India Post is a Government operated postal system in India. India Post offers a number of Investment plans and Saving Plans. Some of these plans offered by the Post office will offer tax-saving benefits under section 80C of the Income-Tax Act. Below is the List of Latest Saving schemes and Investment Schemes offered by the India Post.
- Post Office Savings Account.
- National Savings Recurring Deposit Account.
- National Savings Time Deposit Account.
- National Savings Monthly Income Account.
- Senior Citizens Savings Scheme Account.
- Public Provident Fund Account.
- National Savings Certificates (VIII Issue) Account.
- Kisan Vikas Patra Account.
- Sukanya Samriddhi Account.
Apart from the above schemes, The post office also promotes central government schemes like Pradhan Mantri Jeevan Jyoti BimaYojna (PMJJBY), Pradhan Mantri Suraksha BimaYojna(PMSBY), Atal Pension Yojna(APY), National Pension System, etc.
- Post Office Savings Account:
- Minimum Deposit : Rs.500/-
- Interest Rate : 4% PA
- Cheque facility/ATM facility is available
- Interest earned is Tax-Free up to INR 10,000/- per year
- At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active, else account became silent (Dorment)
- Minor after attaining majority has to apply for conversion of the account in his name
- Intra Operable Netbanking/Mobile Banking facility is available
- Online Fund transfer between Post Office Savings Accounts/Stop Cheque/Transaction View facility is available through Intra Operable Netbanking/Mobile Banking
- Facility to link with IPPB Saving Account is available
- Funds Transfer (Sweep in/Sweep out) facility is available with IPPB Saving Account.
- National Savings Recurring Deposit Account:
- Minimum Deposit : Rs.100/- Per Month or Additional in multiples of Rs.10.
- Interest Rate : 5.8% PA (Quarterly Compounded)
- Nomination facility is available
- Premature closure is allowed after three years from the date of opening of the account
- An account can be transferred from one post office to another
- Any number of accounts can be opened in any post office
- One loan up to 50% of the balance allowed after one year.
- The date of maturity will be 5 years after the date of opening. An account can be extended for further 5 years.
- National Savings Time Deposit Account:
- Minimum Deposit: Rs.1000/- or Additional in multiples of Rs.100.
- Interest Rate as on (30-06-2020): From 1 Yr to 3 Yrs: 5.5% PA
- The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
- The annual interest may be credited to the savings account of the account holder.
- Nomination facility is available
- Premature encashment not allowed before the expiry of 6 months, If closed between 6 months to 12 months from the date of Opening, Post Office Saving Accounts interest rate will be payable.
- National Savings Monthly Income Account:
- Minimum Deposits: In multiples of INR 1000/-
- Maximum investment limit is INR 4.5 lakh in a single account and INR 9 lakh in the joint
- account
- An individual can invest a maximum of INR 4.5 lakh in MIS (including his share in
- joint accounts)
- Interest Rate: 6.6% PA.
- Maturity Period: 5 Years
- Interest can be drawn through auto credit into savings account standing at the same post office
- Can be prematurely En-cashed after one 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. (Discount means deduction from the deposit.)
- Nomination facility is available
- Senior Citizens Savings Scheme Account
- Minimum Deposit: Rs.1000/-
- Maximum Deposit: Rs: 15 Lakh/-
- Interest Rate: 7.4% PA
- Eligibility:
- An individual of the Age of 60 years or more
- An individual of the age of 55 years or more who have retired on superannuation or under VRS. the account should be opened within one month of receipt of retirement benefits and the amount should not exceed the amount of retirement benefits
- Retired personnel of Defence Services (excluding Civilian Defence Employees) shall be eligible at the age of 50.
- Maturity period is 5 years
- Premature closure is allowed,
(i) If closed before 1 year, no interest will be payable, if paid already will be recovered.
(ii) after one year on deduction of an amount equal to1.5% of the deposit to be deducted
(iii) after 2 years 1% of the deposit to be deducted.
- After maturity, the account can be extended for further three years within one year of the maturity by giving application
- TDS is deducted at source on interest if the interest amount is more than INR 50,000/- PA
- Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961
- Public Provident Fund Account
- Minimum Deposit: Rs.500
- Maximum Limit: Rs: 1,50,000 in a financial year.
- Interest Rate: 7.1% PA
- Joint account cannot be opened
- Nomination facility is available
- The maturity period is 15 years but the same can be extended within one year of maturity for further 5 years
- Premature closure is can be allowed after 5 years from the end of the year in which the account was opened subject to the following conditions. 1% interest will be deducted from the date of account opening
(i) In case of life-threatening disease of an account holder, spouse, or dependent children.
(ii) In case of higher education of account holder or dependent children.
(iii) In case of change of resident status of the account holder
- Deposits qualify for deduction from income under Sec. 80C of IT Act
- Interest is completely tax-free
- The loan can be taken after the expiry of one year from the end of the year.
- National Savings Certificates (VIII Issue) Account
- Minimum Deposit: Rs.1000/- or Additional in multiples of Rs.100.
- Interest Rate: 6.8% PA Compounded Annually.
- Deposits qualify for tax rebate under Sec. 80C of IT Act.
- The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.
- Transfer of certificates from one person to another can be done only once from the date of issue to the date of maturity.
- Kisan Vikas Patra Account
- Minimum Deposit: Rs.1000/- or Additional in multiples of Rs.100.
- Interest Rate: 6.9% PA Compounded Annually.
- The facility of nomination is available
- Certificate can be transferred from one person to another and from one post office to another.
- Certificate can be encashed after 2 & 1/2 years from the date of issue.
- Sukanya Samriddhi Account
- Minimum Deposit: Rs.250 and Additional in multiples of Rs.50/-
- Maximum Limit: Rs: 1,50,000 in a financial year.
- Deposits can be made in lump-sum
- Interest Rate: 7.6% PA
- Eligibility:
- A legal Guardian/Natural Guardian can open an account in the name of Girl Child.
- The account can be opened up to the age of 10 years only from the date of birth.
- A guardian can open only one account in the name of one girl child and a maximum of two accounts in the name of two different Girl children
- Deposits may be made in the account till the completion of a period of fifteen years from the date of opening of the account
- Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.
- Account can be closed after completion of 21 years.
- Normal Premature closure will be allowed after completion of 18 years on the occasion of marriage (1 month before and 3 months from date of marriage).
Disclaimer:All the above information is for educational purposes only, and the above schemes are not to be considered as recommendations as the above data might vary from actuals in the period. kindly read the scheme and policy-related documents carefully before investing in any saving schemes and visit the official website for more information.
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