How safe are post office schemes compared with bank deposits?

Why safety matters to small investors

Safety is usually the top priority when saving money, especially for small investors who have little leeway for putting their capital at risk. Bank fixed deposits and post office schemes both remain popular choices as they offer a guaranteed return and government guarantee. But exactly how do they match up with regard to safety, accessibility, and overall reliability?

Post office schemes: the government's guarantee

Government-supported post office schemes like the Public Provident Fund (PPF), National Savings Certificates (NSC), and income schemes on a monthly basis are guaranteed by the government. In other words, they are nearly risk-free in terms of default. Your principal amount is secure, and most of the time your returns also are fixed or lock