Post Office offers several saving schemes to help you invest a part of your hard earned income and see it grow. Different schemes have been launched to match the saving and investment requirement of people belonging to different income groups. Here is a look at the various Post Office Saving Scheme Accounts.
1. Post Office Savings Account
Post office savings account can be opened by depositing a cash amount of 20/-. In a non-cheque facility post office savings account the minimum balance to be maintained is INR 50/-. Cheque facility is available if an account is opened with INR 500/- and a minimum balance of the same amount is maintained. It offers an interest rate of 4% per annum. One account can be opened in one post office and it can be transferred from one post office to another.
It can be opened in the name of a minor and can be operated by anyone who is 10 years of age or above. The account can be kept active with a minimum of one transaction of deposit or withdrawal in three financial years. ATM facility is available for this account.
2. Post Office Monthly Income Scheme Account (MIS)
The account can be opened by depositing a minimum of INR 1,500/- or deposits in multiples of INR 1,500/- Maximum of INR 4.5 lakh can be deposited in a single account and maximum of INR 9 lakh can be deposited in joint account. The account can be opened by depositing cash or cheque. Joint account can be opened by two or three adults and all joint account holders must have equal share in each account. The maturity period of this account is 5 years. The interest for this account is 7.3% per annum payable monthly.
3. National Savings Certificates (NSC) of Post Office Saving Scheme Accounts
This can be opened with a minimum balance of Rs. 100/- or amounts in the multiples of Rs. 100/- There is no maximum limit for this account. An adult can buy a single holder certificate for himself or on behalf of a minor. It can even be bought by a minor.
The interest rate for 5 Years National Savings Certificate (VIII Issue) is 8% compounded annually. This is payable at maturity. The deposits for this account qualify for tax rebate under Sec. 80 C of IT Act.
4. Post Office Time Deposit Account (TD)
INR 200/- is the minimum amount required for opening of this account. There is no limit to the maximum deposit amount. Interest is paid annually but calculated quarterly. The account can be opened by cash as well as a cheque. Any number of accounts can be opened in any post office. An account can be opened in the name of a minor and can be operated by anyone who is 10 years old or above. One year account offers a rate of interest of 6.9%, 2 year account offers a rate of interest of 7%, 3 years account offers a rate of interest of 7.2% and 5 years account offers a rate of interest of 7.8%.
5. Senior Citizen Savings Scheme (SCSS)
Specifically launched for senior citizens, this account can be opened by individuals who are 60 years old or more. An individual who is between the age of 55 and 60 years and has retired on superannuation or under VRS can also open this account however some conditions need to be filled in this case. The maturity period of this account is 5 years. Only one deposit is accepted for the account. It can be opened with a minimum deposit of INR 1000/- or multiples of INR 1000/-. It offers an interest rate of 8.7% per annum. Post Office Saving Scheme Accounts
The account can be opened by an individual or jointly with spouse. 6. 5 Year Post Office Recurring Deposit Account (RD) Minimum amount of INR 10/- per month is required to open and maintain this account. There is no limit to the maximum deposit in this account. It offers a quarterly compounded interest rate of 7.3%.
The account can be opened by depositing cash or cheque. Any number of these accounts can be opened in any of the post offices. The account can be opened in the name of a minor and can be operated by anyone who is 10 years old or above. A withdrawal of up to 50% of the balance is allowed after a period of one year.
7. Kisan Vikas Patra (KVP) of Post Office Saving Scheme Accounts
This scheme requires a minimum amount of Rs. 1000/-. Multiples of Rs. 1,000/- can be deposited to avail this post office savings scheme. There is no limit to the maximum amount. It offers a compounded interest of 7.7% annually. The amount invested doubles within a period of 112 months. Kisan Vikas Patra (KVP) can be purchased from any Departmental Post Office. It can be transferred from one person to another. The facility to transfer it from one post office to another is also available. These can be encashed after 2 1/2 years.
8. Sukanya Samriddhi Accounts
This account can be opened with a minimum amount of INR 1000/- Maximum of 150,000 can be deposited in this account during a financial year. However, no limit has been set on the number of deposits during a month or year. A minimum amount of INR 1000/- is to be deposited in the account every financial year. It offers a rate of interest of 8.5% per annum which is compounded yearly.
A legal guardian can open the account in the name of girl child. Only one account can be opened in the name of one girl child. Account can be opened up to the age of 10 years only.
9. 15 Year Public Provident Fund Account (PPF) This account can be opened by depositing INR 100/- however, a minimum of INR 500/- needs to be deposited in a financial year. The maximum deposit amount for this account is INR 150,000/-. The account can be opened by depositing cash or cheque. The maturity period for this account is 15 years. This can be extended for further 5 years each time within the maturity. There is no provision of premature closure of the account. It offers an interest rate of 8% per annum compounded annually. The interest is completely tax free.