Important Saving Schemes of Post Office Part 4

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Important saving schemes of post office

Important Saving Schemes of Post Office

Important saving schemes of post office

Post Office Savings Bank Account

It is a type of account in which we can deposit our savings in post offices and withdraw it whenever required. A minimum number of Rupees Fifty is required to open the account and we can deposit a maximum of Rupees one lac in our account in the case of individual. The account can be jointly operated and, in that case, the maximum limit of deposit can be raised to rupees two lac. Money can be withdrawn from the account by using withdrawal slips or cheques. Post office pays interest on our deposits, which is totally exempted from income tax.

5-Year Post Office Recurring Deposit Scheme

A Recurring Deposit account can be opened with a minimum amount of Rs 10/ with is a multiple of Rs.5/- without any maximum limit. The deposit is to be made every month for a period of 5 years. After one year, 50% of the deposit can be withdrawn only once during the five-year period. There is no restriction to open more than one recurring deposit account in the name of a single individual. On maturity INR 10/ account fetches INR 728.90. This account can be continued for another 5 years on year to year basis.

Post Office Time Deposit Account

Any individual can open this account with a minimum balance of Rs.200/-, without any maximum limit. The depositor makes deposit in lump sum and that amount matures after the expiry of a fixed period like one, two, three or five years. Interest on this account is given on annual basis but computed quarterly. This account can also be opened by a Trust. The deposit amount as well as interest income is exempted from income tax.

Post Office Monthly Income Scheme

Under this scheme a fixed sum of money is deposited for six-years and the depositors get the interest on it every month. A minimum amount of Rs.1,500/- and maximum of Rs.4.5 lakh in individual account and Rs.9 lakh in case of joint account can be deposited. In addition to interest the deposit amount also earns bonus at the rate of 5% which is payable on maturity. Both interest as well as bonus is exempted from income tax. This account is suitable for retired employees or anybody who wants a regular income just like pension or salary.

6-Year National Savings Certificates (VIII Issue) Scheme

National Savings Certificates (NSC) can be purchased from the post office by

  • An adult for himself or herself or for any minor or by any minor;

  • Two adults jointly; or A trust

  • A trust. Minimum amount of deposit is Rs.100/ - and there is no maximum limit of deposit. These certificates are available in denominations of Rs.100/-; Rs.500/-;

    Rs.1, 000/-; Rs.5, 000/-; and Rs.10, 000/-. Interest is compounded half yearly and payable at maturity. After 6 years, these certificates can be encashed from the post office. Interest income is treated as re-investment and is subject to tax rebate. This deposit scheme is very popular among the income tax payers.

15 Year Public Provident Fund Account (PPF Account)

Individuals can open this account in their own name or in the name of their minor child. In this account at least one deposit is required in every year. An account holder can deposit up to a maximum Rs. 70,000/- in a year, which can be deposited either in lump sum or in maximum of 12 instalments. A minimum deposit of Rs. 500/- is required to be made each year. The amount of each deposit should be in multiple of Rs. 100/-. That means you cannot deposit any amount like Rs. 1,250/- or Rs. 3,785/-, rather it may be like Rs.1, 200/- or Rs. 3,700/-. Loan facility is available after 3 years whereas withdrawal of money from the account is allowed from the 7th year onwards. The deposit amount gets rebate under income tax and the interest income is fully tax-free.

Kissan Vikas Patra Scheme

In this scheme a fixed sum of money gets doubled within a certain period. Money can be deposited in Kissan Vikas Patras by-

  • Any adult for himself or herself or for any minor;

  • Two adults jointly; or a trust.

  • These are available in the denomination of Rs.100/-, Rs.500/-, Rs.1,000/-, Rs.5,000/-, and Rs.10, 000/- at all post offices while Kissan Vikas Patra of Rs.50, 000/denomination is available only at General Post Offices (GPO). There is no maximum limit of investment. Money can be withdrawn before its maturity but there is a minimum period called lock-in period within which your money cannot be withdrawn.

Senior Citizen Saving Scheme

In senior citizen saving scheme a person can deposit only once in the multiples of Rs 1000/ but not more than Rs 15,00,000/. Maturity period is 5 years. It can be operated individually or jointly with spouse. The age should be 60 years or more, and interest is payable on 31 March, 30 June and 31 December, in the first instance and thereafter, interest shall be payable on 31 March, 30 June, 30 Sept and 31 December

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