India Post (post office) account return: Individuals can choose from a range of savings scheme accountsDid you know you can choose from nine different types of accounts at the post office today Besides postal services, India Post - which has a network of more than 1.5 lakh post offices across the country - offers several types of banking and remittance services.
These nine types of accounts are part of the post office savings scheme.
These are: savings account, recurring deposit account, time deposit account, monthly income scheme account, senior citizen savings scheme account, public provident fund or PPF account, national savings certificate account, Kisan Vikas Patra (KVP) account and Sukanya Samriddhi account.
The post office pays interest rates in the range of 4 per cent-8.3 per cent in these savings schemes, according to India Post's website - indiapost.gov.in.Post office saving schemeInterest rate (annual return)TermMinimum amount required for opening accountPost office savings account4%-Rs 205-year recurring deposit account (RD)6.9% (compounded on a quarterly basis)5 yearsRs 10 per monthTime deposit account (TD)6.6-7.4%1-5 yearsRs 200Monthly income scheme account (MIS)7.3%5 yearsRs 1,500Senior citizen savings scheme (SCSS)8.3%5 yearsRs 1,00015-year public provident fund account (PPF)7.6%15 yearsRs 500National savings certificates (NSC)7.6% (compounded on an annual basis; payable at maturity)5 yearsRs 100Kisan Vikas Patra (KVP)7.30%118 monthsRs 1,000Sukanya Samriddhi account8.1%21 yearsRs 1,000(Source: indiapost.gov.in)Some of these schemes also offer income tax benefits under Section 80C of the Income Tax Act, according to India Post.
Financial planners say that savings scheme accounts provide the investor with flexibility and one can select a post office savings scheme based on his or her personal financial goals.1.
Savings accountThe post office pays an interest rate of 4 per cent per annum on deposits in its savings account.
A person can open a savings account against a minimum deposit amount of Rs 20.
In case of a savings account without a cheque book facility, the customer is required to maintain a minimum of Rs 50 as balance, according to the India Post website.2.
Recurring deposit (RD) accountThe post office pays an interest rate of 6.9 per cent in its recurring deposit account.
The interest is compounded on a quarterly basis.On maturity, a recurring deposit of Rs 10 per month fetches a return of Rs 717.43 over a maturity period of five years.
The account can be opened against a minimum of Rs 10, according to India Post.3.
Monthly income scheme (MIS) accountThe post office offers an interest rate of7.3 per cent on deposit in the monthly income scheme account.
The interest is payable on a monthly basis.
The minimum investment required to set up a monthly income account is Rs1,500, according to India Post.4.
Time deposit (TD) or fixed deposit accountThe post office offers the time deposit account in four options of maturity period: 1 year, 2 years, 3 years and 5 years.
The interest rate ranges from 6.6 per cent to 7.4 per cent, according to India Post.The minimum investment that you require to open a fixed deposit with post office is Rs.
200.5.
Sukanya Samriddhi accountA Sukanya Samriddhi scheme account fetches an interest rate of 8.1 per cent.
The minimum amount required for investment in this scheme - which is meant for the girl child - is Rs 1,000.
The account is opened in thename of the girl child by a guardian.6.
Senior citizen savings scheme (SCSS) accountThe post office pay an interest rate of8.3 per cent on deposits in the senior citizen savings account.
The post office permits onlyone deposit in this account of an amount in a multiple Rs 1,000.7.
15-year public provident fund accountThe PPF account fetches an interest rate of 7.6 per cent.
The account can be opened with an investment of a minimum of Rs 500.Deposits can be made in lump sum or in 12 installments, according to India Post.8.
National savings certificates (NSC)The National savings certificate account fetches an interest rate of 7.6 per cent.
The interest is compounded annually and payable at maturity.
Investment can be made against a minimum of Rs100 as deposit.
An amount of Rs 100 returns Rs 144.23 after the maturity period of fiveyears in this account, according to India Post.9.
Kisan Vikas Patra (KVP) accountThe post office pays an interest rate of 7.3 per cent on deposits in the KVP account.
The interest iscompounded on an annual basis.
The KVP scheme requires a minimum investment of Rs 1,000.
The amount deposited in the Kisan Vikas Patra accountdoubles in a period of 118 months, according to India Post.