| Schemes |
Interest Payable,
Rates, Periodicity |
Investment Limits &
Denominations |
Salient features including Tax Rebate |
| Post Office Savings Account |
- 4 % per annum on individual/ joint accounts
|
Maximum Rs.1,00,000/- for an individual account. INR.2,00,000/- for joint account. |
- Account can be opened with a minimum of Rs. 20
- There is no lock-in / maturity period prescribed.
- A minimum balance of Rs. 50 in simple and Rs. 500 for cheque facility accounts.
- Interest income Tax Free.
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| 5-Year Post Office Recurring Deposit Account |
- Rate of interest 7.5% (quarterly compounded).
- Can be continued for another 5 years on year to year basis.
- You can earn Rs 738.62/-after 5 years for every Rs 10/ invested
|
Minimum Rs. 10/- per month or any amount in multiples of Rs. 5/-.
No maximum limit. |
- One withdrawal up to 50% of the balance allowed after one year.
- Four defaults are allowed.
- Defaults can be paid within two months.
- Part withdrawal facility available.
- 6 & 12 months advance deposits earn rebate.
- Premature closure allowed after three years
|
| Post Office Time Deposit Account |
Interest payable annually but calculated quarterly.
Period Rate
1 yr. A/c 7.70%
2 yr. A/c 7.80%
3 yr. A/c 8.00%
5 yr. A/c 8.30% |
Minimum Rs. 200/- and in multiple thereof. No maximum limit |
- 2,3 & 5 year account can be closed after 1 year at discount.
- Account can also be closed after six months but before one year without interest.
|
| Post Office Monthly Income Account |
8.2% per annum payable In multiples of Rs. 1500/- |
In multiples of INR 1500/-
Maximum Rs. 4.5 lakhs in single account and Rs. 9 lakhs in joint account. |
- Maturity period is 5 years.
- Can be prematurely encashed 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.)
- Best part of this instrument is not known to many monthly interest income can be auto credited to a Savings Bank Account and could be deposited monthly in a Recurring Deposit. This way you can earn as high as 11% per annum.
- Remember you cannot straight away put it in Recurring Deposit, you have to open a Savings Bank account and give a request for automatic transfer of Monthly Income Scheme interest to Recurring Deposit through Saving Bank account
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| 15-year Public Provident Fund Account |
8.6% per annum (compounded yearly). |
Minimum Rs. 500/- Maximum Rs. 1,00,000/- in a financial year. |
- Deposits can be made in lump sum or in 12 installments. Deposits qualify for deduction from income under Sec. 80C of IT Act.
- Interest is completely tax-free.
- Withdrawal is permissible every year from 7th financial year.
- Loan facility available from 3rd Financial year. No attachment under court decree order.
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| National Savings Certificate (VIII issue) |
Rs. 100/- grows to Rs 150 after 6 years. |
Minimum Rs. 100/-
No maximum limit.
Available in denominations of Rs. 100/-, 500/-, 1000/-, 5000/- & 10,000/-. |
- This is another very popular scheme for who are under the tax net.
- This is also used as a popular long term financial gift Can be purchased by an adult on behalf of a minor or to a minor.
- Interest income Tax Free
|
Senior Citizens Savings Scheme
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9% per annum.Interest is payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December |
- There shall be only one deposit in the account in multiple of Rs.1000/- maximum not exceeding rupees fifteen lakh.
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- Interest can be automatically credited to savings account provided both the accounts stand in the same post office. And that can be further channelized to Monthly Income Scheme through written instruction. This is perhaps the best instrument for safe yet high regular return for retired people
- Maturity period is 5 years.
- A depositor may operate more than one account in individual capacity or jointly with spouse. But more than one account cannot be opened in the same post office during a calendar month.
- Age of investor should be 60 years or more on the date of opening the account OR
- Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement
- Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest
- No withdrawal shall be permitted before the expiry of a period of five years from the date of opening of the account.
- The depositor may extend the account for a further period of 3 years
- In case of death of the depositor before maturity, the account shall be closed and deposit refunded without any deduction along with interest.
- TDS is deducted at source on interest if the interest amount is more than Rs.10,000/- per annum.
- The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act.
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