INSUBCONTINENT EXCLUSIVE:
Besides decent annual returns, some of these post office schemes also offer income tax benefits.India Post, the postal system of the
country, offers several savings schemes which not only require modest contribution but also offer attractive investment return
Five savings schemes of India Post - savings account, recurring deposit account, fixed deposit account, monthly investment scheme, and
sukanya samriddhi account, offer interest rates ranging from 4 per cent to 8.1 per cent
Besides decent annual returns, some of these schemes also offer income tax benefits under Section 80C of the Income Tax Act
post office monthly income scheme (MIS), and post office sukanya samriddhi accounts:Post office savings accountPost office savings account
can be opened by cash only, said India Post
Interest earned is tax-free up to Rs 10,000 but beyond that, the interest income is taxable
Savings account fetches an interest rate of 4 per cent per annum, which means the annual return from the India Post's savings account will
increase by 4 per cent on a yearly basis
Post office savings account offers an ATM card
Deposits and withdrawals in post office savings accounts can be done through electronic mode also.Post office recurring deposit (RD)Post
office recurring deposits have tenures up to five years
Post office recurring deposits need you to make payments at regular intervals
Investment can be done with a minimum Rs
10 per month or any amount in multiples of Rs
5, stated India Post on its website, indiapost.gov.in
There is no maximum investment limit on the recurring deposit instalment
account is opened up to 15th of a calendar month, and up to the last working day of next month, if it is opened between 16th day and last
working day of a calendar month.Post office recurring deposit accounts offer a quarterly-compounded interest rate of 6.9 per cent per annum
A recurring deposit account in which a subscriber contributes Rs
10 every month fetches a return of Rs
717.43 on maturity.One withdrawal up to 50 per cent of the balance is allowed after one year
It may be repaid in one lump sum along with interest at the prescribed rate.Post office monthly investment scheme (MIS)While post office
recurring deposits require payments at regular intervals, the return on post office monthly income scheme comes at regular periods, India
Post said.The minimum amount required for opening a post office monthly income scheme account should be in multiples of Rs
It can be increased thereafter
The maximum investment limit is Rs
4.5 lakh in single account and Rs
An individual can invest maximum Rs
4.5 lakh in MIS (including his share in joint accounts).Deposits in post office monthly income scheme account fetch an interest rate of 7.3
per cent per annum payable monthly.The maturity period of a post office monthly investment scheme is five years
Interest can be drawn through auto credit into savings account standing at the same post office.Post office schemeAnnual return (interest
monthNo limitTime deposit account (TD)6.6-7.4%Rs 200No limitMonthly Income Scheme (MIS) account7.30%Rs 1,500Rs 4.5 lakhSukanya Samriddhi
investment that you require to open a fixed deposit with post office is Rs
The interest is payable annually but calculated quarterly
The account can be transferred from one post office to another.Interest rate on one-year post office fixed deposit is 6.6 per cent, on a
two-year post office fixed deposit is 6.7 per cent, on a three-year post office fixed deposit is 6.7 per cent, and on a five-year post
office fixed deposit is 7.4 per cent
Investment under five years fixed deposit qualifies for benefit under Section 80C of the Income Tax Act, 1961.Sukanya Samriddhi SchemeThis
is a government-run scheme for the girl child
This scheme requires a minimum investment of Rs 250 per year, as stated by the government recently
Earlier, the minimum investment was Rs 1,000 per year
1,50,000 is the investment limit in a financial year
Subsequent deposits should be made in multiple of Rs
Deposits can be made in lump-sum amount
There is no limit on the number of deposits either in a month or in a financial year.The account can be opened up to age of 10 years only
A legal guardian/natural guardian can open the account in the name of girl child.A guardian can open only one account in the name of one
girl child and maximum two accounts in the name of two different girl children.Sukanya Samriddhi Schemes offer an interest rate of 8.1 per
The investment is calculated and compounded on an annual basis.
