The Post Office Saving has been delivering this fantastic service since 1854 to the customer. At the starting time, https://www.indiapost.gov.in/Financial/pages/content/post-office-saving-schemes.aspx engaged in delivering posts to the home but later on, it also started providing financial services to the customer. This is entirely controlled by the government so there is no chance of being a fraud. Post Office works as a bank and gave attractive schemes to the customer. Many people are taking benefit of the Post Office Saving Schemes. In this post, we will look at all the schemes of the post office in respective of best returns, account opening process, zero balance account, benefits, etc. Read this article to find the best account that fits you.
Post Office Saving Schemes 2023
Post Office Saving Scheme has several schemes for customers in order to provide the best account for their future. In modern times, many banks demand maintaining a minimum balance. In your case, it may be the Rs 5000 or 10000 but normal poor people can not fill full these types of requirement. Under Post Office Saving Schemes, there is no maintained minimum balance in your account. Post Office Schemes come up with several products and risk-free return on investment of customers in a particular scheme. Post Office Scheme provides you a high rate of interest and tax benefits in comparison to other banks.
As we know, all the schemes of the Post Office are backed by the government and guarantee returns because of the government. Section 80C will let you take tax benefits, i.e. tax exception of up to Rs 1,50,000 is allowed. Very famous and best schemes are called Public Provident Fund(PPF), National Saving Certificate(NSC), Skhanya Samriddi Yojna(SSY), Post Office Time Deposit For a 5 Year Term, and Senior Citizen Savings Scheme (SCSS), and more.
All Post Office Schemes List
| Scheme | Interest Rate | Minimum Investment | Maximum Investment | Eligibility | Tax Implications |
| Post Office Savings Account | 4% per annum (p.a.) | –Rs 20 –Non-cheque facility – Rs 50 |
No limit | Resident Indian, minor and major | Tax-free interest up to Rs 50,000 from the financial year 2018-19 |
| Post Office Time Deposit Account (TD) | First-year – 5.5% p.a. Second-year – 5.5% p.a. Third Year – 5.5% p.a. Fourth Year – 6.7% p.a. |
Rs 200 | No limit | Individual | -Tax benefits up to 5 years under Section 80C on deposits -TDS to be deducted on interest earned for more than Rs 40,000 p.a.(Rs 50,000 in case of senior citizens) |
| Post Office Monthly Income Scheme Account (MIS) | 6.6% per annum payable monthly | Rs 1,500 | For single account- Rs 4.5 lakh Joint account accounts- Rs 9 lakh |
Individual | -Interest earned is taxable, and no deduction under Sec 80C for deposits made. -TDS to be deducted on interest earned for more than Rs 40,000 p.a.(Rs 50,000 in case of senior citizens) |
| Senior Citizen Savings Scheme (SCSS) | 7.4% p.a. (Compounded annually) | Rs 1,000 | Maximum deposit over the lifetime allowed at Rs 15 lakh | Individuals of age> 60 years or age >55 years who have opted for VRS or superannuation | – Tax benefit under Section 80C for deposits – TDS to be deducted on interest earned for more than Rs 50,000 p.a. |
| 15-year Public Provident Fund Account (PPF) | 7.1% p.a. (Compounded annually) | Rs 500 per financial year | Rs 1.5 lakh per financial year | Individual | Tax rebate under Section 80C for deposits (maximum Rs 1.5 lakh p.a.) Interest is tax-free. |
| National Savings Certificates (NSC) | 6.8% p.a. (Compounded annually) | Rs 100 | No limit | Individual | Tax rebate under section 80C for deposits (maximum Rs 1.5 lakh p.a.) |
| Kisan Vikas Patra (KVP) | 6.9% p.a. (Compounded annually) | Rs 1,000 | No limit | Individual (Adult) | Interest is taxable, but no tax on the amount received on maturity |
| Sukanya Samriddhi Accounts | 7.6% p.a. (Compounded annually) | Rs 1,000 per financial year | Rs 1.5 lakh per financial year | Girl Child – up to 10 years from birth and one additional year of grace | Investment (up to Rs 1.5 lakh exempt under Section 80C), interest and amount received on maturity is tax-free |
Required Documents for Post Office Saving Schemes
You must have all relevant documents for opening an account under Post Office Schemes. Keep documents that have been discussed below to avoid trouble.
