falls under the 'Rural Postal Life Insurance' category. A key feature is that the policyholder receives insurance coverage for the entire 10-year duration. Additionally, the scheme provides for periodic payouts at specified intervals. These funds can be helpful in meeting minor household expenses, children's educational costs, or other financial requirements. It should be noted, however, that the payout amounts and premium costs depend on the sum assured chosen and the applicable rules.
What is the Post Office 'Gram Priya' scheme?
Gram Priya is a 10-year 'money-back' insurance scheme offered by the Post Office. Its objective is to provide individuals living in rural areas with the dual benefits of savings and life insurance. The scheme allows for a minimum sum assured of ₹10,000 and a maximum of ₹5 lakh. The policyholder is required to pay premiums regularly.
While standard insurance policies typically provide a payout only upon the completion of the policy term, the Gram Priya scheme includes periodic payments. This ensures that the policyholder maintains insurance coverage while also receiving funds at set intervals. The scheme also includes a provision for appointing a nominee.
How can one receive ₹7.25 lakh over 10 years?
To understand the payouts under this scheme, one can consider the example of a policy with a sum assured of ₹5 lakh. According to the provided details, a bonus of ₹45 per ₹1,000 of the sum assured is offered annually. Thus, for a sum assured of ₹5 lakh, the annual bonus amounts to ₹22,500. Over a period of 10 years, the total bonus could reach ₹2.25 lakh.
Additionally, the scheme provides for periodic payouts of the sum assured at specified intervals. In this example, combining these payouts with the bonus, the total maturity amount could be ₹7.25 lakh. The actual premium and the final payout may vary based on age, the sum assured, and the terms and conditions of the policy. Therefore, it is advisable to obtain a written calculation from the Post Office before investing.
Similarly, if you opt for a sum assured of ₹2 lakh under the 'Gram Priya' scheme, a bonus of approximately ₹90,000 could accumulate over 10 years (based on an annual bonus of ₹45 per ₹1,000 of the sum assured). This would result in a total payout of approximately ₹2.90 lakh, structured as follows:
Upon completion of 4 years: ₹40,000
Upon completion of 7 years: ₹40,000
Upon completion of 10 years: ₹1.20 lakh + ₹90,000 (bonus)
Please note that the 'sum assured' (₹2 lakh) and the 'total premium' to be paid are distinct factors. The premium will depend on your age and the specific terms and conditions of the policy.
What is the difference between the 'Gram Priya' scheme and a bank Fixed Deposit (FD)?
Both 'Gram Priya' and bank FDs have their own respective advantages. A bank FD offers a fixed rate of interest on the deposited amount, whereas 'Gram Priya' is an insurance scheme. It combines savings with life insurance coverage and also provides the facility of periodic payouts during the policy term.
Gram Priya Scheme | Bank FD
Investment Method | Regular premium payments | Lump sum or installment deposits
Tenure | 10 years | Varies by bank
Insurance Coverage | Provided under the policy | Generally not provided
Intermediate Payouts | Payouts at scheduled intervals | Interest earned based on the chosen option
Returns | Depend on the sum assured and bonuses | Depend on a fixed interest rate
Suitable For | Those seeking both savings and insurance | Those looking to deposit money to earn interest
Things to Consider Before Investing
Gram Priya can be a suitable option for those who wish to save regularly while also providing insurance protection for their family. However, it should not be viewed merely as an investment for earning interest, like a bank fixed deposit (FD). Both schemes have different terms and conditions, as well as different structures for payouts.
Before investing, consider your age, your capacity to pay premiums, and the needs of your family. Additionally, obtain information from your nearest post office regarding the current bonus rate, scheduled intermediate payouts, the maturity amount, and the rules governing the policy. This will help you make an informed decision tailored to your specific needs.
Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
