Savings with post office recurring deposit
Savings is essential for every family. You save small amounts and get a big money in the end. I have lot of experience with many savings schemes. Because my father was a Lic Agent. He also dealt with Post office RD (recurring deposits), chits , mutual funds etc. Now my father is no more and his business is continued by my brother and another brother's wife.
Savings in post office is safe and also give a decent interest. Indian postal department, a government of India Institiute carries out these schemes. For recurring deposit You have to deposit a fixed amount each month for 60 months or 5 years. You can not draw funds with in 3 years. After 3 years you can close the account and withdraw the entire amount with interest. The interest rate is, i think around 7-8 percent.
I just opened an RD account in my son's name for Rs. 500 per month. He born on April, 2 , 2010. I started the account in this same month to remember his birth event! I recommend every parent to start such savings in their son/daughter's name to give them a bright and happy future. You can even start Deposit accounts in Nationalized banks also. Lic of India also offers good schemes. Contact your agent for more details.