Post office scheme: India Post provides nine savings schemes, including the FD, RD and PPF accountsOne can access a range of banking services at a post office: from a savings bank account (Post Office Savings Account) to a fixed deposit (under the Post Office Time Deposit Savings Scheme).
Under Government of India's small savings schemes portfolio, the post office offers nine types of investment/deposit options.
These are: Post Office Savings Account,National Savings Recurring Deposit Account,National Savings Time Deposit Account,National Savings Monthly Income Account,Senior Citizens Savings Scheme Account,Public Provident Fund Account,National Savings Certificates Account,Kisan Vikas Patra Account andSukanya Samriddhi Account, according to India Post's website -indiapost.gov.in.India Post operates a network of more than 1.5 lakh post offices across the country.
India Post office also provides accounts under theNational Pension System (NPS) (all citizens model), which is a voluntary pension scheme managed by the PFRDA or Pension Fund Regulatory and Development Authority.( Post office interest rates compared here)( All about your investment options at the post office)Post office savings account interest ratesDeposit in a post office savings account fetches interest at the rate of 4 per cent per annum, according to the India Post website.Post office savings account investment/balance requirementsA Post Office Savings Account can be opened against a minimum deposit of Rs 20.
For a savings account without subscription to the post office's cheque book facility, a minimum balance of Rs50 to ensure operability.
For subscription to the cheque book facility, the savings account is to be opened with a minimum deposit of Rs500, and for this purpose, minimum balance of Rs 500 is required to be maintained, according to the post office portal.India Post also provides internet banking services for its savings bank accounts.Interest rates applicable to other small savings scheme in apost office The nine savings schemes at the post office offer interest rates in the range of 7 per cent to 8.7 per cent.Savings schemeInterest ratePost Office Savings Account4%National Savings Recurring Deposit Account7.30%National Savings Time Deposit Account7-7.8%National Savings Monthly Income Account7.30%Senior Citizens Savings Scheme8.70%Public Provident Fund8%National Savings Certificates8%Kisan Vikas Patra7.70%Sukanya Samriddhi8.50%(Source: indiapost.gov.in)( SBI, India Post fixed deposit maturity options compared)A comparison of lock-in periods and investment limits applicable to small savings scheme accounts in apost officeSavings schemeMaturity periodInvestment limitPost Office Savings Account-Minimum Rs 20 for opening accountNational Savings Recurring Deposit Account5 yearsMinimum Rs 10 per month, no maximum limitNational Savings Time Deposit Account1/2/3/5 yearsMinimum Rs 200, no maximum limitNational Savings Monthly Income Account5 yearsRs 1,500 - Rs 4.5 lakh in single account/Rs 9 lakh in joint accountSenior Citizens Savings Scheme5 yearsRs 1,000 - Rs 15 lakhPublic Provident Fund15 yearsRs 500 - Rs 1.5 lakh per financial yearNational Savings Certificates5 yearsMinimum Rs 100, no maximum limitKisan Vikas Patra2.5 yearsMinimum Rs 1,000, no maximum limitSukanya Samriddhi-Rs 1,000 - Rs 1.5 lakh per financial year(Source: indiapost.gov.in)The 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.( Five types of savings, current accounts one can operate in a post office)Post office certificate-based investment schemesOne can set up a variety of bank accounts at the post office.
Out of the nine small savings schemes, Kisan Vikas Patra and National Savings Certificate (NSC) arecertificate-based investment schemes.( How post office National Pension System (NPS) account works)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.NPS account in a post officeNational Pension System (NPS)enables the subscriber to set his or her own choice for fund allocation to different asset classes, such as government securities, equity market instruments, corporate debt and alternative investment funds.( Investment choices available under NPS explained)Investment in NPS (all citizen model) is eligible for an additional tax benefit up to Rs.50,000 in a financial year, according to the post office website.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
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