INSUBCONTINENT EXCLUSIVE:
Some of the post office saving schemes also qualify for income tax benefits.India Post, which has a network of more than 1.5 lakh post
offices across the country, offers nine types of saving schemes
These include the savings account, the five-year recurring deposit (RD), the time deposit or fixed deposit (FD), the Monthly Income Scheme
(MIS) account, the Senior Citizens Savings Scheme (SCSS), the 15-year Public Provident Fund (PPF) and the National Savings Certificates
(NSC), according to India Post's website - indiapost.gov.in
Interest rates on these post office saving schemes move in line with the government's interest rates on small savings schemes, which are
revised on a quarterly basis.Minimum amount required to open accountsCustomers are required to invest a certain sum of money as the minimum
deposit in these post office saving accounts to ensure operability
A post office account under any of the small savings schemes except recurring deposit can (RD) be opened with a minimum investment of Rs
website.Given below are the minimum investments required in different types of post office saving accounts:Account nameMinimum amount
required to open accountSavings account (Cheque account)Rs 20Savings account (non Cheque account)Rs 20Monthly Income Scheme (MIS)Rs
1,500Fixed Deposit (FD) AccountRs 200Public Provident Fund (PPF)Rs 500Senior Citizen Savings Scheme (SCSS)Rs 1,000(Source: India Post
website)Interest rates offered on post office saving schemesFor the current quarter, ending on June 30, 2019, investment in post office
Post currently pays interest at the rate of 4 per cent per annum on deposit in its savings account, according to India Post's website
Post office RD account offers an interest rate of 7.3 per cent while the MIS account offers an annual return of 7.7 per cent, according to
India Post.In case of post office fixed deposit or time deposit account, interest rates are available across four maturities: one, two,
Investment in time deposits (TDs) of one-year, two-year and three-year maturity periods fetch an interest of 7 per cent
8.7 per cent per annum respectively
NSCs and Kisan Vikas Patra grant 8 per cent and 7.7 per cent per annum of interest rate respectively
The current interest rate on Sukanya Samriddhi account is fixed at 8.5 per cent per annum.Saving schemes that offer tax benefitsSome of
these post office saving schemes also qualify for income tax benefits
Using post office saving schemes such as Time Deposit (TD), Senior Citizen Savings Scheme (SCSS), Public Provident Fund (PPF), National
Savings Certificates, an investor can claim a deduction up to Rs 1.5 lakh in a financial year from taxable income under Section 80C of the
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