INSUBCONTINENT EXCLUSIVE:
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
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;
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
maturity period of five years
The interest is payable on a monthly basis
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
deposit with post office is Rs
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
15-year public provident fund accountThe PPF account fetches an interest rate of 7.6 per cent
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
Kisan Vikas Patra (KVP) accountThe post office pays an interest rate of 7.3 per cent on deposits in the KVP account
The KVP scheme requires a minimum investment of Rs 1,000
