The post office also offers certificate investment schemes such as Kisan Vikas Patra and NSCDid you know you can access a variety of banking services at a post office Other than mailing services, India Post - which operates a network of more than 1.5 lakh post offices across the country, provides a variety of banking services.
One can carry out a number of banking-related tasks at a post office: from setting up a savings account under Government of India's small savings schemes to a National Pension System or NPS account (all citizens model), which is a voluntary pension scheme managed by the PFRDA or Pension Fund Regulatory and Development Authority.While an interest rate of 4 per cent is applicable on the deposit in the savings account, investment in the other savings schemes at the post office fetches interest at the rates to the tune of 7 per cent to 8.7 per cent, according to India Post's website - indiapost.gov.in.Post office savings scheme lock-in periodThe savings schemes of Time Deposit, Recurring Deposit, Monthly Income, Senior Citizens, PPF, NSC and Kisan Vikas Patra come with a lock-in period - also known as maturity period - of one year to 15 years, according to the India Post website.Here are some of the banking services offered by the post office (India Post):India Post small savings schemesOne can set up a variety of bank accounts at the post office.
These include a savings account, a time deposit or fixed deposit (FD) account, a recurring deposit (RD) account, a Sukanya Samriddhi account and a Public Provident Fund (PPF) account.
The post office also offers certificate investment schemes such as Kisan Vikas Patra and National Savings Certificate (NSC).Here are the interest rates applicable to the nine small savings schemes for the quarter ending June 30:Savings schemeInterest rateMaturity periodInvestment limitPost Office Savings Account4%-Minimum Rs 20 for opening accountNational Savings Recurring Deposit Account7.30%5 yearsMinimum Rs 10 per month, no maximum limitNational Savings Time Deposit Account7-7.8%1/2/3/5 yearsMinimum Rs 200, no maximum limitNational Savings Monthly Income Account7.30%5 yearsRs 1,500 - Rs 4.5 lakh in single account/Rs 9 lakh in joint accountSenior Citizens Savings Scheme8.70%5 yearsRs 1,000 - Rs 15 lakhPublic Provident Fund8%15 yearsRs 500 - Rs 1.5 lakh per financial yearNational Savings Certificates8%5 yearsMinimum Rs 100, no maximum limitKisan Vikas Patra7.70%2.5 yearsMinimum Rs 1,000, no maximum limitSukanya Samriddhi8.50%-Rs 1,000 - Rs 1.5 lakh per financial year(Source: indiapost.gov.in)Post office savings schemes income tax benefitsInvestment in three of these small savings schemes offered by the post office is eligible for a deduction in taxable individual income up to Rs.
1.5 lakh in a financial year under Section 80C of the Income Tax Act.
These post office schemes are: National Savings Time Deposit (five years), Public Provident Fund (15-year) and Senior Citizen Savings Scheme.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
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