Tuesday, April 21, 2015

Post Office Savings Schemes

Indian Post Office is the best place for small savings as well as long term savings.India Post has a great small saving banking and financial service.Generally in rural area post office is still a place where people save their money in safe and secure.Now a days Indian Post Office is expanding it financial services by shot term and long term savings schemes.Here we will look in detail of all Post Office Savings Schemes and also Post Office Savings Schemes Interest Rate.

Now Indian Post Office has 9 nos of savings schemes both in long term and short term.

1.Post Office Savings Account :

Post office saving account is like another saving account in public or private sector bank.Features of post office savings account are -

  • Interest rate is 4% per year.

  • Minimum amount for account opening is Rs. 20 /- (Only Cash ,no check or other mode of payment is not applicable)

  • Minimum amount for maintaining account is Rs. 50 /- (For non cheque) & Rs. 500 /- for (With cheque facility)

  • Account can be open by individual or by jointly with two or three account holder.

  • Account can be transferred from one post office to another post office.

  • Nomination facility is available.

  • Internet Banking Facility is available in CBS Post offices.

  • Upto Rs .10000 /- is tax exempted.

  • ATM/Debit Card Facility is available on all CBS Post offices.


Read 5 Reasons to Buy Gold in Akshaya Tritiya

2.Recurring Deposit Account :


Recurring Deposit is one of the best small saving scheme with a smart interest.Like all bank this facility is also available in post offices.Main features of recurring deposit are as -

  • Interest rate is 8.4%  7.4 % per year (w.e.f : 01.04.2016 ) . (Compound interest)(Interest calculated quarterly)

  • Minimum tenure is 5 years.

  • Minimum deposit amount is Rs. 10 /- per month and no maximum deposit amount limit.

  • Account can be open by individual or by jointly with two account holder.

  • Account can be open at any post office and can be transferred from one post office to another post office.

  • Nomination facility is available.

  • Internet Banking Facility is available in CBS Post offices.

  • 50 % withdrawn is available on total balance amount after completion of one year from the date of opening.


Read Recurring Deposit Interest Rate and Easy Steps to Open a Recurring Deposit on SBI

3.Time Deposit Account :


Time deposit is also a good investment term for high amount.It has a good return.This account can be opened for 1 year,2 year,3 year and 5 year .Main features of the account are as -

  • Interest rate is as for 1 yr to 3 yr account -8.40% and for 5 yr account - 8.50% 1 Year A/c - 7.1 % , 2 Year A/c - 7.2 % , 3 Year A/c - 7.4 % and 5 Year A/c - 7.9 % (w.e.f : 01.04.2016 )

  • Minimum deposit amount is Rs. 200/- and no limit for maximum amount.

  • Account can be open by individual or by jointly with two account holder.

  • Account can be open at any post office and can be transferred from one post office to another post office.

  • Nomination facility is available.


4.Monthly Income Scheme ( MIS ) Account :


Monthly Income Scheme is a popular savings scheme in post office.It has good feature like monthly interest payment.This works like pension policy.Look at the features of MIS -

  • Interest rate is 8.40%  7.80 % yearly (w.e.f : 01.04.2016 ) but paid monthly.

  • Maximum saving limit is INR 4.5 Lac for an individual and INR 9 Lac for joint account holder.

  • It deposit amount will be multiple of Rs 1500 /-

  • One account holder can save maximum of 4.5 lac in case of joint account.

  • Maturity year is 5 year from the date of opening.

  • Account can be open by individual or by jointly with two or three account holder.

  • Account can be open at any post office and can be transferred from one post office to another post office.

  • Nomination facility is available.

  • Monthly interest can be withdrawn from savings account at same post office.


5.Senior Citizen Savings Scheme (SCSS) Account :

Senior Citizen Savings Scheme is good investment scheme for senior citizens (above 60 year age). This account a good interest rate and a high deposit limit.Main features of the account are as -

  • Higher interest rate of 9.3% 8.6 % (w.e.f : 01.04.2016 ) per year.

  • For first year interest will be paid on 31st March,30th Sept,31st December and from second year interest will be paid on 31st March,30th June,30th Sept and 31st December.

  • Maximum deposit limit INR 15 Lac and deposit should be on one time.