- Aadhaar card
- Driving license(if have)
- Voter’s ID card
- Form (in whichever you want to open your account.)
- KYC Form
- PAN
- Job card
- Proof of date of birth
Benefits of Post Office Schemes
- Tax Exemption= Most of the accounts will give you tax rebates under section 80C such as PPF, Sukanya Samriddhi Yojana, etc.
- Risk-free and competent interest rates= Post Office is backed by the government so it is risk-free. Along with that, you can get a 4% to 8% interest rate under the Post Office Schemes.
- Simple Investment Process = Opening an account with minimum documentation and getting fixed returns as per your scheme. It is absolutely secure because of government control.
- Long-term Benefits = For the purpose of future and long term investment may be a turning point for your old age. Investment in PPF account for up to 15 years may be the best retirement or pension plan.
- Easy Accessible= It has a larger number of branches all over India as well as an online platform to access from your device. Rural, as well as urban populations, easily access the branches of the Post Office.
- Products Customization for customers = They have customized their products according to customer needs. It is the best decision for Post Office because different customer has different needs.
How To Apply For Post Office Saving Account
It is easy and simple to apply for Post Office Saving Account. The below-mentioned points tell you the exact way of opening an account.
- In the first step, you need to visit the post office branch whatever is near you.
- Then take the form of a Post Office Saving Account from the service provider.
- Fill up the form with accurate information. You can also download from online mode.
- Submit the form with the photocopy of your documents.
- You have to also fill out the KYC form to take more benefits.
- You will inform you when all the will be done.
- Then you can deposit and make payments.
Post Office Recurring Deposit Account (5-Year RD)
- Interest Payable = 5.8 % per annum (quarterly compounded)
- Opening of account For Minimum Amount and maximum balance= Minimum INR 100/- per month or any amount in multiples of INR 10/-. No maximum limit.
- Above the age of 10 years can open an account in his name.
- The minimum limit of the deposit amount is 100 or the multiple of Rs 10.
- You can get a loan after 12 installments from any branch of the Post Office.
- Your recurring deposit account maturity will occur after 60 installments.
- Nomini can get the amount of the account holder’s death.
National Savings Time Deposit Account(TD)
Interest Rate Payable = Interest is payable annually but calculated quarterly.
Opening of account For Minimum Amount and maximum balance= Minimum INR 1000/- and in multiple of 100. No maximum limit.
| Period | Rate |
|---|---|
| 1yr.A/c | 5.5% |
| 2yr.A/c | 5.5% |
| 3yr.A/c | 5.5% |
| 5yr.A/c | 6.7 % |
- The joint account adult’s number is up to 3.
- You can open an account as per your need for 1 year to 5 years.
- The minimum investment is Rs 1000 and the multiples of Rs 100.
- whatever year you have selected maturity has been done after that year.
- You can not withdraw the amount before the six months.
National Savings Monthly Income Account(MIS)
- In multiples of INR 1000/-
- The deposit limit is INR 4.5 lakh in a single account and INR 9 lakh in a joint account
- An individual can invest a maximum of INR 4.5 lakh in MIS.
- No deposit shall be withdrawn before the expiry of 1 year from the date of deposit.
Senior Citizen Savings Scheme (SCSS)Interest Rates= 7.4 % per annum, 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.
Opening of account For Minimum Amount and maximum balance= There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding INR 15 lakh.
Public Provident Fund Account(PPF )Interest Rates= 7.1 % per annum (compounded yearly).
Opening of account For Minimum Amount and maximum balance=
- Minimum INR. 500/- Maximum INR. 1,50,000/- in a financial year.
- Deposits can be made in lump sums or in installments.
Sukanya Samriddhi Account(SSA)Interest Rates= Rate of interest of 7.6% Per Annum(with effect from 01-04-2020 ), calculated on yearly basis, Yearly compounded.
Opening of account For Minimum Amount and maximum balance=
- Minimum INR. 250/-and Maximum INR. 1,50,000/- in a financial year.
- Subsequent deposits in multiples of INR 50/- Deposits can be made in lump-sum No limit on the number of deposits either in a month or in a Financial year
Kisan Vikas Patra(KVP)Interest Rates=
- 6.9 % compounded annually
- Amount Invested doubles in 124 months (10 years & 4 months)
Opening of account For Minimum Amount and maximum balance= Minimum of Rs. 1000/- and in multiples of Rs. 100/- No Maximum Limit