INSUBCONTINENT EXCLUSIVE:
Much like banks, post offices offer the facility of fixed deposits and recurring deposits.India Post, which also offers banking services
besides postal services, offers several savings schemes for small savers
Much like banks, post offices across the country offer the facility of fixed deposits and recurring deposits
The monthly income scheme or MIS of post offices offers a regular income to savers
The interest rates on post office fixed deposits, recurring deposits and MIS range from 6.6 per cent to 7.4 per cent
The three schemes are among the total nine schemes offered by India Post, which is also starting its payment banks soon.Given below is a
comparison of post office fixed deposit, post office recurring deposit, post office monthly income scheme:Post office fixed depositAlso
known as time deposit, post office fixed deposit accounts can be opened by an individual via cash/ cheque
The account can be transferred from one post office to another
A nomination facility is available at the time of opening and also after opening of the fixed deposit account
While there is no limit on the maximum amount that can be deposited in this account, a minimum of Rs 200 and is required to open the post
office fixed deposit account.Post office FD rates 2018Interest on post office payable annually but calculated quarterly.PeriodRate1
yr.A/c6.60%2 yr.A/c6.70%3 yr.A/c6.90%5 yr.A/c7.40%The investment under five years fixed deposit qualifies for the benefit of Section 80C of
the Income Tax Act, 1961.Post office recurring depositThe post office RD account, known as the five-year post office recurring deposit
account can be set up with a minimum amount of Rs
In a recurring deposit, the investor deposits a fixed amount of money in regular intervals
Contribution in multiples of Rs
5 can be chosen to invest in the five-year RD account
The account comes with the option of withdrawal of up to 50 per cent of the balance after one year, among other features.Post office
recurring deposit rates 2018Post office recurring deposit offers an interest rate of 6.9 per cent per annum
10 - in which the account holder pays Rs
10 every month - provides a return of Rs
717.43 in the maturity period of five years.Post office monthly income schemePost office monthly income scheme accounts can be opened by
individuals via cheque/ cash
An individual can invest maximum Rs
4.5 lakh in MIS (including his share in joint accounts)
The account can be prematurely en-cashed after one year but before three years at the discount of 2 per cent of the deposit and after three
years at the discount of 1 per cent of the deposit
(Discount means deduction from the deposit.)Post office MIS interest rate 2018Post office monthly income scheme offers interest rate of 7.3
The interest on post office MIS account is payable on a monthly basis.(Except for the headline, this story has not been edited by
TheIndianSubcontinent staff and is published from a syndicated feed.)