  • Only Senior Citizen (at age 60 years or above) can open this account

  • Maturity time is 5 Years from the date of account opening

  • Account can be operated by individual or by jointly with his/her spouse

  • Upto Rs 1 Lac account can be open by cash but above that cheque is required

  • Account can be open at any post office and can be transferred from one post office to another post office.

  • TDS will deduct in case of interest amount exceed Rs 10000 /-


6.Public Provident Fund :


Public Provident Fund is a great long time investment scheme.Like all banks post office have also this scheme.Look at the features of Public Provident Fund -

  • Interest rate of 8.70%  8.10 % per year (w.e.f : 01.04.2016 ) . (Compound Interest)(Interest credited yearly)

  • Minimum investment is Rs 500 /- yearly and maximum is Rs .150000/- .

  • You can deposit money monthly,one time or more than one time but should not cross more than 12 times.

  • Maximum investment limit is 15 years and on the day of maturity you can extend it for more 5 years.

  • You will get benefit of income tax rebate under section 80C.

  • Loan can be taken against the balance amount after 3 year from the date of investment.

  • Account can be open by individual or by jointly with two or three account holder.

  • Account can be open at any post office and can be transferred from one post office to another post office.

  • Nomination facility is available.


Read How to check Provident Fund (PF) account balance Online

7 .National Savings Certificates (NSC) (5 Year) & (10 Year) :


National Savings Certificates is an unique long time investment scheme.This scheme has a high return.Two type of certificate can be brought for 5 year and another one is for 10 years.Main features of the scheme are as -

10 Year National Savings Certificate has been discontinued by Ministry of Finance (India).

  • Interest rate on 5 year certificate - 8.50 % 8.10 % (w.e.f : 01.04.2016 ) and for 10 year certificate -8.80% .

  • No maximum investment limit.

  • Upto saving of Rs 1,00,000 /- will get income tax benefit under section 80C of Income Tax Act.

  • On purchase of Rs. 100 /- certificate the maturity value will be Rs. 151.62 /- for 5 year and for 10 years it will be Rs. 234.35 /- . (With this you can calculate your maturity value. like if you invest Rs . 1,00,000 /- for 5 year certificate ,the maturity value will be Rs. 151620 /- and for 10 year certificate,the maturity value will be Rs. 234350 /- )


8.Kisan Vikas Patra (KVP) :

Kisan Vikas Patra (KVP) is scheme where money doubles after certain time of investment.Feature of KVP are as -

  • Invested amount doubles in 100 110 months (w.e.f : 01.04.2016 ) .

  • Minimum investment is Rs. 1000 /-  and there after denominations are Rs. 5,000,10,000 and 50,000 and for maximum investment there is no limit.

  • Certificate can be purchased by individual or by jointly with two adults at any Post Office.

  • Nomination facility is available.

  • Certificate can be encashed  after 2.5 year from the date of purchase of certificate.


9.Sukanya Samriddhi Accounts :

Sukanya Samriddhi Accounts (SSA) is a new investment scheme only for girl child of 10 year old age or below.Main features of the scheme are as-


  • Anyone can open this account who have a girl child under age 10 year.

  • Open this account at post office and maximum public or private sector banks.

  • Minimum Deposit Amount -Rs. 1000 /- per financial Year and Maximum Deposit Amount - Rs. 150000 /- per financial Year .

  • High compound interest rate of 9.2 % 8.6 % (w.e.f : 01.04.2016 ) per year.

  • Full deposit,interest and matured amounts are totally tax exempted u/s 80C upto Rs. 150000 /- .

  • This account can be opened when a girl child take birth till she became 10 years.

  • This account can be close after 21 year from the account opening date or before marriage of your girl ,whichever is earlier.

  • If you want to close the account before 21 year from the date of account opening ,you need to submit an affidavit that your girl become 18 year old.

  • You can withdraw 50% of the total amount for your girl child's education purpose when your girl become 18 year old.


For more on Sukanya Samriddhi Accounts (SSA) read Sukanya Samriddhi Accounts Details

all above schemes are very good scheme for long time & short time investment.Before go for investing just keep your PAN Card Xerox Copy and other identity documents.So keep investing at Indian Post Office.
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4 comments:

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