Monday, 20 November 2017

Post Office Small Saving Schemes

Post Office Small Saving Schemes

Post Office Small Saving Schemes



Post office small saving schemes are safe and attractive investment options for the people. These schemes also help to mobilize resources for development.

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 01.10. 2018, the interest rates are as follows:
7.3% 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 01.10.2018, interest rates of 7.70% 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 1.10.2018, interest rates are as follows:
for 1yr A/c 6.9%, for 2yr A/c 7%, for 3yr A/c 7.2% and for 5yr.A/c 7.8%
* 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 1.10.2018, interest rates of 8% 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.



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Post Office Small Saving Schemes

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