Post office Saving Schemes

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Postal Deposits are the best and risk free source of investment. Postal Deposits are popular in mostly rural areas and among retired people who lives alone without children. People with no or low risk appetite love to invest in post office schemes.

Sl. No.Name of SchemeInvestment LimitsRates of Interest and DurationSalient Features
1Post Office Savings AccountMinimum INR. 20/-4.0 % per year on joint as well as individual accountsTax free interest and cheque facility
2Post Office Time Deposit AccountMinimum INR. 200/- and later in multiples of this amount with no upper limit Interest calculated quarterly but payable annually For 1 year: 8.40% For 2 years: 8.40% For 3 years: 8.40% For 5 years: 8.50% With an option of being opened by a person, this scheme helps in tax saving under Income Tax Act Section 80 C in India
35 Year Post Office Recurring Deposit AccountMinimum INR. 10/- in every month or an amount leading to multiples of INR. 5/- without any maximum limit INR. 10/- account after maturity fetches INR. 746.53/- and can be re-invested again for another 5 years on yearly basis Post 1 year, even 50 % of the total balance can be withdrawn. Advance deposits of 6 months and 12 months earn rebate.
4Post Office Monthly Income Account SchemeAmount needs to be multiples of INR. 1,500/- and joint account holders can make a maximum deposit of INR. 9 lakhs whereas, for single account holders, the maximum limit is INR. 4.5 lakhs8.40% per year (W. e. f. 01.01.2014) Maturity period: 5 years Premature encashment can be done post completion of 1 year with applicable conditions. M. I. S. accounts started on or after 1st December, 2011 do not qualify for bonus.
5National Savings Certificate (VIII issue)Minimum INR. 100/- and in multiples without any upper limitPost 5 years, INR. 100/- increases to INR. 150.90/-Deposits as well as interest qualify for tax saving as covered by the Section 80 C of the Indian I. T. Act. Can be bought by an individual or for a minor or on behalf of minors.
615 Year Public Provident Fund Account Maximum INR. 1,50,000/ - and minimum INR. 500/- in a business year with the facility of making deposits in 12 months or in lump sum8.70% per year (W. e. f. 01.04.2014)Post 3rd financial year, loan facility is available and after the 7th financial year, withdrawal can be made on a yearly basis. This scheme along with its interest is tax free as per the Indian I. T. Act's Section 80 C.
7Senior Citizen Savings SchemeA single deposit in multiple of INR. 1, 000/- without exceeding INR. 15 lakhs 9.3% per year payable from deposit's date on 31st March or 30th September or 31st December and interest will be payable on each quarter end of a year An individual can operate multiple accounts or joint account with spouse. After 1 year, premature closure can be done on a deduction of 1.5 % of interest and if done so after 2 years, interest deduction will be 1 %. T. D. S. gets deducted from the interest at source in case the amount of interest exceeds INR. 10, 000/- p. a. Tax benefit, according to the Section 80 C of the I. T. Act of India, is even available with this scheme.

Sec.80C benefit: Investments up to ` 1 lakh in specified securities(maximum of ` 70000 in PPF)qualify for deduction.

Last Updated on : June 13, 2015