The Department of Postal (DoP) is the world’s largest and one of the oldest postal network operated by Indian Government till date. The postal service comes under the Ministry of Communication. The post office also acts as an agent to deliver a variety of government scheme. The post office also includes numerous schemes and different types of account primarily savings account is one of them.
Types of Post Office Savings Schemes
Post Office Savings Account
Post Office Savings Account is a savings account that offers the same benefit as a normal bank savings account. The account holder will get full banking service from the post office including a passbook, debit card, net banking Etc. The post office also provides an interest rate very similar to the banks. The interest rate of the post office is 4% per annum. The Post Office Savings Account comes with a minimum investment of Rs.20 and there is no limit on the upper limit. The interest on this account is tax-free.
5-years Post Office Recurring Account (RD)
The post office Recurring Deposit offers one of the best savings schemes. The minimum amount of Rs 10 can be deposited into the account every month and there is no limit to the maximum amount. There is also a tax benefit offered by the postal office. The interest rate of the account is 6.9% per annum.
Post Office Time Deposit (TD)
In this type of account, the money is deposited in the account for a specific period of time and the money is paid by the bank after the maturity period. Time Deposit is an account type that offers its customers an interest rate that ranges from 6.6%-7.6% per annum. In this account, the premature withdrawal is made by giving prior notice to the bank.
Post Office monthly income scheme (MIS)
In the monthly income scheme, the deposit is made in a lump sum and the return on investment is paid every month by the post office bank. The interest rate is around 7.3% per annum and the maturity period ranges from 5-10 years this scheme has a lock-in period of 5 years. The money can be withdrawn when the scheme matures.
Post Office Senior Citizen Savings Scheme (SCSS)
This scheme is for those who are retired and want to invest their retirement money in a profitable scheme to support their old age. This scheme is only available for people above the age of 60 and a special allowance for the defense retiree of the age 50. The interest rate is very impressive 8.3% per annum is the interest rate.
15 Years Public Provident Fund (PPF)
Saving for the retirement is very important as this gives the power to be independent. Post office, as well as many more banks, offers PPF scheme for the benefit of the retired person. It is a government-backed scheme and offers a very good return. The interest rate of the scheme is 8.0% per annum and this is also tax-free. The tenure period is 15 years. Check the interest and return in PPF using PPF calculator for 15 years.
National Savings Certificates (NSC)
NSC is a Government of India savings bond that offers a tax benefit. The minimum amount that can purchase this scheme is Rs. 100 and the interest rate is 7.3% per annum.
Kisan Vikas Patra (KVP)
Kisan Vikas Patra is a savings scheme that offers its customer to double their money in 118 months after the investment. The interest rate is 7.6% per annum. The minimum amount is Rs. 1000 and there is no upper limit in this scheme.
Sukanya Samriddhi Account
Sukanya Samriddhi Yojna is available at the post office too along with other selected banks. This scheme is very good for the girl child. This offers an interest rate of 8.1% per annum. The maturity period of this account is 21 years but the premium paid is for only 14 years. A minimum of Rs. 250 is required to open this account.
The benefit of the Post Office Savings Scheme
- At present post office, savings account offers 4% per annum.
- Minimum account opening fee is INR 20.
- You need to keep in a minimum balance of at least INR 50 in a non-cheque facility account and account that has a cheque facility, a minimum amount of INR 500 has to be maintained.
- The interest earned from the post office savings is not taxed up to INR 10,000.
- You can fill in the details of the nominee at a time or after starting your account.
- Your account can be transformed from one post office to another.
- The account can be opened in the name of the minor.
- A joint account is also available in this account along with another adult or two.
- You need to do a minimum of one fund transfer in three financial years.
- If the account is opened for a minor, he/ she can apply to get it in their name after turning 18.
- Cash depositing and withdrawals can be performed through any electronic mode in Core Banking Solution (CBS) Post offices.
- Inter post office fund transfers can be done between CBS post offices.
- ATM cum Debit Cards can be distributed to Savings Account users (having agreed on a minimum balance on the day of card issuance) of CBS Post offices.
