Indian Postal Department is run by the Ministry of Communications, offering various saving and investment schemes to the customers.
As per the official website, indiapost.gov.in of the Indian Postal Department, the savings schemes offered by them are –
- Post Office Savings Account
- Post Office Monthly Income Scheme Account (MIS)
- Post Office Recurring Deposit Account (RD)
- Post Office Time Deposit Account (TD)
- Provident Fund Account (PPF)
- Senior Citizen Savings Scheme (SCSS)
- National Savings Certificates (NSC)
- Sukanya Samriddhi Accounts
- Kisan Vikas Patra (KVP)
Top 10 Things You Must not Miss about the Post Office Savings Schemes
1. One of the best part about post office savings schemes is that the investment can be started with a very low amount. This makes it more popular among the people and as a result, a number of people can afford to invest in these schemes.
The Senior Citizen Savings Scheme
- Minimum investment amount – ₹1000
- Maximum investment amount – ₹ 15 lakhs
Sukanaya Samridhi Yojana
- Minimum investment amount – ₹ 1000
- Maximum investment amount -₹ 1.50 lakh
Public Provident Fund
- Minimum investment amount – ₹ 1000
- Maximum investment amount -₹ 1.50 lakh (per annum)
Post Office Monthly Income Scheme
- Minimum investment amount – ₹ 1500
- Maximum investment amount -₹ 4.50 lakh ( in case of single account)
₹ 9 lakhs (in case of a joint account)
Kisan Vikas Patra
- Minimum investment amount – ₹ 1000
- Maximum investment amount -₹ No limit
Post Office Savings Account
- Minimum investment amount – ₹ 20
- Maximum investment amount -₹ No limit
Post Office Recurring Deposit
- Minimum investment amount – ₹ 1000
- Maximum investment amount -₹ 1.50 lakh (per annum)
5 year NSC ( National Savings Scheme)
- Minimum investment amount – ₹ 100
- Maximum investment amount – No limit
Post Office Time Deposit
- Minimum investment amount – ₹ 200
- Maximum investment amount – No limit
2. Here are the interest rates of all types of post office saving schemes:
Savings Deposit – 4.00% (Annually)
1-Year Time Deposit – 7.00% (Quarterly)
2-Year Time Deposit – 7.00% (Quarterly)
3-Year Time Deposit – 7.00% (Quarterly)
5-Year Time Deposit – 7.80% (Quarterly)
Sukanya Samriddhi Account Scheme – 8.50% (Annually)
5-Year Monthly Income Scheme – 7.70% (Monthly and paid)
5-Year National Savings Certificate – 8.00% (Annually)
5-Year Senior Citizen Savings Scheme – 8.70% (Quarterly and paid)
Public Provident Fund Scheme – 8.00% (Annually)
Kisan Vikas Patra – 7.7% (Annually)
5-Year Recurring Deposit – 7.30% (Quarterly)
3. A post office account for any small savings schemes except the post office recurring deposit scheme can be opened with a minimum amount of ₹ 20 to ₹1,500 depending on the scheme.
4. A minimum investment of ₹10 per month is required, for opening a five-year recurring deposit account in Post office.
5. The yet another good point about having a Post Office Savings Scheme is that you can save your tax on your income by investing in these schemes. Post Office savings schemes qualify for income tax benefits.
One can claim a tax deduction up to ₹ 1.5 lakh in one financial year under the Section 80C of the Income Tax Act.
6. Investors are required to invest a particular amount of money as per the policy they have opted or a minimum sum is required to be deposited in your Post office Savings Scheme to ensure operability.
7. For NSC Saving account with Post Office there is no TDS charged.
The NSC account holder can withdraw the money invested before the maturity. But, this is possible in exceptional cases, such as the death of investor or it possible with a court order.
8. You Should Know for PPF Saving Scheme: Premature closure is not allowed. PPF account has an operational time of 15 years and it cannot be closed this.
One can open the PPF account in a Post Office which is double-handed and above.
9. For all the savings schemes under the Indian Postal Department, the investor has to nominate some person (nominees) to whom the invested amount along with the returns will belong in case the investor is not alive at the time of policy maturity.
10. Under the Senior Citizen Savings Scheme: One can invest under this scheme by opening an account for which- they have to make payment in cash for less than ₹ 1 lakh and for ₹ 1 Lakh or more the payment should be done by cheque only.
TDS is deducted only on the interest, that too if the interest amount is more than ₹10,000/- p.a.
Premature closure is allowed but only after one year on a deduction of 1.5% of the deposit and if done after 2 years 1% of the deposit.
So, if you are looking for a better investment plan which can give you maximum returns, then post office savings scheme is the best option to you!
Start investing now in post office saving schemes and secure your future.
