Post Office Small Saving Schemes
Post Office Saving Account
* Interest payable 4.0% per annum on individual / joint accounts.
* Account can be opened by cash only and the minimum amount required for
opening an account is Rs. 20/-.
* The minimum balance needs to be maintained in a non-cheque facility
account is Rs. 50/-.
* You will get cheque facility if the account is opened with Rs. 500/-
and for this purpose you have to maintain a minimum balance of Rs. 500/- in your
account. Cheque facility can also be taken in an existing account.
* Interest earned up to Rs 10,000/- in a year is tax free from the financial
year 2012 - 2013.
* Nomination facility is available at the time of opening the account
and also after opening of account.
* You can transfer your account from one post office to another. You are
allowed to open only one account in one post office.
* An account can be opened in the name of a minor also. A minor of ten years
and above age can open and operate his/her account. Two or three adults can
open a joint account.
* Minimum one transaction in three financial years is necessary to keep
the account active.
* Single account can be converted into joint and vice versa.
* A minor after attaining majority has to apply for conversion of the
account in his/her name.
* You can deposit and withdraw through any electronic mode in CBS post
offices.
* ATM facility is available.
5-Year Post Office Recurring Deposit Account
* From 01.04. 2020, the interest rates are as follows:
5.8% per annum (quarterly compounded). RD account can be continued for another 5 years on year to
year basis.
* The minimum amount for opening an account is Rs. 10/- per month or any
amount in multiples of Rs. 5/-. There is no maximum limit.
* An account can be opened by cash or cheque.
* The nomination facility is available at the time of opening the
account and also after opening of the account.
* You can transfer your account from one post office to another. You are
allowed to open any number of accounts in any post office.
* An RD account can be opened in the name of a minor also. A minor of ten years
and above age can open and operate his/her account. Two or three adults can
open a joint account.
* If account is opened up to 15th of a calendar month then the subsequent
deposit can be made up to 15th day of next month. If account is opened between
16th day and last working day of a calendar month then the subsequent deposit
can be made up to last working day of next month.
* A default fee is charged for each default if the subsequent deposit is
not made up to the prescribed day. The default fee @ 5 paisa for every 5 rupee
shall be charged. After four regular defaults, the account becomes discontinued.
It can be revived in two months but if the same is not revived within this
period, no further deposit can be made.
* If there are defaults in deposits then you have to first pay the
defaulted monthly deposit along with default fee. This will be applicable in
all post offices.
* You will get a rebate on advance deposit (at least 6 installments).
* A single account can be converted into joint account and vice versa.
* After attaining majority, minor has to apply for conversion of the
account in his/her name.
* After one year, one withdrawal upto 50% of the balance is allowed.
* The date of credit of cheque into Government accounts will be counted as
date of deposit if deposit is made by cheque.
Post Office Monthly Income Account
* Suitable scheme for retired employees/ senior citizens and for those
who need regular monthly income.
* From 01.04.2020, interest rates of 6.60% per annum payable monthly.
* The minimum investment amount is Rs. 1500 or in multiples thereafter. The
maximum investment limit is Rs. 4.5 lakhs in single account and Rs. 9 lakhs in
joint account.
* Nomination facility is available.
* You can transfer your Post Office Monthly Income Account from one post office to another. You are
allowed to open any number of accounts in any post office subject to the maximum
investment limit by adding balance in all the accounts.
* An account can be opened in the name of a minor also. A minor of ten years
and above age can open and operate his/her account. Two or three adults can
open a joint account.
* Maturity period of the scheme is 5 years from 1.12.2011. The Post Office Monthly Income Account can be prematurely closed after 1 year but before 3 years at the discount of 2%
of the deposit and after 3 years at the discount of 1% of the deposit.
Post Office Time Deposit Account (TD)
* Time deposit account can be opened for 1 year, 2 year, 3 year and 5
year. Interest payable annually but calculated quarterly. From 1.04.2020,
interest rates are as follows: for 1 yearr A/c 5.5%, for 2 year A/c 5.5%, for 3 year A/c 5.5% and for 5 year A/c 6.7%
* Minimum Rs. 200/- and in multiple thereof. There is no maximum limit.
* Nomination facility is available.
* An account can be opened in the name of a minor also. A minor of ten years
and above age can open and operate his/her account. Two adults can open a joint
account.
* When a time deposit account is matured in CBS post offices, the same time
deposit account will be automatically renewed for the period for which the
account was initially opened. Interest rate applicable on the day of maturity
will be applied.
* If a time deposit accounts is closed before 1 year, savings account
interest rates will be payable.
* The investment under 5 years time deposit qualifies for the benefit of
Section 80C of the Income Tax Act, 1961.
15 Years Public Provident Fund (PPF) Account
* PPF is an ideal investment
option for both salaried as well as self employed classes.
* From 1.04.2020, interest
rates of 7.10% per annum (compounded yearly).
* The minimum deposit is
500/- and the maximum deposit is Rs. 1,50,000/- in a financial year.
* The deposits can be made
in a single lump sum or in 12 installments during a financial year.
* The deposits made qualify
for deduction from income under Sec. 80C. Interest is completely tax-free.
* Maturity period of PPF
account is 15 years but can be extended within 1 year of maturity for another 5
years and so on.
* Withdrawal in PPF account is
permissible every year from 7th financial year.
* Loan facility available
from 3rd financial year.
* Nomination facility is
available.
* You can also open and
maintain a PPF account in the name minors but subject to maximum investment
limit by adding balance in all accounts.
Note: This post was
originally published in October 2015 and has been completely updated for
accuracy and comprehensiveness.
Also read: What is NPS (National Pension System)?
Also read: What is Atal Pension Yojana?
Also read: How to invest in mutual funds online?
Also read: SBI Recurring Deposit Account (RD Account)
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Post Office Small Saving Schemes
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