Deposits in small savings amid COVID-19 set to surpass earlier figures in Bengal
The deposits in post offices carry returns assured by the government and the rate of return is a shade higher than that offered by FDs in banks
Deposits in small savings instruments in West Bengal even in the COVID-hit year is set to exceed mobilisations by earlier years. The gross collections in the April 2020-January 2021 in the state stands at Rs 97,927 crore while the net collection is at Rs 17,506 crore.
Annualised, the gross collection figure is set to reach Rs 1,17,112, which is 13% rise compared to the collection in 2019-20 and the net collection Rs 17,506 which would be 7.5% more than the preceeding year.
Withdrawals from the schemes are deducted from the gross collection figure to arrive at the net amount.
Small saving instruments are those that are available from post offices only. These are National Savings Certificate, Kisan Vikas Patra, Sukanya Samriddhi Scheme, Senior Citizen Saving Scheme, Monthly Income Scheme, Public Provident Fund, post office savings account, recurring deposits in post offices and term deposits of 1-5 year tenure.
Among states, West Bengal had highest small savings collection in 2018-19 and 2019-20.
“Deposits in small saving instruments carry a lot of attractions for the common people. They offer assured returns and security of the hard earned money. Moreover, the returns are a shade better than the bank deposits,” said Nirmal Das, general secretary of West Bengal Small Savings Agent Association.
The returns offered by the small savings instruments are as follows: National Savings Certificate (6.8%), Kisan Vikas Patra (6.9%), Sukanya Samriddhi Scheme (7.6%), Senior Citizen Savings Scheme (7.4%), Monthly Income Scheme (6.6%), Public Provident Fund (7.1%), post office savings account (4%), recurring deposits (5.8%) and term deposits (5.5% for 1, 2, 3-year tenure and 6.7% for 5-year tenure).
In 2017-18, the gross collections in Bengal was Rs 76,950 crore which was 15.77% of the all-India figure. Net collections stood at Rs 11,219 crore that was 12.19% of the entire country’s figure.
In 2017-18, Uttar Pradesh went ahead of West Bengal which was pushed to number two. But in the next two years, Bengal reclaimed its top spot.
For 2018-19, the gross collection in the state was Rs 82,815 crore (15.03% of India’s deposits), while the net collection stood at Rs 14,553 crore (13.54%).
In 2019-20 Bengal recorded a gross collection of Rs 87,035 crore (12.5% of the national figure) and a net amount of Rs 19,525 crore (7.27%).
If an individual wants to invest in any instrument in the post office, one has to open a savings account with a minimum amount of Rs 500. All deposits have to be routed through this savings account.
The withdrawals are also routed through this savings account in the post office.