Post office Saving Schemes
Overall Rating:  [5/5]Total Votes [ 11 ] |
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| Sl. No. | Name of Scheme | Investment Limits | Rates of Interest and Duration | Salient Features |
|---|---|---|---|---|
| 1 | Post Office Savings Account | Minimum INR. 20/- | 4.0 % per year on joint as well as individual accounts | Tax free interest and cheque facility |
| 2 | Post Office Time Deposit Account | Minimum 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 |
| 3 | 5 Year Post Office Recurring Deposit Account | Minimum 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and can be re-invested again for another 5 years on yearly basis | Post 1 year, even 50 % of the total balance can be withdrawn.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. |
| 4 | Post Office Monthly Income Account Scheme | Amount 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 lakhs | 8.40% 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. |
| 5 | National Savings Certificate (VIII issue) | Minimum INR. 100/- and in multiples without any upper limit | Post 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. |
| 6 | 15 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 sum | 8.70% 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. |
| 7 | Senior Citizen Savings Scheme | A 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
